Auto Insurance and Leasing
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Written by Chad Cook
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Wednesday, 07 June 2006 |
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When leasing a car, its easier to stick by the exact company for your
auto insurance. What you don't know, nonetheless, is that you may end up
paying too large of an amount for your coverage and its better to look elsewhere for
reduced rates.
When you lease, the vehicle that you will drive belongs to the leasing
company. They desire to get certain that their investment is overspread in the
event the vehicle gets damaged, totalled or stolen. They normally desire
to get covered for the difference between what your auto-insurer pays and
your outstanding leasing obligations at the period of the accident or
damage. This is called GAP, short for Guaranteed Auto Protection, and is
usually included in the leasing agreement. If your leasing company is named BMW Financial Services, Chrysler Financial or any other finance division of an automaker, formerly chances are your GAP insurance purpose will be offered by the same lease company.
You are under no obligation to take GAP insurance included as a piece of
your lease contract. Why pay an insurance premium if you could get the
same coverage for a lower expense. Invest lots of time shopping by comparing quotes from other insurance companies, including your real one. Ask for discounts that you already qualify for and adjust your coverage accordingly.
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