How to Insure a Leased Car
Many people are now opting to lease a car instead of buying one. They still have to insure it legally, but how do you insure a leased car in Orange County?
Many people are now opting to lease a car instead of buying one. They still have to insure it legally, but how do you insure a leased car in Orange County? If you lease a car, you still need to purchase car insurance. The auto dealer or bank that is financing the car will surely require you to purchase collision and comprehensive insurance before they allow you to drive off the lot. You will need to buy these coverages in addition to any of the policies that are mandated by your state. How do you insure a leased car in Orange County?
- Comprehensive Auto Insurance: This policy provides coverage that is caused by something other than a collision with another car or object like a tree branch, missile, meteorite, theft, deer, etc.
- Collision Auto Insurance: This provides coverage if the car is damaged in a traffic-related accident.
The leasing company with which you choose to go may also require you to purchase gap insurance. If you get into a particularly nasty accident, there will likely be some money you still owe your lease company even after your insurance check comes in the mail. This is because the insurance company’s check amount is based on the car’s actual cash value, which takes into account the depreciation that a car experiences as time goes forward. Gap insurance covers an accident in which your car is totaled, and that includes that difference you may owe at the end of the day.
Generally, gap insurance is already included in your lease agreement.
If you lease, you still have to insure your vehicle. Our staff at Remland Insurance is very experienced in all matters regarding auto insurance in Orange County and surrounding areas. Please contact us for any further questions regarding your car insurance! We at Remland Insurance will treat you like a human being and give you the care and coverage that you deserve.
