Car Leasing and Auto Insurance

admin — Sat, 02 Jan 2010 08:39:00 +0000

When you want to lease a car usually you will think that it is much easier for you to use the same company with your auto insurance. However, there is something that you probably don’t realize is, you perhaps will pay more for the coverage so sometimes it is better for you to find for lower rate elsewhere. When you lease a car, that car is not really yours, it belongs to the company that lease the car. With this reason in mind, it makes sense if they want to ensure that the car you drive is completely covered from any damages or theft. Most of the time the company want to get covered for the differences among what your car insurance pays and the outstanding leasing at the time this bad things happened. This is referred as Guaranteed Auto protection or usually called as GAP, and most likely it has been included on your leasing contract.

If your leasing company is called BMW Financial Services, Chrysler Financial or any other finance division of an automaker, then chances are your GAP insurance will be offered by the same lease company. You are under no obligation to accept GAP insurance included as part of your lease agreement. Why pay an insurance premium if you could get the same coverage for a lower price?

Invest some time shopping by comparing quotes from other insurance companies, including your existing one. Ask for discounts that you already qualify for and adjust your coverage accordingly.

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Car Leasing and Auto Insurance