Finance and Credit Professional

In the excitement that comes with leasing a vehicle, you may not be considering how your current auto insurance requirements may change. However, an auto lease will often carry some important insurance requirements that are part of the lease agreement. You can avoid unpleasant surprises if you plan for the change in your auto insurance situation before you finalize your lease.

When you are driving a leased vehicle, it still belongs to the leasing company. They will want to make sure that their vehicle is covered for physical damage in case of an accident. In addition, they will also want to make sure they will be covered in case of any liability if you are found to be at fault in the accident. You will be required to carry comprehensive and collision coverage on the vehicle, which will cover it for physical damage, usually with no more than a $500 deductible. If you are carrying a higher deductible on your current policy, be prepared to possibly pay more on your auto insurance for the lower deductible.

Your liability limits will usually need to be $100,000 per person and $300,000 per accident. This means your insurance company will pay up to the total amount per person injured if you are at fault, and a total amount for the whole accident, regardless of how many people are injured.

Auto insurance liability is an area where you many need to make an adjustment to your current policy. Many people only carry what their state requires for liability auto insurance. However, you should probably always have this higher liability coverage in place, whether you are leasing or not, as you want to sufficiently protect yourself from accidents and lawsuits. If your insurance policy doesn't have enough to cover the damages, the money will, in many cases, come out of your pocket.

Getting an auto lease is a good time to start shopping around and comparing auto insurance quotes. The financing company may offer insurance, but you can usually get a better deal by looking elsewhere. Of course, you should get a new quote from your current insurance company, but because you will have a different vehicle, you will probably get the most savings by insurance comparison shopping. The Internet is a good place to start, and there are a variety of Insurance quote comparison sites that offer rates from many different insurance companies.

Your auto insurance needs change when you have to insure a leased vehicle. By considering this part of the leasing process, you will save money, time, and aggravation. If you start auto insurance shopping when you are in the leasing process, you will get a head start.

About The Author :

Amy Wells writes and reports on http://www.autolease.yourtechtool.com. Looking for auto leasing information information? Find up-to-date

auto lease resources, methods, and consumer tips at:

Related News

Credit card can rescue 11th-hour tax filers (Fairview Observer)
What's a taxpayer to do who has yet to pay Uncle Sam before Tuesday night's tax filing deadline? If you ask Link2Gov and Official Payments, the two vendors authorized by the IRS to accept credit card payments, just charge it to plastic. ...more

Amex offers short-term credit (The Record)
Credit card issuers learned long ago that many small-business owners use their personal credit cards to fill gaps in cash flow. So why not come up with cards that are geared specifically for small businesses? ...more

Debt ratio raises rate (The Courier News)
D ear Debt Adviser: I recently received a letter from a creditor stating that it would be raising the interest rate on its credit card, effective the next month. As I have not been late paying this or any other debt, I thought this was unusual. I asked why, when I called to opt out. The creditor ...more

5 operations you don't want to get -- and what to do instead (CNN.com)
Maybe I'm the wrong ex-patient to be telling you this: Experimental surgery erased Stage III colon cancer from my shell-shocked body six years ago. But even I've got to admit that all is not well in America's operating rooms: At least 12,000 Americans die each year from unnecessary surgery, according to a Journal of the American Medical Association report. And ...more

Real estate recovery hopes fizzle with rise of mortgages in default (Sun-Sentinel)
Foreclosure filings across South Florida continue to rise, as hopes for a housing recovery have fizzled. ...more