Auto Insurance And Leasing

When leasing a car, it’s easier to stick with the same company for your auto insurance. What you don’t know, however, is that you may end up  paying too much for your coverage and it’s better to look elsewhere for  lower rates.

When you lease, the vehicle that you will drive belongs to the leasing  company. They want to make sure that their investment is covered in the  event the vehicle gets damaged, totalled or stolen. They typically want  to get covered for the difference between what your auto-insurer pays and your outstanding leasing obligations at the time of the accident or  damage. This is called GAP, short for Guaranteed Auto Protection, and is  usually included in the 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.