You have leased a car, but how do you insure it? It might be easier to stick with the same insurance company that you use for the car you own, but it may not always be the most cost effective choice for your coverage. Sometimes it may be best to look at other companies and see if you can find lower rates.
Leased cars are a little different from cars you personally own. A leased vehicle still belongs to the leasing company. They want to make sure their car will be covered in the case of damaged, totaled or stolen. Usually, coverage is required to pay for the difference between what your insurance company pays and the balance on your leased vehicle at the time of the accident or damage. The insurance coverage that covers this difference is called GAP Insurance, Guaranteed Auto Protection, and covers any remaining amount between what the insurance covers and what remains on the balance of the car. If your leasing company is BMW Financial Services, Chrysler Financial or any other finance division of an automaker, then it is possible your GAP insurance will be offered by the same lease company.
However, you have no obligation to accept the GAP insurance that is included in your lease agreement. By shopping around with different insurance companies, you may find equal coverage for a cheaper rate. Invest some time by shopping around between different insurance companies, including the insurance company you have used for cars you own. But, always be sure that your leased vehicle is completely covered in case of an accident. The best coverage is the one that fully covers you.
If you have questions about insurance for your leased vehicle and Los Angeles car insurance, visit the website of True Rate Insurance or call us at 855-735-1600. When you are looking for something as vital as insurance, you want a company like True Rate that you can count on to help you build the right plan at the best possible price.