Cheap Lease Car Insurance
Do you need to find cheap rates on auto insurance for a lease car? Look, listen to this guy and what he suggests on how to easily and quickly lower your car insurance rates even for lease cars.
July 20th, 2010
Leased Car Insurance Question
Reader’s Question:
My sister has a leased vehicle. I woul like to know what is the required minimum liability on that car. We live in Texas.
John
Houston TX
In Texas the minimum liability insurance is $25,000 for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage. This basic coverage is referred to as 25/50/25.
Since your sister has a leased car she will be required to purchase more insurance than what the Texas requires. She may be required to get the physical damage coverage. Physical damage coverage consists of collision and comprehensive coverage. Usually, collision insurance covers damage to your car caused by collision with another car or object. Comprehensive insurance covers damage to your car from vandalism, theft or glass breakage. Most lien holders require physical damage coverage if you are leasing your car.
If your sister is leasing a car she will need to insure it. You may ask the lien holder to know if she is required to obtain the physical damage coverage of collision and comprehensive on the car.
June 2nd, 2009
Cheap Leased Car Insurance
Readers Question:
I will be staying in Texas for a few years and I want to lease a car. Should I get insurance? If yes, what should I expect?
Tiffany
Bridgeport TX
Here is one thing to bear in mind: whether owning or leasing a car in Texas, it is better to have it insured. Remember, any kind of insurance can help you pay for the expenses that can happen in a worst-case scenario accident. If you dont have it, you will end up paying for the damages and medical expenses out of your pocket. If youre always broke, then in a worse-case scenario, your assets will be at risk.
I know there are questions on what kind of insurance to get. There are tons of cheap leased car auto insurance available out there. It is just a matter of shopping for them before signing a deal.
However, it is also important to know the different kinds of auto insurance. Leasing cars have their own requirements in terms of the minimum coverage. In most cases, liability coverage should be $100,000 per person or $300,000 maximum coverage per incident. There should also be $50,000 property damage liability, as well as, comprehensive and collision for actual value with no more than $500.
Bear in mind that insurance for leases are more expensive compared to owning one. This is because you dont own the car. The leasing companies own them. Expect that they will be demanding in terms of the requirements, simply because they also want to ensure that their investment is protected at all times. Therefore, if you compare the values above, it is relatively higher from Texass standard auto insurance coverage.
In most cases, it would be better to get full auto insurance. This can cover everything mentioned above including GAP insurance.
To get cheap leased car auto insurance, check with your provider. In some cases, people with great credit standings have better rates. Who knows, you might be qualified for discounted rates.
April 13th, 2009
Leased Automobile Insurance Texas TX
Reader’s Question:
I don’t own a car. What if I lease a car? Will I still need auto insurance?
Frances
Austin, TX
Leasing is fast catching up. A lot of people are into it. It is the advisable thing to do if you want lower monthly payments, a new car every couple of years and the benefits that go with a new car, like the latest safety features and high-tech automobile gadgets.
However, even if you don’t own a car and you go ahead and just lease one, you would still need to have auto insurance. It’s not legal to drive around the state of Texas without auto insurance coverage. You can not legally drive around Austin, TX, without insurance. Besides, the auto dealer or bank that will be financing the car lease will require you to have collision and comprehensive coverage. Collision insurance coverage takes care of the damages to your car if you collide with another car or object. Comprehensive insurance, on the other hand, pays for the damages to your vehicle caused by anything other than collision. This would include vandalism, natural disasters and even theft. You have to understand that when you lease, the car belongs to the company. They would want to make sure that their property will be properly covered and taken care of while you’re using it. You need to have these policies required by the car company and also liability insurance as this is required by the state.
Tags: auto insurance, car insurance, leased car insurance
November 20th, 2008
Collision And Comprehensive Coverage For Your Leased Car
Reader’s Question:
I have a leased car in Texas and I would like to know what is the minimum liability auto insurance that is required for leased vehicles.
Pat
Houston TX
Since you are leasing a vehicle you will be be required to buy more insurance than what your state mandates. They will likely require that you get the physical damage coverage of collision and comprehensive coverage. Generally, collision insurance coverage covers damage to your vehicle caused by collision with another car or object. Comprehensive insurance on the other hand covers damage to your car from vandalism, glass breakage or theft. Most leasing company require physical damage coverage if you are leasing your automobile. You may also be required to carry a large limits of bodily injury liability and large limits of property damage liability.
Add comment November 19th, 2008
Leased Vehicle Insurance Question
Reader’s Question:
My father and I just leased a vehicle. The problem is that I have a revoked drivers license and the dealership wants to exclude me and the auto insurance company will not exclude me. Can you tell me what to do?
Brian
Dallas TX
Most car insurance providers will not exclude you if the policy is under your name – meaning you are the named insured. The auto insurance policy will probably need to be in your father’s name – if they exclude you to the auto insurance policy. However, you will not going be covered to operate the automobile if you will be excluded to the car insurance policy. I suggest that you get your drivers license restored as soon as possible. Even though the dealership would want you to be excluded, you will have to verify with the car company to be certain it is ok for you to be excluded.
November 19th, 2008
Who pays for auto insurance for the leased car?
Reader’s Question:
Does lease company pay for auto insurance of the leased automobile?
Amanda
Los Angeles CA
I do not think so. What I know is that you are still responsible obtaining car insurance on the leased car. It is true that the lease car company technically owns the vehicle but normally if you check the leasing documents not only you will be required to have the minimum liability insurance in your state but you will also be required the collision and comprehensive car insurance coverage.
If you fail to maintain the required car insurance on the vehicle that you are leasing and the car company finds out, what could happen is that they will take out forced auto insurance on the leased car and will be charged to you. I heard that it is more expensive that way.
When the car insurance company or the financial institute that owns the vehicle gets the “forced” auto insurance for you, the car insurance premiums will be costly than if you bought the leased car insurance yourself. This car insurance typically provides protection to lessor, not to you, for their interest in the automobile.
November 19th, 2008
My Car Is Worth Nothing After My Lease is Up
Reader Question
I was leasing a new Ford Mustang for 2 years, but now they say the price of the Mustang is soo low that I lost value, or something like that….I think he said its residual value was lower than market value? Help…I think I am getting screwed on this car lease “deal”.
Anne,
Houston, TX
Example 1 Residual Value: What the vehicle will be worth at the end of the lease. It may or may not match true estimates of the used car value at that point. Residuals are determined by lenders. You are unlikely to be able to negotiate residual value, but you can comparison shop for the highest available.
Example 2 Residual Value: The value of the means of transportation at the finish of the lease. Now, let us work out a sample rent imbursement based on a vehicle with an MSRP (sticky label price) worth of $25,000 and a currency factor of 0.0034 (this is usually quoted as 3.4%). So this is how it will look to you
The scheduled lease is over three years and the predictable outstanding proportion is fifty-five.
The first step is to compute the left over value of the car. You reproduce the MSRP by the outstanding proportion:
That is $20,000 X .55 = $11,000.
The vehicle will be significance $13,750 at the closing stages of the lease, so you will be by means of:
That is $20,000 – $11,000 = $9,000
This quantity of $9,000 will be use over a 36 month lease epoch giving us aMonthly payment of:
That is $9,000 / 36 = $250.
best of luck to you, you really can not negociate the lease AFTER the lease is up…..but you might be able to find a sucker to buy the vehicle from you for more than the residual price…..maybe post it on Craigslist.com?
July 31st, 2008
Should I Lease My Car From The Car Dealership Or A Bank?
Reader Question
I want to lease a new Toyota Prius…..damn gas prices are out of sight! The dealership wants to charge me a bunch of smaller “Fees” in addition to the lease fee, what should I do….go to a bank for a lease?
Tom,
Detroit, MI
Dealerships value your business and are ready to negotiate. Mention important options before you seal the deal. Dealers know that some people like to swap cars often and want the flexibility to get out of a particular car when they choose.
What the dealer doesn’t tell you is that leasing is designed in a way that makes it both difficult and expensive to terminate before the normal end date. Dealers also try to sell you on leases by doing a comparison between the payments for a lease and the payments for the same car on a conventional loan. Invariably, the comparisons show the lease payment to be the winner. Most banks will not offer a car lease, but there are a few aftermarket companies that will…so shop around.
July 31st, 2008