Cheap Leased Car Insurance
April 13th, 2009
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.
Entry Filed under: Car lease explained