Leased Automobile Insurance Texas TX
November 20th, 2008
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
Entry Filed under: Car lease explained, Lease car deals