Get the Most Out of Your Lease with Comprehensive Car Insurance
Leasing a car can be an appealing option for those who want the latest model without the commitment of ownership. However, as with any rental, there are risks involved. If you damage the car or it gets stolen, you could be on the hook for thousands of dollars in repairs or replacement costs. That’s where comprehensive car insurance comes in.
What is Comprehensive Car Insurance?
Comprehensive car insurance, as the name suggests, provides coverage for a wide range of events that can damage your vehicle, such as:
- Natural disasters (e.g. hail, flood, fire)
- Collision with an animal
- Broken glass
In addition to these types of events, comprehensive car insurance also covers some types of damage that may not be caused by an accident or theft, such as:
- Falling objects (e.g. a tree or branch)
- Acts of civil unrest (e.g. rioting)
- Damage caused by animals (e.g. a peckish deer)
It’s important to note that comprehensive car insurance does not typically cover damage caused by a collision with another vehicle. For that, you’ll need collision insurance.
Why You Need Comprehensive Car Insurance When Leasing
If you’re leasing a car, you’re not the owner of the vehicle – the leasing company is. This means that if the car is damaged or stolen, the leasing company is ultimately responsible for the repair or replacement costs. However, the leasing company will usually require you to have comprehensive insurance coverage on the vehicle.
In fact, most lease contracts will specify exactly what type of insurance you need and the minimum coverage amounts required. The reason for this is simple – the leasing company wants to make sure they are protected in case something happens to the car.
Without comprehensive insurance, you could be on the hook for the entire cost of repairing or replacing the vehicle if something happens to it. This could be a significant financial burden, as even minor repairs can quickly add up.
How to Choose the Right Comprehensive Car Insurance Policy
When it comes to choosing a comprehensive car insurance policy, there are a few key factors to consider:
The coverage limits on your insurance policy refer to the maximum amount the insurance company will pay out in the event of a claim. For example, if your policy has a coverage limit of $50,000 and the cost to repair your car after a covered event is $60,000, you would be responsible for the additional $10,000.
It’s important to choose coverage limits that are high enough to fully protect you in the event of a serious incident, but not so high that you’re paying for more coverage than you need. Your leasing company may have minimum coverage requirements that you’ll need to meet, so be sure to check your lease agreement before choosing a policy.
The deductible on your insurance policy is the amount you’ll need to pay out of pocket before your insurance coverage kicks in. For example, if your deductible is $500 and the cost to repair your car after a covered event is $5,000, you’ll need to pay $500 and your insurance company will pay the remaining $4,500.
Choosing a higher deductible will typically result in a lower monthly insurance premium, but it also means you’ll be responsible for paying more out of pocket if something happens to your vehicle. Conversely, choosing a lower deductible will result in a higher monthly premium, but you’ll have to pay less out of pocket if you need to make a claim.
It’s important to read the fine print of your insurance policy to understand what is and isn’t covered. Some policies may have exclusions for certain types of events or damages, which means that you won’t be covered if something happens that falls into those categories.
For example, some policies may exclude coverage for damage caused by natural disasters like earthquakes or tornadoes. If you live in an area where these types of events are common, you may want to look for a policy that specifically covers them.
Some insurance companies offer additional coverage options that you can add to your policy for an extra fee. These may include things like roadside assistance, rental car coverage, or glass repair.
Consider whether these add-ons are worth the extra cost for your individual needs. For example, if you have another car available to use while your leased vehicle is in the shop for repairs, you may not need rental car coverage.
How to Save Money on Comprehensive Car Insurance
Comprehensive car insurance can be expensive, but there are ways to reduce your costs:
Insurance rates can vary significantly from company to company, so it’s important to get quotes from multiple providers before choosing a policy. You may also be able to save money by bundling your car insurance with other types of insurance (e.g. home or life insurance) from the same provider.
Increase Your Deductible
As mentioned earlier, choosing a higher deductible can result in a lower monthly premium. If you have a good driving record and feel confident that you can cover the cost of your deductible if something happens to your vehicle, this may be a good option for you.
Take Advantage of Discounts
Many insurance companies offer discounts for things like:
- Good driving records
- Military service
- Membership in certain organizations (e.g. alumni associations)
- Safety features on your car (e.g. anti-lock brakes or airbags)
Be sure to ask your insurance provider about any discounts that you may be eligible for.
If you’re leasing a car, having comprehensive car insurance is essential. It will protect you from financial loss if your vehicle is stolen or damaged, and it’s also a requirement from most leasing companies. When choosing a policy, be sure to consider factors such as coverage limits, deductible, exclusions, and add-ons. And remember – shopping around, increasing your deductible, and taking advantage of discounts can all help you save money on your insurance premiums.