Auto Insurance and Leasing Tips

accident insurance coverage

When leasing a car, it’s easier to stick with the same company for your Colorado auto insurance. What you don’t know, however, is that you may end up paying too much for your coverage and it’s better to look elsewhere for lower rates.

When you lease, the vehicle that you will drive belongs to the leasing company. They want to make sure that their investment is covered in the event the vehicle gets damaged, totalled or stolen. They typically want to get covered for the difference between what your auto-insurer pays and your outstanding leasing obligations at the time of the accident or damage. This is called GAP, short for Guaranteed Auto Protection, and is usually included in the leasing contract. If your leasing company is called BMW Financial Services, Chrysler Financial or any other finance division of an automaker, then chances are your GAP insurance will be offered by the same lease company.   

You are under no obligation to accept GAP insurance included as part of your lease agreement. Why pay an insurance premium if you could get the same coverage for a lower price? Invest some time shopping by comparing quotes from other insurance companies, including your existing one. Ask for discounts that you already qualify for and adjust your coverage accordingly.

You will definetely need auto insurance if you own a vehicle, it's that simple.  Before you buy auto insurance, here are some things you simply must know:

-  Not all insurance companies cover everyone who operates the vehicle.  This is something you should always ask about, find out who is covered when operating the car.  There are several companies that will only cover the owner of the car.  Make sure that the insurance agent defines who is covered when operating the car.

-  When you shop for auto insurance, call your current company first, then check with other companies to see what type of rates they offer as well.  Always remember that insurance agencies are in competition with each other, and they'll work with you to get you to join them.  Let one know about a better rate that you've been quoted and see if they'll go one better.

Before you shop for auto insurance, think about the investment you have made with your automobile. Cars are not cheap, replacing or repairing them isn't cheap either.  Therefore, you should always make sure you get the Colorado auto insurance coverage you need to protect you against anything that happens with your vehicle.