When you are leasing a vehicle rather than buying it there are several things to keep in mind. Typically insurers require higher levels of coverage than you might otherwise buy. They want $100,000/$300,000 for bodily injury liability coverage and $50,000 for property damage liability. For collision and comprehensive coverage, it needs to be based on actual value and have deductibles of $500 or less. In Canada, leasing companies require $1,000,000 in liability coverage. These levels of insurance may seem like an added expense to leasing.
Why Do Lease Companies Require So Much Auto Insurance Coverage
The vehicle you are leasing actually belongs to company you leased it from. By requiring you to carry at least certain levels of coverage, they can protect their vehicle. If damage or destruction occurs they need to be able to get back their investment. They also want their own liability protected as much as possible. It is intelligent to carry adequate insurance, because in the case of a serious accident, if your insurance did not cover all the expenses, you would be personally liable.
Minimizing The Cost of Auto Insurance
In reality, most people who have car insurance are paying more for it than they need to. This is because they don't shop around for prices at each renewal. Staying with the same company blindly is a bad idea for your pocketbook. Insurance rates fluctuate greatly from year to year. The best insurer one year may be far from the best another year. So shop around and ask for discounts. You might even find extra coverage at the same or better price.
Discounts are key to anyone looking for a good deal on car insurance. However, they fluctuate greatly from company to company. Some of the things that may earn you a discount on your car insurance include:
- Higher deductibles
- 3 years of accident-free, citation-free driving
- Long-standing customer
- Safety features like daytime running lights, air bags, anti-lock brakes, etc.
- Completion of driver training courses
- Having multiple cars
- Having more than 1 type of insurance with the same company
- Good students
- Low mileage use annually
- Good credit
- Anti-theft device
- College students living away from home
Despite all these discounts you may still get a better rate from a company that offers fewer discounts. Rates are what matters. Remember that rates are in part determined by the type of vehicle you drive. Therefore choosing a vehicle that is cheap to insure is a good move. You should also shop around for coverage quotes.
What To Do When Looking For Auto Insurance Coverage
If you are in the market for car insurance remember that all companies differ and the only way to be sure you have the best price is by shopping around and comparing what is available. You should do so regularly, at least once a year. It used to be time consuming to shop around, but the internet has made it very easy and quick to comparison shop for insurance. In fact, using an online quote tool you can get multiple quotes at once in practically no time. The best part is the service is free and has no obligations.
If you are using our auto insurance quote tool, provide all the information requested in order to get the most accurate quote. Social insurance numbers are even requested but this is so they can check your credit score, a common factor in insurance rating. You can get a rating without certain information, but it is likely to be less accurate than with all the information.
To get started simply select our auto insurance quote tool and begin by putting in your information. In no time you'll have quotes to compare and contrast to find the best leased auto insurance available.