How to Insure a Leased Car Affordably
Leased vehicles need full coverage. It is common for the leasing company to require comprehensive coverage on these cars. This can increase the premium costs to you. However, this type of auto insurance minimizes their risks. It also helps protect you in the case of an accident. Does that mean you have to spend a lot of money? There could be ways to save money when insuring a leased car. Here are some tips!
Know What the Requirements Are
Speak to your auto insurance agent and the leasing agent to clarify this information. What is most important is protecting the value of the car. There are not benefits to insuring a vehicle for over its current worth, in most cases. Be sure you are purchasing just enough coverage based on the value.
Nearly all leasing companies will require drivers to have collision insurance and comprehensive auto insurance. You must meet at least the minimum requirement for liability insurance in your state. However, it may be best to increase liability insurance levels to match your area’s risk levels. Your agent can help you.
Increase Your Deductible
One way to reduce your cost is to increase the deductible on the policy. Never raise it to a level that is too expensive for you to pay out-of-pocket should an accident occur. However, you should choose a deductible that is as high as you can afford. Raising it, for example, from $500 up to $1,500 could significantly reduce your costs. If you are a safe driver, this helps.
Keep Your Driving Record Clear
You could save a significant amount of money simply by being a safe driver. Insurance companies base costs, in part, on how much risk you present to the company. A driver with numerous previous claims from accidents is going to pay more. This applies to leased vehicles, too. The more risk you are, the higher those premiums are. If your record improves, be sure to let the agent know.
You can also reduce your costs for auto insurance on a leased vehicle by adding more security to the car. This may include a GPS tracker or a security system. If the vehicle does not have these features, work with the leasing company to install them. Safety features like this save you money and protect their investment.
Talk to your car insurance agent. Find out what savings options apply to you.