As a leasing car owner, I am frequently asked, “Do you pay insurance on a leased car?” Cheapcarinsurance4you is, “No.” There are many reasons for this and they include both cost and safety. In this article I will detail these reasons as well as provide a quick example of how leasing can save you money and time. Hopefully you’ll find this information useful.
When you lease a car, the vehicle is under the control of the insurance company until you take delivery of it. At that point, the vehicle is under the control of the lessee (you). If there is ever a problem with the leased car, the insurance company will want the vehicle back in full and will attempt to do so at the earliest convenience. This is why it’s very important to make sure that you have appropriate insurance coverage for a leased car.
Many people make the mistake of assuming that the insurance for their vehicle will be transferrable to their new car dealership. Unfortunately, this is not true and insurance companies will not cover a vehicle that has been driven under a lease. It would be wise to take care of this issue before the end of your lease.
The next question often asked is, “Do you pay insurance on a leased car?” A common misconception is that you do have to lease a car and therefore, there is no coverage provided by the insurance company. This is simply untrue. You will receive a standard document that will explain in detail what coverage is available, including which company the coverage is thorough. Therefore, you will know whether or not you are covered when it comes time to renew your agreement or if you need to purchase full coverage insurance.
Another frequently asked question is, “do you pay insurance on a leased car?” The answer is no, you do not. As previously stated, you will not be covered through the insurance company when it comes time to purchase an automobile, but you will be fully covered when it comes time to insure the vehicle. For this reason, it is vital that you understand the ins and outs of leasing a car and taking care of it before agreeing to lease a car from a dealer.
Although many people believe they will be covered through the insurance company when it comes time for them to purchase the automobile, the fact of the matter is that the insurance premiums will be very high. If you have good credit, you may even qualify for a lower rate. However, if you have bad credit, you may end up paying more than you need to.
When you sign the paperwork required to lease a vehicle, you are actually entering into a contract. While there may be times that you do not feel like paying your monthly bill, it is in your best interest to do so at all times. If you do not pay your bill on time, the dealership can and will charge extra money. Not only will your monthly payment go up, but you may also have your vehicle repossessed. A repossession can cost you a lot of money and is not something that you want to get into.
Before signing any type of agreement, be sure that you understand everything that is included. Knowing what is covered and what is not will help to ensure that you do not become stuck with any unpleasant surprises once your lease period is up. There are many different types of leases, and most of them include basic coverage such as bodily injury and property damage. There are other types of coverage that you may wish to add in the lease agreement, such as towing or roadside assistance. Understanding the fine print of your lease contract is the only way to avoid these unwanted surprises.