Car insurance when leasing or renting

Some people prefer to lease a car instead of buying one. This is a smart choice from many points of vie, but what`s happening with the car insurance? You will definitely not escape from paying the premiums. Most car dealers make mandatory the purchasing of comprehensive and collision coverage insurance, in order to be able to claim the entire value of the vehicle in case of undesired incidents.
In some states, you will be forced to pay for additional coverage, according to the low. One of them is auto liability insurance which means ensuring your car for damage produced by other car, by natural disaster or by other factors that you can not control.

auto insurance companies - Car insurance when leasing or rentingIn other states you have to pay for gap insurance which covers the total remaining loan for your car until the car becomes yours. The dealers are explaining the gap insurance through the difference between the percent of the car that they still own and the value that they can claim from auto insurance companies. Usually, the gap insurance is included in the monthly lease payment and is mandatory until you pay for the last rate.

You will need also car insurance when you rent a car, even if you rent it for few hours. The insurance depends on the purpose of using the car, on weather, and on many other factors. If the collision and comprehensive insurance that apply to your rented car have deductibles, you will be covered by your own auto policy. If you do not own a car or your car insurance is not enough to cover the entire value of the rented car, most rent-a-car dealers provide two rental insurance options: non-owned auto liability insurance and rental car counter insurance.

auto insurance companies - Car insurance when leasing or rentingThe non-owned auto liability insurance is usually purchased by drivers who use the rental car for trips out of town, because it is available for a specific period of time. It is cheaper than buying rental car counter insurance every time you rent a car. This insurance covers the damage produced by you to other cars and injuries to pedestrians or passengers in case of accident. Most of them do not include collision coverage for renal car, so you have to buy one from the rent-a-car dealer.

Rental car counter insurance usually cost between $5 and $15 per day and it includes personal accident coverage and liability insurance. However, you will not be able to claim any dollar if you cause an accident while being drunk or speeding