Insurance for Leased or Financed Vehicles
These days, it is extremely common for individuals to lease their vehicles or borrow funds to pay for their automobile purchases. Because the leasee or borrower is still responsible for making payments on the vehicle, his or her lender may require that he or she carry certain types of insurance coverage to protect against collisions or other damage.
The lender or leasing company may also require that the borrower maintain certain amounts of coverage to fully protect the vehicle in case it is seriously damaged in an accident, stolen, or vandalized. For more information on insurance coverage requirements, contact the Chicago insurance agents of Insure on the Spot at 773-202-5060.
Leasing and Financing
Financing and leasing companies may require that drivers establish:
- Collision coverage
- Comprehension coverage
- Liability coverage (usually more than the state-required limits)
If you do not own your vehicle outright, it is recommended that you establish extensive insurance coverage to protect your car, truck, or motorcycle against damage and vandalism. It is wise to check with your lender to find out their specific insurance requirements before you purchase the vehicle.
Regardless of lender requirements, it is recommended that individuals carry sufficient insurance to protect themselves, their passengers, and their property. Inadequate insurance coverage may result in high costs to the driver and unrepaired damage to your automobile.
For a free, no obligation, no hassle auto insurance quote, contact the Chicago insurance agents of Insure on the Spot at 773-202-5060.