Leasing a Car
Whether it is because they are living in a place for a short period of time, on vacation, or simply do not want to deal with the cost of a purchase, many people choose to lease vehicles. Although this is a helpful option for many people, it can also lead to complications with auto insurance. Anyone who is interested in leasing an automobile should understand the requirements of this arrangement so that they do not suffer a heavy financial loss in the event of an accident.
Leased Vehicle Insurance
It is important to note that leased vehicles do not typically come with auto insurance in the leasing agreement. This may be an option at the time you lease an automobile, but these plans do not always offer coverage at a reasonable price. Most people who choose to lease a vehicle will be required to purchase guaranteed auto protection, or GAP, insurance. This type of plan is designed to cover a leased vehicle and usually works together with standard insurance.
Gap insurance guarantees that the cost of the repairs or replacement will be covered in the event of an accident, even if a standard insurance plan does not cover 100% of the repair or replacement costs. Most individuals will be required to provide proof of this type of insurance before they will be allowed to lease a new vehicle.
If you or someone you know has questions regarding car insurance for leased vehicles, the experienced and knowledgeable Chicago insurance professionals of Insure on the Spot may be able to help. Contact our offices at 773-202-5060 for information regarding your options and the ways we can help you save money on auto insurance today.