What You Should Know About Insurance and Leased Cars

What You Should Know About Insurance and Leased Cars

There are some people that are choosing to lease their car instead of purchasing it, but how do these people go about insuring the leased car?

If you lease a car, you are still legally required to insure it with an auto insurance policy. The auto dealer or bank that is financing your car will require you to purchase auto insurance, so whether or not you will have a policy is not in question, but what kind of coverage should you get to best match your needs?

  • Comprehensive Coverage – This coverage provides financial aid to a loss that is caused by something other than a traffic collision. It covers accidents with other objects like a tree branch, deer, theft, missile, meteorite, etc.
  • Collision Coverage – This policy will cover the damage to the car from another automobile.

Your leasing company could require you to purchase “gap” insurance. Gap insurance covers the difference between the total cost of the car you still have to pay off and your insurance check. For example, let’s say you lease a 0-carbon emission Tesla Model X for you and the family. These are expensive cars and you will have to pay back that money plus interest.

Your coverage is dependent on the market value of your car, and if you crash it, there will likely be a difference that you have to pay. Gap insurance takes care of that balance so you have nothing to worry about.

Gap insurance is something that is typically included with the final cost of your contract, so you should not actually have to buy life insurance.

Protect your car during every season with a good auto insurance policy. Contact Risk Management LLC in Brookfield, Wisconsin for all of your auto insurance needs. We are here to help you get the coverage you need at the rates you deserve.

  • Risk Management assisted me in determining the best insurance coverage to match my business’ risks. Not only did their professional staff spend ample time meeting with me to understand my business, but they continue to follow up with a phone call on a regular basis. I’d consider each of the members on the Risk Management team a true asset in my corner, as they assist to resolve complex insurance issues including GL, Med-pay, business interruption, unemployment insurance, and most importantly, claims management. Their ongoing research in the insurance industry allows my rates and coverage’s to be best in in class, which helps me to remain competitive in my industry.

    -Steve, S. former owner of Helium Trampoline Park

  • “When we want develop partnerships with vendors, the deciding factor is always based on a single question…Do they pick up their phone? At Risk Management, they pick up their phone. In the indoor trampoline park industry, we have dealt with several insurance agencies that were always more concerned about their commission, not building a business relationship or serving our needs. On more than one occasion, Risk Management has stepped in and helped us with carrier/policies issues that the incumbent agencies had dropped the ball on. There was no financial reward for Risk Management in these situations, they see a problem and help fix it. They just do business the right way. Steve Young and his team at Risk Management represent us, not the carrier. We highly recommend Risk Management.”

    -Mark M. Operations Manager,CEO Fun Palace Place

Address: 21420 W. Greenfield Ave Ste 100
New Berlin, WI 53146
(262) 785-8930
Toll Free: (888) 857-5144
Fax: 1 (800) 424-3955
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