For some people, leasing a car can offer some distinct advantages. First and foremost, it comes with a much lower out of pocket expense. Additionally, the monthly payments on a lease tend to be lower than a traditional car loan payments. While you don’t get ownership of the vehicle, and you’ll have a cap on the miles you can drive, lease agreements do come with superior maintenance and warranty coverage.
Even still, a leased vehicle needs proper insurance coverage. The state of Ohio requires that any vehicle has $25,000 of coverage per person and $50,000 per accident for bodily injury and $25,000 for property damage. In addition to state requirements, your lease agreement will likely come with further requirements for your insurance coverage.
They may require you to have higher coverage limits than what the state requires. Since the vehicle is new, they will also likely require collision and comprehensive coverage. Finally, they may require gap insurance be included in your policy. The value of a brand-new car significantly decreases the moment it’s driven off the lot. Should the car be totaled, gap coverage will provide for the depreciated amount, ensuring the dealership recoups their losses.
The amount of coverage needed for any of these areas will vary depending on the make and model of the vehicle. If you’re looking into leasing a car, make sure you understand the full requirements for insurance.
Getting the Best Price on Leased Car Insurance
Though the dealership may encourage you to use a particular insurance provider, it’s in your best interest to utilize an insurance agent who will shop around for the best price. At Link Hellmuth, we work hard to make sure that our customers have the coverage they need at the best price available.
Technically speaking, leased car insurance isn’t more expensive than insurance for a car you own. However, due to the vehicle’s newness and the requirements of your dealership, you may be required to sign up for a more expensive policy than you otherwise would with your own vehicle. Nevertheless, we can help keep premiums down.
We work with all major insurance companies, and we’re experienced in covering a wide range of vehicles. For affordable auto insurance in Springfield, Ohio, contact us today!