Money Advice

If you are leasing a vehicle, it is easy to remain with the same company when you get your auto insurance. However, if you do this, you might not know that you are actually paying higher premium rates and can actually look for lower rates somewhere else.

Auto insurance & leasing

When you lease, the vehicle that you will drive belongs to the leasing company. They want to make sure that their investment is covered in the event the vehicle gets damaged, totaled or stolen.

They typically want to get covered for the difference between what your auto-insurer pays and your outstanding leasing obligations at the time of the accident or damage. This is called GAP, short for Guaranteed Auto Protection, and is usually included in the leasing contract.

If your leasing company is called BMW Financial Services, Chrysler Financial or any other finance division of an automaker, then chances are your GAP insurance will be offered by the same lease company.

However, you are not obligate to actually go for GAP insurance as part of your lease contract. Besides, you don’t have to pay for a higher price to get insurance coverage when you can get the same policy for a cheaper price.

Invest some time shopping by comparing quotes from other insurance companies, including your existing one. Ask for discounts that you already qualify for and adjust your coverage accordingly.

Article by: Van, find out more about him Here