Leasing a car can often seem enticing due to their generally lower monthly payments and the ability to drive a new car every few years. What you may not have considered however, is how much auto insurance for a leased car will cost you.
When you lease a car, you are required to purchase what is commonly known as “full” auto insurance coverage which includes both collision and comprehensive coverage. Collision coverage pays for repairs to the leased vehicle if you were involved in an accident with another vehicle or an object. Comprehensive coverage pays for repairs to the leased vehicle if it was damaged by something other than an accident, like a falling tree limb, or if it was stolen or vandalized.
With a lease, the dealership may also require you to have higher limits on your insurance coverage as well as a lower deductible. Gap insurance, which pays off your lease in case of total loss, is many times also required and is often included in your lease payment.
When you buy a car, the only insurance coverage you are legally required to have in Florida is $10,000 personal injury protection and $10,000 property damage liability. Of course, it is always best to have additional coverage like bodily injury liability, and gap insurance if you are making payments on your car.
When deciding whether to lease or purchase a car, don’t forget to factor in the potentially higher insurance costs.
For help finding a competitive auto insurance rate, contact a Preferred Link agent today.