However, they will make you sign a contract stating that you (as the leaseholder) will be completely responsible for reimbursement in the event that any damages occur to the vehicle. In other words, you need to get exceptional insurance to cover your leased car. The most common type of coverage for leaseholders to purchase is called GAP car insurance coverage (Read: “What is gap car insurance?” for more information). A gap insurance policy pays for the unpaid balance on your lease if your vehicle is totaled. Without it, you would be responsible for paying a large sum of money out of pocket to replace the car.

Why would a leased car cost more money to insure than a fully owned vehicle?

The reason that leased cars (on average) cost more money to insure is because they are new. Since most people take out leases on new cars, the value of the vehicle is higher than a used or older car. Additionally, in order to protect yourself from having to pay for damages to your leased vehicle, you will want to get the most thorough insurance coverage possible.

Examples of some recommended coverage to purchase for a leased vehicle include:

1. Gap insurance – Protection so that you don’t end up paying the full unpaid lease balance if your vehicle is totaled.
2. Comprehensive insurance – Covers any damages resulting from events other than collision.
3. Collision insurance – Coverage for any damages to your leased car as a result of a collision.
4. PLPD insurance – Public liability and property damage are always required in the United States; each state has different minimum requirements.

Is it better to lease a car instead of buying new?

Most people wonder whether leasing a car is a better idea in comparison to buying a new one. In regards to saving money on insurance, it is usually a better idea to go with a new one – if “insurance” is the deciding factor. However, there are a lot of advantages and disadvantages that you will want to take into consideration before making a decision one way or the other. For example, lease terms can last less than 3 years, making the thought of driving a new vehicle every few years very appealing.

However, if you do buy a vehicle new, you will not have to purchase gap coverage to go along with it – saving you money on insurance. Additionally, if you pick out a safe car to insure, the cost of your insurance will go down as your vehicle ages. If you have been driving it for 5 years, the value depreciates, and your car insurance rates may actually decline – which some people really like.

Always check the available insurance options

If you really want to figure out what your best options for saving money are in regards to leased vs. new cars, you should get a quote for each. To get a quote, just type in your zip code at the top of the page and see which companies are offering great rates in your area. After you have followed through and checked out their quotes, you can compare the pricing for a new vehicle vs. one that would be leased. Whether you decide to ride around in a leased car or new car, make sure you make it a priority to get a top-notch insurance policy!

Why you may comprehensive insurance coverage for new car scratches

Comprehensive auto insurance will benefit those who wish to have the most coverage on their vehicle; covering even the smallest paint scratch. Actually comprehensive car insurance covers almost any damage to the car besides car collisions. This includes having your car stolen, damage caused by severe weather and other non-collision type damages. Clearly the benefits of signing up for comprehensive car insurance policies are excellent.

Paying the initial customary claim plus the deductible

Some companies require a customary five hundred dollar deductable after the first car insurance claim. What this means is that if your windshield gets hit by a rock on a highway, you may have to pay a specific amount initially to get it repaired. The actual windshield might cost less than what you end up paying for your initial claim payment, but in order to make a first claim; you need to pay a deductible. The deductible amount is normally around five hundred dollars which may seem steep at first, but once you have paid up, you don’t have to go through the process again. The extra money goes towards your policy anyways, so you don’t end up paying extra for no reason.

Once the deductable is paid; you will have a certain amount of claims available for free depending on the insurance company policy. Scratches on new cars will be fixed at no cost to drivers with a comprehensive cover. Clearly if you have ever gotten your vehicle scratched, keyed, or had to deal with paint damage, you would benefit from comprehensive vehicle insurance. Having the side of your vehicle scratched can be very annoying to deal with and even more frustrating if you don’t have the right insurance to cover for the damages.

Besides paint scratches on my new car, how else is comprehensive insurance beneficial?

There are definitely other cases though when comprehensive automobile insurance is beneficial to have. For example, if your vehicle gets stolen and you don’t have comprehensive insurance, you will likely end up with zero reimbursement for the theft. On the other hand, if you happen to have a comprehensive policy, you will generally get reimbursed for roughly the full estimated value of your vehicle. Depending on your insurance company and level of coverage that you purchased, they may even pay more than what you expected.

Determining whether your car is worthy of a comprehensive policy

It is typically advised to decide if your car is worthy of a comprehensive insurance policy. Some cars are clearly old, used, beat up, and don’t need comprehensive coverage for paint scratches. However, if you want insurance for new car scratches, you know that having a fully comprehensive policy will be helpful in picking up expenses to get your vehicle fixed.

Why you should buy comprehensive insurance

Not purchasing comprehensive car insurance for an expensive car could be devastating if significant damage is done from an area other than collision. If you currently drive a new car, then you should really consider getting a comprehensive cover. It will be more than worth it if your vehicle would get stolen, catch fire, or even get a simple paint scratch. It would be wise to think it over and really decide if the car you own is worth the extra benefits provided by comprehensive coverage.

Fixing paint scratches isn’t very complicated

If you already are dealing with a paint scratch and have adequate coverage, you should bring your car to a garage prior to filing a claim so that you can get a reliable estimate for the damages. Then contact your insurance company and get things fixed up. For individuals without comprehensive coverage, realize that it can be a great addition to your policy. On the other hand, it can be a wasted expense if your vehicle isn’t worth very much. Is your car worth it or would you rather go without it?

The Big Problem: Standard Car Insurance can be Limiting

Unfortunately, standard automobile insurance policies do not cover all expenses sustained during accidents. Even though standard insurance policies would cover the damage sustained by other parties during accidents, drivers with standard insurance policies will probably not cover for vandalism, theft, weather damage (e.g. tornado damage, hail damage, etc.), “Acts of God,” or animal damage. All of these are covered by comprehensive car insurance policies, which will require an upgrade if you are a standard policyholder.

If drivers find their cars damaged by criminals or hurricanes, their standard car insurance policies do not give them coverage. Damage sustained by accidental collisions with animals is also excluded from standard policies. As such, particularly for individuals living in high traffic areas where chance of theft and alternative damage is common, it may not be wise to drive your car without a comprehensive policy. One simple paint scratch can even cost a lot of money to repair and may not be picked up under standard policies.

How animals can damage your vehicle

Car accidents involving animals are extremely unfortunate. No one wants to drive down a highway and collide with an animal; it is a truly tragic event and can be traumatizing in some cases. Animals can cause significant amounts of damage to your vehicle when they hit your vehicle at high speeds. Examples of some animals that people often hit include: deer, coyotes, and moose. Obviously the animals you regularly see while driving will differ depending on your location, but the fact is that people do hit them.

Drivers without comprehensive auto insurance policies are fully responsible for repairs caused by animals. In other words, if you don’t have a comprehensive insurance plan, all of the payment will be out of your own pocket. Nonetheless, these scenarios are more than simply matters of money and the costs of the damages. Animal impacts can be traumatic for all parties involved, and for individuals stuck without comprehensive insurance policies, the damage can become even more significant.

Cases when animals may damage your car

If a person is driving down an empty highway and a deer wanders out into the road too soon for the driver to stop, the car is very likely to suffer severe damage. Deer are heavy animals and when a car strikes one at 65 miles per hour, not only will the animal end up hurt, but the car will also sustain damage based on the sheer weight of the animal. Chances are high that the front bumper will dent, headlights will break, the hood will warp, and the windshield will shatter.

Other than collision or “OTC” events

When this happens, the driver will be held liable for the damages if the driver receives coverage from a standard policy. This is because damage sustained by anything other than what the insurance company deems a collision is considered an Other Than Collision event, or an OTC event. OTC events include several circumstances including acts of God, theft, fire damage, and animal impacts. For this reason, a driver will enjoy the benefits of greater protection and coverage under a comprehensive insurance policy that covers OTC occurrences.

Animal damage may happen when your car is parked

OTC occurrences involving animals may also occur when cars are stationary. For instance, if a family takes a car out to the wilderness for a camping trip and a bear inflicts damage on the car in a search for food, this is considered OTC, not a collision. Because insurance companies do not consider incidents involving stationary cars as collisions, standard insurance policies and basic collision coverage plans do not cover this kind of damage. Only comprehensive car insurance policies will cover damage inflicted by animals on vehicles not in motion.

Swerving because of an animal vs. actually hitting an animal

While it may sound simple, auto insurance policies that cover animal damage can become more complicated. For instance, if a driver receives coverage by comprehensive insurance and accidentally strikes an animal, the driver will receive coverage only from a car insurance claim that is comprehensive. However, if an animal causes the driver to swerve out of control and hit a post, building, or guard rail, the insurance company will consider the incident a collision and as such, the driver will receive coverage from a collision claim.

Do you have enough coverage to protect yourself from animal damage?

Different factors affect the outcome of different animal damage claims. Some individuals shy away from comprehensive coverage because of the cost, but depending on the value of the cars they drive and the likelihood of run-ins with animals in their communities, paying a little extra for comprehensive coverage and dishing out a deductible will not add up to even half the cost of a new car. Therefore, it is important for individuals to know exactly what kind of coverage their respective insurance policies offer, providing security for drivers in the event of car accidents with animals.