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Car Insurance While Leasing

While leasing a car, it is best to stay with the same insurance company for your car insurance. But there is always the chance, however, that you will end up over paying for your coverage. Therefore, it could be well worth a look elsewhere to see if you can get a better deal.

When leasing, the car that you will drive belongs to the lease company. They’ll want to be sure that their investment be well covered in the event their automobile gets smashed, totaled or stolen. They normally want to be insured for the difference between what your car-insurer allows and your remaining leasing contract at the time of the accident or damage. This is known as GAP, acronym for Guaranteed Auto Protection, and is typically built-in to the leasing contract.

Whether you use someone like BMW Financial Services, Chrysler Financial or any other finance division of the automotive industry as your leasing company, then odds are your GAP insurance will be made available by the same lease company.

You are not required to take the GAP insurance offered as part of your lease agreement. Why pay more for your insurance if you could get the same coverage elsewhere for a better price?

Spend some time comparing quotes from other car insurance companies, including your existing one. As an existing customer you may qualify for some discounts, then amend your car insurance coverage accordingly.