Auto Insurance and Leasing

When leasing a automobile, it’s simpler to stick with the same company for your auto insurance. What you don’t know, however, is that you may finish up paying much for your coverage & it’s better to look elsewhere for lower rates.
When you lease, the vehicle that you will drive belongs to the leasing company. They need to make sure that their investment is covered in the event the vehicle gets damaged, totalled or stolen. They usually need to get covered for the difference between what your auto-insurer pays & your outstanding leasing obligations at the time of the accident or destroy. This is called GAP, short for Guaranteed Auto Protection, & 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. You are under no obligation to accept GAP insurance included as part of your lease agreement. Why pay an insurance premium in the event you could get the
same coverage for a lower cost? Invest some time shopping by comparing quotes from other insurance companies, including your existing one. Ask for discounts that you already qualify for & adjust your coverage accordingly.