Leasing a car is becoming more and more popular among everyday folks, but when it comes to auto insurance in Banning and your leased car, what policies should go along with it?
You lease a car, you are still legally required to own auto insurance in Banning. In fact, the auto dealer or banker that is financing that car, will likely not give you the loan unless you can insure it. The most popular policies that leased car owners all but have to obtain is collision and comprehensive coverage. In addition to these two, you must also purchase any policies that are
mandatory in your state.
- Collision covers the damage to the car that came from a collision (hence the name) with another automobile or object.
- Comprehensive covers the damage to the car that did not come from a collision with another car. Damage from things like vandalism, theft, fire, missile, etc.
- Gap insurance covers the difference between what you owe the leaser and the check your insurance mailed you. There is a monetary difference because auto insurance only covers the market value of your car at the time your accident occurred. And as soon as you drive your car off the lot it depreciates in value, and the more miles you add and more wear and tear to which it is exposed, the value keeps dropping.
You still, however, need to pay the leasing company its money and this is where gap insurance steps in to cover that difference (up to a limit).
The only way to be financially protected is by having the right
auto insurance in Banning. You need a policy that will work to keep you safe whenever you are behind the wheel of your vehicle.
Contact the independent insurance professionals at Little & Sons Insurance Services for all of your car insurance needs in Banning, Beaumont, Calimesa, and surrounding California areas. We will work with you to find the coverage you deserve, all at the right price to fit your budget.
