Cheap Lease Car Insurance - Short Term Lease Car Insurance

If you are considering to lease a car with no down payment because it is cheaper than buying a car, you will have to buy lease car insurance coverage since the vehicle belongs to your leasing company but they do not provide any coverage for you. This is both a requirement by the law as well as the car lease financing company. They want to ensure that their vehicles are protected by insurance when you are renting it. They will also not be responsible for any liability compensation claims when you are at fault in causing a road accident. When you are considering to lease a car, you will have to take note of the costs for buying cheap lease car insurance as well in case your budget is tight.

This is not only for the lease company's protection, having adequate insurance cover on your leased vehicle will ensure that you do not have to pay for any damages in the event of a claim. This will apply even if you only have a short 1 year car lease agreement, so you will have to buy temporary or short term lease car insurance from any motor insurer in your state in order to drive legally on the roads.

Your car lease finance company will require you to buy both collision and comprehensive coverage for the lease vehicle. The first collision coverage refers to damages received by the lease car from an accident while comprehensive coverage will pay for any losses caused by other than a collision accident. The exact amount of liability lease car insurance to buy depends on your state, and you can check with the Department of Motor Vehicles (DMV).

Note that lease car insurance is generally more expensive than the liability car insurance you will buy for a personal vehicle, so your insurance rates are higher. You should compare with several motor insurance companies for free lease car insurance quotes before buying, and try to ask for all possible discounts if you have a tight budget. Even if your car lease finance company offers in-house leasing car insurance, you should still compare the quotes from other insurers to see if your expenses can be cheaper.

GAP Insurance For Lease Cars

Besides buying collision and comprehensive car insurance on a leased car, you still need to buy gap insurance. Since new cars depreciate in value very quickly, there will be a difference or gap between its fair market value and the remaining loan amount the moment you start the car lease agreement. This gap insurance covers the difference between the amount you still owe to the leasing company and the maximum amount paid by the insurance company in case the leased vehicle is totaled beyond economic repair.

However, payments for gap insurance for lease cars are usually rolled into your payments to the car lease finance lender, so you do not have to buy your own gap insurance policy. The leasing company have a single master policy that covers all their leased vehicles in case any of these are totaled during the lease period.

You can check your car lease contract for this small fee labeled "gap waiver" which is the amount rolled into your monthly car lease payments for the gap amount. Thus when the lease car is totaled in an accident, you do not have to worry about the shortfall from the compensation by your insurer.