Comprehensive Auto Insurance – Important Facts
Reader’s Question:
I was advised to buy a comprehensive auto insurance policy by my friend since I need to insure a vehicle I’m leasing. What is a comprehensive auto insurance policy and how does that work?
Suzy
Lincoln, NE
Good question. Comprehensive auto insurance is a type of car insurance that covers for damages or loss incurred by your vehicle due to factors that are not related to an auto accident or collision. The aim of this type of coverage is to restore/protect the financial value of your vehicle in the event of the following circumstances:
” Fire
” Theft
” Vandalism
” Natural Disasters
” Covers for damages to other vehicles you may be driving (limited)
It is true that most lenders would require you to purchase this type of coverage under your auto insurance in order to protect the value of the leased car. However, I believe you may benefit more from purchasing gap insurance instead. Gap insurance is a type of coverage that will pretty much pay for the remaining amount of money you owe on a leased vehicle should it get totaled.
Gap insurance can save you from being “underwater” – or owing money on a vehicle that is no longer there. So you should check that out as well. I also recommend that you use online auto insurance comparison websites. These websites increase your chances of finding affordable auto insurance coverage for the vehicle you’re leasing. They can offer quick and instant rate quotes coming from many different providers in your area. Best of all you can get all that information absolutely free.
comprehensive auto insurance