Benefits of Car Lease Insurance

Car lease insurance is extremely important to consider if you are thinking about leasing a car. Although the monthly lease rate for the car can be extremely attractive, the requirements for car lease insurance are usually high when compared to purchasing a car. However, when looking at options for car lease insurance, there are several benefits.

Increased Coverage

One of the advantages of car lease insurance is that it requires higher than normal coverage and minimum deductible amounts. While this can initially seem like a disadvantage in increased costs, it can turn to a substantial advantage if you find yourself needing the coverage because of an accident or damage to the car.

Should you need to make a claim, with lower deductible amounts, out of pocket expenses are lower. Instead of having a deductible of $1,000, the required deductible may be $100 or $0.

Additionally, with increased coverage come additional benefits like a rental car if your lease car needs to be repaired.

Gap Coverage

Probably one of the most beneficial aspects of car lease insurance is the requirement for gap coverage. Gap coverage comes into play if the lease car is in an accident and is totaled. Gap coverage provides insurance for the gap between the lease amount and the value of the car at the time when it is destroyed. Without gap insurance, the leaser would be held financially liable for the value of the car, regardless of the condition of the car. Although gap insurance may increase the cost of car insurance, having it will help out a person leasing a car inordinately should the car be totaled.