If you have a leased or financed car, car insurance is a must-have.
Not only is it legally required in most states, but car insurance can also save you from financial ruin if you’re ever in an accident or your car is stolen.
While there are many reasons to get car insurance for your leased or financed car, here are three of the most important ones.
You’re required to by law
No matter whether you’re leasing or financing a car, auto insurance is required by law.
This means that if you’re caught driving your car without insurance, you’ll be subject to fines and penalties.
In some states, you may even have your license revoked.
Even if you own the vehicle outright, you’re still legally required to carry the minimum amount of auto insurance required by your state.
When leasing or financing a car, it’s important to make sure that your policy meets all the requirements of your lender or lease agreement.
Your lender may also require you to carry additional coverage in order to protect their financial interests.
Be sure to speak with your lender to understand their exact requirements before purchasing a policy.
If you don’t have auto insurance when you sign your lease or finance contract, you should plan to purchase it soon after.
It’s important to keep in mind that failing to do so could put you at risk of having your contract voided and your vehicle repossessed.
Furthermore, having an auto insurance policy ensures that any damage caused to the car will be taken care of without costing you anything out of pocket.
If there is an accident involving an uninsured driver, auto insurance will pay for repairs on your vehicle instead of leaving you with an expensive bill.
Lastly, having auto insurance gives you peace of mind knowing that no matter what happens on the road, you’ll be taken care of financially.
It protects your car
When you lease or finance a car, you don’t actually own it.
This means that in the event of an accident, theft, or natural disaster, the damage to your vehicle isn’t covered under your auto insurance.
Even if you don’t make regular payments on your car loan, you still need auto insurance.
If you don’t have adequate insurance coverage and something happens to your vehicle, you are still responsible for the entire balance of your loan.
That’s why it’s so important to get the right auto insurance for your leased or financed car.
If you are involved in an accident and your car needs to be repaired or replaced, comprehensive and collision coverage pays for the repairs or replaces the car.
You can also get additional coverage such as rental reimbursement, gap insurance, and roadside assistance.
These extra coverages help provide financial protection in the event of an accident.
Having the right auto insurance is essential for any driver. It can help provide peace of mind knowing that you and your vehicle are protected.
Make sure you shop around and compare quotes to find the right insurance plan that fits your needs and budget.
It protects your finances
Having auto insurance when you lease or finance a car is essential to protecting your finances.
No matter how cautious you are, accidents and damages happen, and if you’re not covered by an insurance policy, you’ll be responsible for the repair or replacement costs.
Auto insurance provides financial protection against liability claims and other losses due to incidents such as fire, theft, vandalism and collisions.
The coverage can help you repair or replace your vehicle quickly and cost-effectively, without having to worry about the expense.
In addition, some insurance policies will provide you with compensation in the event that you are unable to drive your car due to an accident or other circumstance.
Without auto insurance, if you get into an accident, you may be stuck with a large bill for repairs, replacements or legal fees.
With the right coverage, however, you can protect yourself from any potential financial losses associated with the accident.
You may also be protected from the costs of lawsuits stemming from the accident.
If you already have insurance on another vehicle, it’s important to make sure that you have the coverage you need for your leased or financed car.
It may cost more than you think, but having auto insurance is essential for protecting your finances and ensuring that you are financially prepared for any situation.
Conclusion
Having auto insurance for a leased or financed car is a necessity for many reasons.
It may be a costly expense, but it’s well worth the peace of mind it provides.
Having the right auto insurance can help you feel more secure and confident when driving.
