When buying or leasing a new car, how do I go about insuring it?

Brett

Gary, IN

You need to contact your agent or insurance company in Gary Indiana to know exactly. Give your agent all the important information and get a quote on the premium. If ever there will be a problem in affordability, you will be happy to find out about it before you made the purchase.
For example, my friend financed his car through a bank and at that time he could not afford comprehensive and collision coverage. His bank secured coverage for the vehicle. In this situation, the bank or leasing company will initially expect your friend to have enough comprehensive and collision insurance coverage to protect their interests. If the vehicle was severely damaged or stolen and he doesn’t have such insurance, the bank or leasing company could look to you for the value of the remaining financing of the car. Since the car has been destroyed or stolen, you might feel reluctant to pay for a vehicle you can no longer use. For these reasons, the insurance company will secure coverage for you if you do not – and expect you to pay the premiums.

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I have a leased a vehicle and it is covered by auto insurance. If I let my daughter or son, who are over twenty five drive the vehicle, are they covered?

Janet

Plymouth, MN

Whether you own your vehicle or have a lease or a loan on it, to check if your children are covered by your current auto insurance policy you will need to read through your insurance policy and check with your insurance carrier.

If your daughter or/an son reside in your household then an insurance carrier would normally require them to be on your insurance policy to be properly covered. If they reside outside of your residence and drive your vehicle with permission, just as a friend might, then they are likely covered under your insurance policy. Some insurance policies have exclusions so that is why it is always good to verify with insurance carrier before permitting anyone that is not listed on the insurance policy to drive your car.

Since this is a leased vehicle you may also want to read over the terms and conditions of your lease to make sure there are no restrictions about who drives your car. If you are not sure after reading over the leasing paperworks then verify with your car’s leasing company to find out if your daughter and son are permitted to drive your leased car.

I just paid my car off could my full coverage be lower?

Bill

Chicago, IL

Congratulations on paying off your car so now you own your car and no longer having a lease holder or a lien holder to answer to. Without having a lien holder to mandate the type of insurance you need on the car any longer you can decide on what car insurance you want for your car, beyond the state minimum required coverage.

You may be surprise that the cost of these optional coverages are not needed because of the age or condition of your car and therefore may decide to remove them from your insurance policy or you might instead want to change the deductibles to a higher amount, and lessen the premium rate, and keep the coverages.

It is a personal decision to make depending on your insurance needs and financial situation for your particular car whether to keep physical damage coverages once you no longer have a lien holder requiring you to do so.