When you receive payment for a vehicle
that has been written off payment is calculated by the market
value of the car, and as everyone knows once a vehicle has
been purchased it instantly drops steeply in value. Gap insurance
will cover the amount left over to pay the leasing company,
if the amount owed on the car is more than its market value.
Often gap insurance is included in the lease payments with
most vehicles, because the car dealer buys a policy that covers
all of their cars. In this case if the car is written off
you will not be responsible for the gap payment. Although
it is a good idea to ask the leasing company about what they
cover and what you will need to get insurance for.
When it comes to obtaining auto insurance for a lease car,
there are now car insurance company operations now in business
that specialize in providing consumers with this type of car
insurance. Because more and more people are leasing autos
today, there is an ever growing number of companies that do
specialize in this type of car insurance, that specialize
in car insurance for people who lease their autos.
If you want more information about car insurance for a vehicle
that you lease, you will want to contact a car insurance company
directly or contact an agent that specializes in this type
of coverage. Finally, there are now materials available at
the insurance commissioner's office in your state that can
assist and aid you in making decisions about car insurance
for a vehicle that you do lease.