Lease insurance is an additional cost that can be added to your monthly payment. The leasing company typically requires it, and it covers damage or loss of the vehicle during the term of your lease.
The average cost of lease insurance is $20-$25 per month, but this varies depending on which state you live in and what type of coverage you choose. You may also have to pay an upfront fee at signing time and any deductible fees if damages or losses are covered under your policy.
Lease protection insurance helps protect against financial loss if you cannot continue making your monthly payments on time due to unforeseen circumstances such as job loss, illness, or injury. It’s important to note that this policy does not cover wear and tear on the vehicle itself. It only protects against unexpected events outside of your control.
You will still be responsible for any necessary repairs after an incident covered by this policy has occurred. However, these types of claims are typically much less expensive than paying off a lease early because they do not require repossession fees or penalties from the leasing company.
In addition, some policies offer reimbursement for rental cars while yours is being repaired, which can save you hundreds each month. If you’re considering getting a leased car, make sure to look into all costs associated with it before deciding whether or not it’s right for you.
There are many different types of lease insurance available today so do some research before deciding on one that works best for your lifestyle and budget needs. If you’re leasing cars or trucks, then lease protection insurance is an absolute must. This coverage protects your business from the financial risks of vehicle loss and damage.
To learn more about types of insurances, visit Lakeville Motor’s blog section.