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In Orange County, luxury auto leasingis becoming as popular as purchasing new vehicles. Even though people who lease vehicles don’t own the cars they drive, they are still required to carry insurance. Some types of insurance are mandatory, while others are highly recommended.
Liability
All drivers are required to have a minimum level of liability coverage in California. Liability covers you when you are at fault in an accident. California requires a minimum of 15/30 for bodily injury liability, which means each person in the other vehicle is covered at $15,000 and each incident is covered for a maximum of $30,000. Also, California requires $5,000 minimum for property liability, which is the amount paid to repair the other vehicle or property that was damaged in an at-fault accident. Most dealerships require those leasing a vehicle to have more than the California minimum. Normally, they require 100/300 for bodily injury coverage and $50,000 for property damage liability.
Uninsured/Underinsured
While all drivers are required to have liability coverage, some people ignore the law and drive without insurance. Others may carry the California minimum, but $5,000 won’t always cover the damage. Uninsured/underinsured coverage protects a leased vehicle in the event the other driver is at fault but does not have the coverage needed to repair the leased vehicle. California requires all drivers to carry uninsured bodily injury coverage of 15/30 minimum.
Collision
Whether you buy a new car or lease a vehicle, the dealer may require collision coverage even though California does not. Collision coverage takes care of the damage on your vehicle when you are at fault. This type of coverage also comes with a deductible. The higher the deductible, the less it costs for coverage. Most dealerships require a minimum of a $500 deductible.
Comprehensive
Comprehensive coverage protects a leased vehicle if it is damaged or stolen. This type of insurance is not required by California, but it may be required by the dealer leasing the vehicle. The minimum deductible is usually $500.
Gap Insurance
When a car is driven off the lot, it begins to decrease in value. If the vehicle is damaged or totaled in an accident, the insurance company pays out the actual cash value of the vehicle at the time of the incident, which is often lower than what is owed on the car. Gap insurance covers the difference between the actual cash value and the amount owed on the vehicle. Most leases require gap coverage. Often, gap coverage is included in the price of the lease. If it is not, the person leasing the vehicle will need to pay for this type of insurance. Gap insurance is not required by California, but it is a good idea to purchase it for your own protection. The good news is that gap insurance is included in almost every lease aside from open-ended leasing.
Just like obtaining adequate insurance is crucial, so is finding the best auto broker. If you’re searching for leasing services in Orange County, get in touch with Below Invoice. We can find the luxury vehicle you’re looking for. Call 949-630-0303 today.
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