Leasing and Auto Insurance- It is easy

For one reason or another you have chosen to lease a car vs buying it. Now it is time to insure it. Usually the leasing companies offer insurance also-what’s better than that-you don’t have to waste time shopping for auto isnurance.

On the other hand if you decide to go this way you risk paying more than you should.

When you lease, the vehicle that you will drive belongs to the leasing company. They want to make sure that their investment is covered in the event the vehicle gets damaged, totalled or stolen. They typically want
to get covered for the difference between what your auto-insurer pays and your outstanding leasing obligations at the time of the accident or damage. This is called GAP, short for Guaranteed Auto Protection, and isusually included in the leasing contract.

If your leasing company is called BMW Financial Services, Chrysler Financial or any other finance division of an automaker, then chances are your GAP insurance will be offered by the same lease company.

You are under no obligation to accept GAP insurance included as part of your lease agreement. Why pay an insurance premium if you could get the same coverage for a lower price?

Invest some time shopping by comparing quotes from other insurance companies, including your existing one. Ask for discounts that you already qualify for and adjust your coverage accordingly.

Car Insurance for Small Businesses

You are a small or micro business. You use your vehicle for personal use as  well as for business needs.

At the same time you are not the only one driving your vehicle(s). Here are the questions you need to ask yourself before approaching a car insurance agent in order to get the coverage that you need at the price you like.

1. Do you need uninsured motorist protection?

2. Do you need coverage for young or inexperienced drivers?

3. Do you want to protect certain assests in your vehicle?

4. How much medical coverage do you need in case of car accident

If You Are a Single Parent with a Teen Who Wants to Drive- Read This

My sixteen-year-old daughter recently got her driver license, and I added her to my auto insurance policy. Despite her being a girl, getting good grades, driving only occasionally – her rate is through the roof, as it would be for any first-time driver.

At least I can split the cost with her mom. Right?

Wrong!

Insurance companies in California insure a driver for a specific car. They rated my daughter for my vehicle, but they won’t insure her if she drives her mom’s car. On the surface, that seems reasonable. We’re a two-home family and my daughter spends equal time with me and her mom. Two homes, two cars, two insurance policies.

Since she only lives with me half time, I should pay half as much to insure her. Right?

Wrong!

The insurance company explained it this way: your daughter has 24/7 access to your vehicle, so we need to insure her on it 24/7.

What a load of crap. My daughter only lives with me half time, and I only have one car. She has access less than half the time. Compared to other teens, that’s less than half as much chance for her to get into an accident in my car.

In a traditional (non-divorced) home with multiple cars, the teen gets rated for primarily driving one of the vehicles. However – if that car isn’t available, the teen is allowed to drive a secondary vehicle in the household, and they will be insured.

So, my ex-wife’s car be considered a secondary vehicle. Right?

Wrong!

The insurance company wants nothing to do with my ex-wife’s car. Unless… if my ex-wife moves her auto policy so we’re both insured by the same company, then they will create a policy that covers my daughter on both cars, without charging us double.

Sounds to me like single parents are being discriminated against by the insurance industry. Unless we’re willing to shill and sell an auto policy to our ex.

What do you think about that

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5 Reasons Your Insurance is Sky High

1. You have set low deductible

2. The car you drive is very expensive

3. You have recently added a new or young driver to your policy

4. You have had multiple traffic violations or accidents

5. You haven’t shopped around lately for cheaper rates

Do High Gas Prices Mean Cheaper Insurance Rates?

Obviously it does. At least that what folks at Mercury General Corp. think. The insurance company already cut its insurance rates for almost 2 million customers this year.

The third largest insurer in California reduced its annual rates by about $30 per vehicle for 1.7 million of its customers.

“Faced with skyrocketing food and gasoline prices, Mercury’s policyholders won’t have to worry about the cost of their insurance,” Mercury Chairman George Joseph said in a statement.

Do you think that you pay too much for auto insurance and isn’t it time major auto insurers to follows Mercury’s lead

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