While approximately 80 percent of automobile shoppers either buy there automobile with cash or finance their automobile, you are deciding to become one of the other 20 percent who are willing to forgo owning and lease their next automobile. Perhaps you are self-employed and are able to deduct your lease payment as a business expense on your taxes. Or maybe you’re trying to move up to a premium model for less upfront cash.

Whatever your reasoning, if you do decide it is become the time to lease, remember that the amount of insurance coverage you need will most likely be more than if you finance the automobile when your getting free insurance quotes. When you lease, your auto belongs to the leasing company. They want to be certain their investment is protected in case the automobile is destroyed in an accident, or if the automobile is stolen. They will also require you to maintain high enough liability coverage in case the accident is your fault. This serves 2 purposes it covers you from a financial hardship, and can also covers the leasing company in case they are held partly responsible in a lawsuit. While each state has their own requirements, on average, the minimum liability insurance coverage for most states is about one fifth of what leasing companies will usually require from you.

If you are going to try to get discount auto insurance remember the leasing company will also require you to maintain comprehensive and collision coverage, which will protect you from damages resulting from the perils covered in your policy: fire, theft, vandalism, civil riot, and collisions with animals. You will generally not have a choice of deductibles, your lease contract will usually dictate your deductible amount.

“Gap Insurance” may also be included in your lease contract. It protects you if you total your car, this insurance will pay the difference between how much you owe on your lease and how much your insurer agrees to pay you for your automobile based on its current dollar amount.

When your in a severe accident and your vehicle is severely damaged, the your insurance company has the option of “totaling” the car and can either pay the leasing company or your the actual cash value of the car, or repairing it. If you do not have gap insurance and your car is totaled, even after the leasing company receives their payment from your insurance company, you may still owe money on your lease contract.

If your lease agreement doesn’t include gap insurance, you might want to consider buying it yourself. Otherwise, you may find yourself still paying for a vehicle you can no longer drive in addition to get a replacement car.

If the insurance company decides to make repairs to your car, speak with the leasing to be certain the repairs won’t cause problems for you at the end of your lease. Most lease contracts say that you are responsible for any “excess wear and tear.” This means you’re responsible for any damage to the car, even that which was previously repaired by your insurance company.

To avoid any additional costs resulting from the repair of your car, verify that all of the paint matches, the tires match, and that repairs were made with original equipment manufacturer (OEM) parts. If the car is not returned to the leasing company in its pre-determined condition, you may be responsible for the cost of additional repairs.

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