Like to change cars every four years? Then you’re a believer in long-term leasing. Whether you lease or own your car, you should know that you are required to have auto insurance. Before you decide on the car model you’re going to lease, find out how much it will cost to insure.

Long-term lease

Whether you lease or buy a car, your insurance policy is the same. However, the insurance card will be issued in your name and that of the leasing company. It is sent to you directly.

As a rule, you need to present the dealer with proof of insurance to be able to lease a car. The dealer will likely require complete coverage for the leased vehicle. Otherwise, you won’t be able to drive off the lot with it.

Short-term rental

When you rent a vehicle for a short term, the car rental company will suggest you purchase the collision damage waiver. With this coverage, the company covers any damage and undertakes not to sue you if the rented vehicle were damaged.

Thinking about buying the coverage offered by the car rental company? Before you do, first check whether your car insurance policy includes Endorsement 27. It could provide you with greater coverage at a lower cost.

Do you often take out a short-term rental?

Adding coverage such as “Damage to vehicles not owned by the insured” (Endorsement 27) to your policy can be advantageous. Check with our brokers whether you already have this coverage. If not, it would cost just a few dollars more to add it. This way, the insurance coverage included in your policy would apply to rental cars. You wouldn’t have to buy the insurance sold by the car rental company.

Source : infoassurance.ca