Automobile Insurance Company Lincoln Nebraska NE

Reader’s Question:

Do I need to have automotive insurance even if my car is just leased? In case I need to, what’s the best insurance company here in Lincoln, Nebraska?

Johnny

Lincoln, NE

Hi, you may have to check with your leasing agent about what type of auto insurance you need to get (if they would require any). Typically, a leasing agent would require you to get a comprehensive auto insurance coverage. In essence, the financing institution does this to protect their interest in your loan. This is because when you get into an accident, the financial institution is left with the portion of your loan which is unpaid. That’s the reason why they prefer that you have liability limits that are beyond what the minimum coverage your area (which in this case is Lincoln, Nebraska) would require.

When you buy auto insurance for your leased car, you should remember that most insurance companies pay only the actual cash value — that is the market value including the age, mileage, and wear-and-tear of the car — rather than its replacement cost. Let’s say you have an old model BMW and you unintentionally get it crashed, you cannot expect the insurance company to replace your car with a brand new model BMW. And as you know, whatever’s in excess of your insurance company’s liability, you are obliged to pay for it.

So don’t be sparing with your car’s auto insurance coverage. Generally, higher insurance coverage don’t cost much more than those with less coverage, anyway. Besides, you are doing this because you want to make sure that you’re safe in case you get into an accident, right? Insure yourself to the right limit and you’ll see how it will eventually pay off.

Have a great day!

Tags: auto insurance, car insurance, Car Insurance Company