When it comes to owning a new vehicle, there are two ways in which you can go about obtaining one.  You can buy it, or you can lease it.  Buying the vehicle means that you are purchasing it and once it is paid in full, you own it outright.  Leasing a vehicle essentially means that you are paying for the vehicle that you use.  So with a lease, you are not paying the full price just what you use during a set time period. 

When you buy a vehicle and don’t finance it, you must insure it, but only for state-mandated liability coverage.  Insuring the vehicle itself against collision or theft is up to you.  When you finance or lease a vehicle, since technically you don’t own it, you may be required to carry full or additional insurance to protect the dealer and the bank.  Dealers and banks can require that you carry more insurance to protect their property through the course of the lease or until the vehicle is paid off, in the event of damage or it being stolen. 

If you are in the market for a new vehicle, you will want to consider all of your options before buying or leasing.  It is important to check the dealer requirements and the cost of a policy if you decide to lease or finance a vehicle. 

For a free quote on protecting your financed or leased vehicle with auto insurance, please contact an AIS Insurance representative.

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.

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How many of us have stopped to think if we should take on the extra rental car insurance at the time of rental?  Many people don’t want to spend the extra money, but also want to be covered in the event of an accident with the rental car.  This leads to the question: “Does my current policy give me complete coverage in the event of an accident in a rental car?”  While the answer can be different for owners of different auto insurance policies, there are some general items you should take into account when whether deciding to purchase the extra rental car insurance. 

If you have full coverage on your car, there is a good chance that your current policy can cover you in a rental car.  Before you decide not to take the extra coverage from the rental car agency, read the fine print in your rental contract.  Some companies have very strict rules about how they operate and deal with your insurance company in the event of an accident.  In the long run, it still may be cheaper to purchase the extra insurance from the car agency.  Most rental companies have information online about how their insurance policies work and the services that they offer.

For those who may carry coverage such as personal injury and liability coverage, these do not cover damage, so when renting a car, the damage to the rental in an accident would not be covered.  If this is your situation, you will want to purchase the extra insurance provided by the car rental agency to ensure that you don’t have to pay for the full damage and labor of fixing the car.

Even if you do have collision coverage, you should know that it excludes things like diminution of value (the reduced value of a vehicle after repair) and loss of use (the lost rental value of the vehicle while being repaired), while the coverage you can purchase from the rental agency does include these items.

Before renting a car, it is best to check the details of your policy and the policies of the rental company you choose.  For more information about auto insurance products, (link to http://www.aisinsurance.com/california-auto-insurance) please contact a specialist at www.aisinsurance.com. 

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.