1701 Gateway Dr. Ste. 431
    Richardson, TX 75080
    972-480-9878
   

 If you lease a car, you still need to buy your own auto insurance policy. The auto dealer or bank will also require you to buy collision and comprehensive coverage additionally.

1. Collision: covers the damage to the car from an accident with another automobile or object.

2. Comprehensive: covers a loss that is caused by something other than a collision with another car or object..
The leasing company may also require gap insurance. If your leased car is damaged beyond repair or "totaled" due to accident, there would be a difference between the amount that you still owe the auto dealer and the check you get from your insurance company. The difference of the amount is named "gap".

The cost of gap insurance is usually rolled into the lease payments. Generally, the auto dealer buys a master policy from an insurance company to cover all the cars it leases and charges a "gap waiver" to you. Then if your leased car is totaled, you won't have to pay the dealer the gap amount.

If you have an auto loan, you may want to buy gap insurance to protect yourself from the gap amount if your car is totaled before you've finished paying for it.

Ask your insurance agent about gap insurance.

Gap insurance may not be available in some states.