Leased Car Auto Insurance Rates in Utah

Reader’s Question:

Is it true that the lease company will pay for your auto insurance if you are leasing a vehicle? I live in Salt Lake City, Utah.

Michelle

Salt Lake City, UT

I think that is not true. The leasing company in Salt Lake City, Utah do not pay for the car insurance if you are leasing a vehicle with them. In the leasing documents it probably states there that you are responsible for carrying not only the state minimum mandated liability car insurance on the automobile but physical damage coverages of comprehensive and collision.

If you do not maintain the proper insurance on the vehicle and the leasing company finds out about it, what could happen because of this would be determined by the terms of your leasing documents. It is possible that the leasing company place “forced” insurance on the car, which would cover their asset which is the car. Normally, forced insurance is charged to you if you let the required auto insurance lapse.

When the leasing company gets the “forced” insurance for you, these charges are subject to interest and the car insurance premiums will be higher than if you buy the auto insurance yourself. This forced insurance will provides protection to the financial institute or the bank, not you the lessee, for their interest in the vehicle.

Filign an Auto Insurance Claim in Utah

Reader’s Question:

I bought a new car last month and it is paid off. I got involved in a crash and I was at fault, my question is, will my insurance in Provo, Utah cover the vehicle or just the other party?

Pierce

Provo, UT

This will actually depend upon what auto insurance coverages you have put on your new car. If you have the comprehensive and collision coverages then your vehicle is protected by your car insurance policy. So if you are at fault in a crash your liability coverages would cover cover your own car and those that you caused damage to.

If you did not place collision coverage on your car, then you would not have any coverage on your car and so could not make a car insurance claim.

Most drivers that have a new vehicle will want to protect their vehicle, by placing both comprehensive and collision coverages on the car. Those with a lease or loan on a car will normally be required to have the physical damage coverages of comprehensive and collision on their vehicle. If an individual owns more than what a vehicle is worth they would also want to obtain GAP insurance that would cover the balance between what the automobile is worth and what they owe on the vehicle.

If you are not sure of what car insurance coverages you have on your car insurance policy in Provo, Utah, then read over your car insurance policy and talk with your car insurance agent for verification. If you do have collision coverage on your car insurance policy then you could place a first party claim with your insurance company for the damages your vehicle sustained in an at-fault accident.