“If you are out to buy car insurance first car policy then there could be few things which you need to know before you start researching your options. Typically, new cars can be purchased in 3 different ways-outright payment, finance or lease.” 

Depending on the payment option that you choose, new car insurance packages will vary. For example, if you decide to purchase a car outright by paying cash, you become the sole owner of the vehicle. All you need to do is just get it registered in your name with the DMV of your state. You can thereafter buy an auto insurance coverage which is in accordance with your state’s driving as well as insurance rules and regulations.  

For buyers who intend to get good first cars cheap insurance covers, there is another scenario. Some may get their car financed and if that is your case then your lender may require you to buy collision and comprehensive car coverage features over and above what is mandated by your state’s laws. This is because the car is under finance and you are going to pay the cost of the loan. There is yet an altogether different proposition and that is getting a car on lease. Here the driver is not the owner of the car and besides, state DMVs will consider leasing as a long-term rental car. Accordingly, the needs and requirements will change.

As a result, during your effort to find the best first car insurance company, you will have to take into consideration several things which include leased car’s maintenance requirements, state limitations on mileage for leased cars and insurance coverage. As per the Insurance Information Institute, the leasing company may ask you to purchase comprehensive and collision coverage features in addition to the auto insurance requirements stipulated by your state’s driving laws. And if the leased car gets damaged beyond repairs then it may be totaled, you might still owe money to the car dealer and find out how much money you can get from the insurer for the depreciated car. The differential amount between the two is known as “gap” and to cover that you may have to buy gap insurance coverage.

Therefore, when you get and compare auto insurance online for leased car, the money you are likely to spend on gap insurance can be rolled into the lease car payments. By doing so, you can practically save hundreds of dollars that you will be otherwise spending from your pocket if the leased car gets totaled in an accident. Thus, you will not have to pay gap amount to the car leasing company which will only have a master policy to cover an entire fleet of vehicles. However, you will have to verify that with the rental car company prior to singing a car leasing contract.