Leasing a car carries with it an additional cost that many people don’t think about before signing. Virtually all lease contracts require that you carry ample insurance on the vehicle. In addition to liability insurance, they require collision and comprehensive coverage that insures the company financing the vehicle as well as the lessee. Whether leasing or financing, the same principles apply.

For optimal security, it is a good idea to include gap insurance in your lease policy. If you car is totaled before the end of the lease term, you are still responsible to make all of the required payments and are responsible for the value of the car. Gap insurance covers you for the remaining lease payments and for the difference between the vehicle value and the balance of what is owed the lease.

One of the more important reasons to shop for insurance before committing to a lease agreement is that lease insurance is not cheap. You want to be sure that you not only have sufficient coverage but that you are not paying more than you have to for it. Rates are variable, so review your policy annually.

Auto lease insurance is like other insurance policies in many ways. You get to choose the options that address your specific needs, purchasing no more and no less than is necessary. All providers offer essentially the same options but not for the same premium costs. Some providers are more user friendly than others, while some have better financial ratings.

You want to be secure knowing that the provider you select has a proven record of paying claims in full and on time. If not, you could wind up being responsible for a large financial loss.

If you do a bit of online research, you will have no trouble finding a reputable company that can offer you the protection you need for the best price.

If you live in Colorado and you own a car, you must carry auto insurance amounts that meet certain minimums. There are other options for additional auto insurance that may be beneficial to you, depending on the age or condition of your car. Let’s take a look at them.

Liability Insurance

In Colorado, you must carry liability insurance in the amount of $25,000 per person, or $50,000 per accident, for bodily injury coverage, and at least $15,000 in property damage coverage. If you can afford it, it’s recommended that you carry bodily injury coverage in the amount of $100,000 per person or $300,000 per accident, to further protect yourself.

Uninsured/Underinsured Motorists’ Coverage

Uninsured or underinsured motorists’ coverage is something that’s not understood by a lot of people. In Colorado, this insurance must be offered to you as a policyholder in the same amounts you choose for liability insurance coverage (for example, $25,000 per person, or $50,000 per accident, in bodily injury coverage). You can choose to reject it if you wish, but it’s a good idea to carry it.

With underinsured or uninsured motorists’ coverage, bodily injury costs for yourself and your passengers are covered in the event the other motorist doesn’t have enough insurance to cover you (or isn’t insured at all), and is at fault for the accident.

Medical Payments Coverage

Your insurance company is also required to offer you $5,000 in medical payments coverage in the event you’re in an accident; you can reject it if you so choose. The extra premiums for this insurance are simply added into your current premium.

Other Colorado Auto Insurance Options

In Colorado, you can also choose to buy collision and/or comprehensive insurance for your car, although these are not mandatory. Collision insurance covers you for car repairs or replacement in the event you’re in an accident and are deemed at fault. Comprehensive insurance covers you for repair or replacement in the event your car is damaged by a non-accident event, like a falling tree branch or vandalism, or if it is stolen.

It pays to compare Colorado Insurance quotes online. Whether you are looking to buy Colorado homeowners insurance or Colorado auto insurance or both, you can benefit by shopping around for the best price and the best deal to meet your insurance needs.

Tips for Comparing Colorado Insurance Quotes Online

The following tips are fairly generic in nature and can applied to both homeowners and auto insurance. Depending on the type of insurance you are buying, you can tailor some of your questions to that specific type of insurance. For example, you would not request a special rider to cover your expensive collection of fine art if you were buying car insurance and you would not request collision coverage if you were buying homeowners insurance.

1. Determine the type and amount of insurance you want or need.

2. Shop around and get quotes from at least three or four insurers.

3. Ask for the exact same coverage with each insurer that gives you a rate quote.

4. Ask if there are any discounts that you may be eligible to receive.

5. Look for the company that provides the best claims service.

Give Yourself Plenty of Time to Compare Policies

It can take hours and sometimes even days to contact a sufficient number of insurance companies, provide them with the pertinent information they need to give you an accurate quote and then hear back from them with the quote. Do not lose patience waiting for all the quotes you requested and simply go with the first quote because it is most convenient. Having a little patience can pay off with a much lower premium and a better overall deal on insurance.

Do Not Commit Too Soon

Similar to the above warning, give yourself enough time to evaluate each quote. Sometimes what appears to be the best deal is really not. If you do not understand all the terms of the quote, ask for clarification. No one is holding a gun to your head and if you feel pressured by one insurance company, that is a perfect reason to drop them from consideration.