Do you have a car or van on lease? Do you know what happens in the event of an accident?
A friend recently ran into problems when he managed to put his beautifully restored old Jaguar through the wall of a multi-storey car-park. The accident was clearly his fault and he and his insurance company were liable for the cost of all repairs, including substantial structural repairs to the multi-storey car park. But what if the car had been on a car leasing contract?
Most new vehicles supplied on car leasing contracts will have breakdown cover provided for the duration of the vehicle warranty. Contracts may also be agreed that include maintenance and most repairs for the duration of the contract. I say most repairs because, typically, bodywork repairs are not included.
Damage incurred as a result of an accident must be covered by insurance. If a leasehold vehicle is written off in an accident there could well be a shortfall between the value of the vehicle and the outstanding financial amount. In these circumstances GAP insurance would cover the difference.
When selecting and negotiating a car leasing contract it is adviseable to discuss the recommended insurance options and make certain that you have adequate cover for all possible eventualities.
One Response to “Do You Have Adequate Accident Cover?”
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November 26th, 2008 at 3:45 pm
Thanks for this. Your post has prompted me to look at the insurance I have for my leased Lexus. I found that I was liable for more than I imagined so your post may have saved me a packet - and a lot of headaches.