Understand Your Insurance Requirements
Financing or leasing a vehicle can change your auto insurance needs. While Connecticut law requires drivers to maintain liability coverage and uninsured/underinsured motorist protection, lenders and leasing companies often require additional coverage for the vehicle itself. It’s worth familiarizing yourself with what could change regarding your policy before signing.
Financing vs. Leasing
When you finance a car, you gradually build toward ownership while the lender retains a financial interest in the vehicle. When leasing, you’re essentially borrowing the vehicle under an agreement and need to follow the leasing company’s specific insurance requirements. Both arrangements commonly require collision and comprehensive coverage, which address damage to the vehicle under different circumstances. Review your financing or lease agreement closely to confirm the exact requirements before driving your new vehicle. The more familiar you are with your agreement, the better prepared you’ll be.
Update Your Policy Before Driving
No matter which option you choose, it’s always worth reaching out to your insurance provider beforehand with any questions. When purchasing or leasing a vehicle, lenders may ask for information such as the vehicle identification number or ownership details. Insurance companies can also walk you through other necessary details, such as deductibles or gap protection. Taking the time to understand your options matters.
Contact Our Insurance Agency Serving Griswold, CT
At Trahan Insurance Agency LLC, we help drivers in Griswold, CT, understand their auto insurance options when financing or leasing a vehicle. We can review your current policy and help you identify questions worth asking your lender or leasing company. Before signing an agreement, contact Trahan Insurance Agency LLC to discuss your insurance needs and ensure you understand the requirements for your next vehicle.