DUI In Georgia

Reader’s Question:

Aside from liability insurance which is required here in Georgia, why do financing companies require a driver who leases the car to them to have collision and comprehensive coverage?

Samuel

Augusta-Richmond County, GA

Even if you are not done paying for the loan on your car, the state of Georgia still requires you to have at least the minimum level of liability coverage on your vehicle insurance. As a matter of fact, most of the time, financing companies would require you to have comprehensive and collision coverage even though it is not mandated by the law.

If you have collision coverage as part of your vehicle insurance, it will pay for any damage on your leased car if you get hit by another vehicle or if you hit an object. Then if you have comprehensive coverage on your vehicle insurance, it will pay for any damage on your leased car that is caused by anything other than a collision such as theft, vandalism, storm, flood, fire, etc.

The collision and comprehensive coverage on your vehicle insurance is a good investment not only on the financing company’s part but also on yours. If you think about it, if you don’t have these types of coverage on your vehicle insurance, you would have to pay for the repairs of the car from your own pocket. So you don’t have to worry about your car being damaged so long as you have collision and comprehensive coverage on your vehicle insurance. Keep in mind though that these types of coverage also have deductible that you have to pay first before your car insurance company picks up the rest up to the limits of your vehicle insurance.

Tags: auto insurance, collision coverage, comprehensive coverage, vehicle insurance