Insurance is a significant part of your lease contract required study and consideration. Many lease contracts include some standard insurance already but the scope and conditions should always be verified. As a customer, you cannot be forced into paying for the insurance with the lease contract. In other words, while insurance is obligatory in most of the lease cases, you are free to choose your own insurance company which would provide you a corporate deal and insure your leased vehicles or leased equipment under “package conditions” and with special premiums next to your health insurance or property insurance.

You should always pay attention to the Insurance clause of a lease agreement and ask very direct and practical question to your leasing agent or lease company and compare the answers with those obtained from your insurer. A standard set of insurance questions to your leasing deal would be:

Do  I have insurance coverage on my equipment?

Will I get a refund of insurance when the lease pays out?

The vehicle or equipment I am leasing has been damaged. What do I do?

I have a check from my insurance company in payment of damages sustained to my equipment or in case of  a total loss to my leased equipment. How should I handle this check between a leasing company and an insurance company?

Always make sure that practical questions regarding your insurance of the leased vehicles or equipment are duly worded in the lease contract and remember to make sure that the lease period and the insurance period actually do match.

Tags: Insurance