When releasing a vehicle from Ford, whether or not for credit is used, it is a really good idea for the customer to be aware of what the various insurance comments are likely to be on the vehicle, as they may well be different from what the customer would expect if they bought the vehicle outright, and may well have a significant impact on the cost of leasing vehicle, and of its running costs.
As with any auto insurance, it is essential to first to find out what the legal comments are in terms of liability insurance for you live.
If you are leasing vehicle out of state, then it is crucial to make sure that you meet the insurance requirements of the state in which you are leasing the vehicle as well as where you live.
Although missing the legal minimum requirements in terms of liability insurance is essential, when leasing a vehicle from Ford they will inevitably require that you take out a much more comprehensive form of insurance that covers all types of damage to the vehicle itself in the event of it being damaged or written off.
The wording as to what type of insurance is required will vary depending upon where you live, but it is crucial to have an understanding of what Ford credit will require.
Ford Leasing Insurance Requirements
A Ford dealership is unlikely to insist on any particular insurance company, but they will require proof that such auto insurance has been effected before any lease agreement can be signed off or entered into.
It is therefore crucial to get an idea from Ford of exactly what insurance comments they have regarding leasing prior to making a formal approach or application. the other type of insurance that will also be required is what is known as gap insurance.
Gap Insurance is a type of insurance policy that covers the difference between the drive away value of the vehicle, and it’s actual value if it is damaged or stolen or lost in any way shape or form. It effectively covers the depreciation of the vehicle from the moment it leaves the showroom until the moment the insurance company agree its market value.
This type of insurance will most definitely be required by Ford credit on any leasing program. What is important to know is sometimes the cost of it is included in the lease agreement, other times not.
It is therefore important to find out if it is covered, and if so the cost. If it is not covered, then it will be a requirement by Ford that there is such a policy put in place. At that point it is important to make sure that you get quotations from any insurance company that Ford has contacts with, or any other individual insurance company is going to offer such a quotation.