Leasing is a convenient way to get into a new car without accruing long-term debt or providing a massive down payment. However, many common mistakes can make leasing much more expensive in comparison to buying a car, especially if you don’t have enough auto insurance to cover an accident. The guide below explains what to avoid.

What Not to Do When Leasing a Vehicle

1. Pay Too Much Up Front

Putting several thousand dollars down may qualify you for lower monthly payments since a portion of the lease is already paid off. However, if the vehicle is stolen or destroyed in the first few months, your down payment will disappear. To insulate yourself from risk, it’s generally best to pay as little as possible upfront.

2. Going Without Gap Insurance

If your leased vehicle is totaled in an accident, the auto insurance company will only pay the value of the vehicle, which will likely be much less than the total lease amount. Without gap insurance to cover the difference, you could be left with heavy out-of-pocket expenses for a car that is no longer drivable.

3. Underestimating Your Annual Mileage

Some lease offers with low payments also have very low mileage restrictions, limiting you to just 10,000 or 15,000 miles per year. If you go over, you might be charged up to 30 cents per mile, which could add up to thousands of dollars. Before signing a lease, have a clear understanding of your driving habits.

Since 1995, the agents at Allstar Insurance have been helping drivers throughout Lincoln, NE, protect themselves from the unexpected. Whether you’re leasing a car for the first time or own your own vehicle, let these experienced agents help you find high-quality coverage at the best rates possible. Visit their website for more on their wide range of services, get more tips and advice on Facebook, or call (402) 477-0900 to request your free auto insurance quote.