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What You Need to Know About Leasing a Vehicle

Posted on by Martinson Agency

What You Need to Know About Leasing a Vehicle

March 2nd, 2017 — Martinson Agency LLC — Chaska, MN

Leasing a car is becoming more and more popular as time goes on. Leasing offers significant benefits as compared to purchasing a vehicle. Edmunds, a research publication that focuses on the automotive market, released the following data from its study last summer on leasing:

  • The first half of 2016 saw the highest number of new car leases on record.
  • Over the past five years, the number of car leases has doubled.
  • Millennials represent the largest group of lessees at more than 34%.
  • When looking at the whole, lessees pay 23% less each month on average than those who have a financing program

If you are one of the many Americans considering signing an automobile lease, there are some things you should know.

The Basics

Anyone interested in leasing a car should first understand whether or not it’s the right move compared to buying, according to US News. For example, the source explains that the standard lease agreement puts a limit of 9,000 to 15,000 miles annually. If you think you are going to exceed that, it might not benefit you to lease given the immense penalties you could end up paying. On the other hand, individuals who are committed to maintaining their leased vehicles or desire an automobile they wouldn’t otherwise be able to afford, are indeed strong candidates for this path.

Bankrate, a financial website, urges consumers to avoid five common mistakes in the leasing process, including, paying exorbitant sums up front, failing to maintain the interior and exterior of the vehicle, and leasing a vehicle for more time than the warranty period. Bankrate also notes that failure to get gap insurance could lead to financial peril for the lessee.

Since Coverage is an important factor in this conversation, let’s look further into the key matters involved.

Insurance Considerations

The Insurance Information Institute offers some helpful guidance to individuals who are looking to lease a car and protect themselves from the potential financial damages that could accompany theft or an accident. In most instances, you will have to keep comprehensive and collision coverage, but this will rarely cover the entirety of your liability if the vehicle is completely totaled. That’s where gap coverage comes in. Gap coverage, sometimes referred to as loan/lease coverage, reimburses the lessee in the event of an accident and there’s a “gap” between the amount owed the auto dealer and the insurance claim payment.

The vast majority of consumers will not have to purchase their gap insurance separately, but rather foot the bill as part of the monthly payment to the lessor.

Make sure that you read all of the fine print on leasing contracts, especially the content related to insurance and liability, before signing on.

With any questions regarding coverage when leasing a vehicle, give your insurance professionals at the Martinson Agency in Chaska, MN a call today!

Don’t leave your insurance to luck! Call today us today!

Phone: (952) 314-4400

Email: jphagen@aibme.com

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The Penalties and Consequences of Driving Drunk

Posted on by Martinson Agency

The Penalties and Consequences of Driving Drunk

May 5th, 2016 — Martinson Agency LLC — Chaska, MN

With just about everyone carrying a smart phone these days, you can understand why distracted driving has garnered so much attention. And for good reason, as according to government data, nearly 3,200 people were killed in 2014 in collisions where multitasking was to blame.

However, equally worthy of the public’s awareness is a behavior that leads to even more senseless deaths: driving impaired.

It’s estimated that 10,000 people per year are killed in alcohol-related car crashes, according to the National Highway Traffic Safety Administration. That’s the equivalent of 1 every 51 minutes.

“Intoxicated driving offenses have fallen 80% over the last 40 years.”

Believe it or not, the rate has gone done over the years. Between 2007 and 2014, for instance, the proportion of drivers whose blood-alcohol levels were above the legal limit fell 30%, based on NHTSA estimates. And since 1973, the first time analysis was done on drunk driving prevalence, offenses have decreased by almost 80%.

All 50 states have ignition interlock laws Part of the reason for the decline stems from a national crackdown on the illegal activity. Today, all 50 states require at least some drunk driving offenders – typically those who’ve been caught more than once – to install ignition interlocks in their motor vehicles. These prevent drivers from operating their automobiles when under the influence. Since states first passed ignition interlock laws, nearly 1.8 million attempts at driving drunk have been avoided, according to numbers from social services organization Mothers Against Drunk Driving. Texas, Arizona, West Virginia and New Mexico have some of the stricter ignition interlock laws in the country, with added legislative efforts being made in other states as well.

Other major deterrents to drunk driving are the consequences that can result, none more significant than potentially being involved in a crash that could cause death or injury. Based on analysis from NHTSA, drivers whose blood alcohol level tests above 0.08 are four times more likely to crash than sober drivers. The chances are 12 times greater with an alcohol level of 0.15, twice the legal limit.

Drunk driving penalties can cost thousands

“The punishment for driving drunk varies depending on the state and gravity of the offense.”

Then there are the financial ramifications, which vary depending on the part of the country that it takes place. For example, in the District of Columbia, penalties after a first offense may include 180 days license suspension, not to mention a $1,000 fine. If caught a second time, the fine more than doubles to between $2,500 and $5,000. License revocation may also increase to a full calendar year.

The consequences related to auto insurance are equally damaging. Because drunk driving is a risk to safety, your premiums are bound to rise substantially. You may also be required to obtain special forms mandated by states before being allowed to drive again or register your car.

Dame Helen Mirren put it best – and rather bluntly – in a commercial at this year’s Super Bowl: If you drive drunk, stop it. The stakes are too high, the consequences too severe.

Don’t leave your insurance to luck! Call today us today!

Phone: (952) 314-4400

Email: jphagen@aibme.com

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