If you lease a car, you still need to buy your own state or California auto insurance policy. The auto dealer or financing bank will require you to buy collision and comprehensive coverage. You'll need to obtain these coverages, in addition to others that may be mandatory in your state, such as auto liability insurance.

Collision coverage on your state or California auto insurance covers damage to the car from an accident with another automobile or object.

Comprehensive on your state or California auto insurance covers loss caused by something other than a collision with another car or object, such as a fire or theft or collision with an animal.

The leasing company may also require "gap" insurance. This refers to having an accident and your leased car is damaged beyond repair or "totaled". There's likely to be a difference between the amount that you still owe the auto dealer and the check you'll get from your state or California auto insurance company. That's because the insurance company's check is based on the car's actual cash value, which takes depreciation into account. The difference between the two amounts is known as the "gap".

On a leased car, the cost of gap insurance is usually rolled into the lease payments, so you won't actually buy a gap policy. The leasing auto dealer buys a master policy from an insurance company to cover all the cars it leases and charges you for a "gap waiver". If your leased car is totaled, you won't have to pay the dealer the gap amount. Check with the auto dealer when leasing your car.

If you have an auto loan rather than a lease, you may want to include gap insurance in your state or California auto insurance policy to protect yourself. Then you won't have to come up with the gap amount if your car is totaled before you've finished paying for it. Ask your state or California auto insurance agent about gap auto insurance or search the Internet. Gap insurance may not be available in some states.

To find an independent California auto insurance agent, visit www.Direct Choice Insurance .com