Guide to Securing Insurance for Leased Vehicles
Leasing a vehicle involves specific insurance obligations from the start. This guide explains how to secure the proper coverage, including liability, collision, and comprehensive insurance, which are typically required by leasing companies. Understand the importance of meeting insurance standards to protect both the vehicle and your leasing agreement.
Sponsored
Opting to lease a car instead of purchasing offers several benefits. It typically involves lower upfront costs and allows access to newer, often luxury vehicles that may be out of reach financially if buying. With favorable interest rates, leasing has become an attractive option for many drivers.
Leasing means using the vehicle for a specified duration before returning it to the dealer. But how does insurance work in this context? Is it similar to renting, or does it resemble owning a vehicle? The reality is, leased cars require dedicated insurance that must be active right from the moment you start driving.
While leasing can save money on the vehicle itself, the insurance costs do not necessarily decrease. Many lease agreements mandate specific insurance coverage levels, making it essential to comply fully.
Leasing companies want to protect their assets, especially since they don’t own the vehicle. Therefore, they require adequate insurance coverage for theft, accidents, and damages. Typically, lease agreements demand higher liability coverage than the minimum set by state laws, along with collision and comprehensive protection. Unlike owning a car, where you might risk skipping certain coverages, leasing necessitates comprehensive insurance to meet the lender’s requirements.
