What Are the Insurance Requirements For When You Have a Lease?

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lease car insurance requirements

When you have a leased car, you should know that there are different requirements for car insurance. When you just own a car you can make whatever decisions you want about car insurance, but when you lease it, you’re technically not the owner. You must have the type of insurance that the company you are leasing it from requires. So, you have to research what you need and make sure that your insurance fulfills those requirements. You usually need to have liability, collision and comprehensive insurance.

Liability Coverage for Leased Vehicles

When you have a leased vehicle you will need to have liability coverage. In most states this is the main type of required coverage. There are two types of liability coverage. There is one that covers bodily injury and one which covers personal property. This will cover all of the sorts of things like medical payments and costs, damage to a car or personal property, and any lost wages for either passengers or drivers. Liability insurance is for when the accident is your fault. Hopefully you will not have to ever use this type of insurance but if you do, you’ll be glad you have it.

Comprehensive Insurance For Leased Vehicles

Comprehensive coverage helps you when all those weird things happen that you weren’t necessarily expecting. Your car got washed away in a flood. An angry mob set your car on fire. A bear broke your window. Comprehensive will cover you so that you do not have to pay up for these random occurrences.

Collision Coverage for Leased Vehicles

Collision coverage helps you if you get into an accident with something inanimate. It helps you if you hit a telephone pole or a road barrier. It can also help you in the case of a hit and run. Basically, anytime your car runs into something, you will hope to have this type of coverage. It’s a good idea not only if you have a leased vehicle. Anyone can benefit from collision coverage.

Protect Yourself with the Proper Lease Car Insurance Requirements

When you have the proper lease car insurance requirements for your car, you will feel better because otherwise if you get into some kind of accident you will have to pay for all the repairs yourself before you return the car to the dealership. You could and should also get other types of insurance offered like uninsured and underinsured motorist protection. This will cover you in case you get into an accident with a driver who has not done the same due diligence as you who doesn’t have insurance.

Getting covered when you lease a car or buy one is the absolute right decision. Make sure that you know what you need to get to fulfill the car leasing company’s needs and get that, so you will be fully covered where you need it. Car insurance is important for everyone, but especially for those who lease their cars because you don’t own it and you will be responsible for all the repairs if you don’t have the proper coverage.