Do I Need Insurance for Leased Car

Car leasing is one of the most popular ways to get a new car. It’s also a great way for people to try out different makes and models before they buy something. But there are some risks you need to be aware of when leasing a car. In this article, we will explore some of the risks associated with leasing a car, and whether or not you need insurance for it. We will also provide you with a few recommendations for insurance that covers leased cars.

What is Leased Car Insurance?

Leased car insurance is a type of insurance that covers your vehicle when it is leased from a dealership, car rental company, or other entity. The policy typically has lower limits than personal automobile insurance, and you may be able to get a policy for free if you are leasing the car from a qualified provider.

There are two main types of leased car insurance: collision and comprehensive. Collision coverage pays for damage to the leased car that is caused by another vehicle, while comprehensive coverage covers all risks related to the car, including theft and vandalism. It is important to compare rates before selecting a policy, as policies can vary dramatically in terms of premium cost and coverage.

Types of Coverage

There are a few different types of coverage you may need when leasing a car.

Ownership coverage protects you if the car is lost, stolen, or damaged while in your possession. This type of coverage is usually included as part of the lease agreement.

Liability coverage insures you against financial damages you may incur if someone else is responsible for causing damage to the car while it’s in your possession. This type of coverage is also commonly included in leases.

Collision coverage pays for injuries or damage that occurs to the car during an accident. This coverage is typically not included in leases, but can be added at an additional cost.

How Much Does Leased Car Insurance Cost?

If you lease a car, you will need to make sure that you have the appropriate auto insurance in place. You may be wondering how much leased car insurance costs. In general, the cost of leasing a car can range from $20 to $300 per month, depending on your specific vehicle and rental agreement. In some cases, your credit score may also affect the price of your lease-car insurance policy.

When shopping for a lease-car insurance policy, it is important to evaluate all of the options available to you. Some of the factors that you may want to consider include:

The deductible amount – This is the minimum amount that you are responsible for paying out of pocket before your insurer begins to reimburse you. The higher the deductible amount, the lower your monthly premiums will be.

The protection level – Most insurers offer at least three protection levels: comprehensive (all losses), liability (personal injury and property damage), and collision (only accidents). It is important to choose the protection level that best meets your needs. For instance, if you only use your leased car for commuting purposes and never venture off the path, then a liability policy may be sufficient. However, if you plan on using your leased car for weekend getaways or occasional road trips across state lines, then a collision policy would be more appropriate.

The dollar limit – Certain policies have a dollar limit specified within them, which means that no matter how much money you spend on repairs or damages during your coverage period, the policy will not increase your monthly premium.

The term – Most policies have a term of 12 to 36 months.

Once you have evaluated all of the available lease-car insurance policies, you can start to figure out what type of rate you are likely to receive. There are a number of websites that offer free comparisons of rates and policies, so it is worth checking out several sites before making a decision.

Conclusion

Leasing a car can be a great way to get the latest model without spending a fortune, but it’s important to understand that you may need to carry insurance in case of an accident. Make sure you consult your lease agreement and contact your insurer to see if you are required to have insurance on your leased car.