Do You Have To Get Insurance For Leasing a Car

Leasing a car is a great way to get a brand new car without breaking the bank. But when you lease a car, you’ll also need to consider insurance. Do you have to get insurance for a leased car? This question is often asked by car shoppers who are considering leasing. In this article, we’ll break down the basics of leasing a car and discuss the types of insurance that may be necessary for a leased vehicle.

What Is a Leased Car?

Leasing a car is an agreement between a borrower and a lender wherein the lender provides a car for the borrower to use for a specified period of time, usually two to four years. At the end of the lease, the borrower can either return the car or purchase it. The primary benefit of leasing a car is that you can get a new car without being locked into a long-term contract and without making a large down payment. Leasing also has a lower monthly payment than buying, and you can get a newer car with the latest features at a fraction of the cost.

Do You Need Insurance If You Lease a Car?

The short answer is yes, you do need insurance if you lease a car. As per the agreement between you and the lender, you will be required to carry a certain level of insurance on the leased vehicle. This is to ensure that the vehicle is adequately covered in the event of an accident or other damage. The details of the insurance coverage vary depending on the lender, but generally speaking, you will be required to carry liability coverage, as well as comprehensive and collision coverage. In some cases, you may also be required to carry gap insurance, which covers the difference between what is owed on the lease and the current value of the vehicle.

What Types of Insurance Should You Consider?

When it comes to securing insurance for a leased car, there are several types of coverage you should consider. Liability coverage protects you in the event that you are held responsible for another person’s injuries or property damage. Comprehensive and collision coverage helps protect your vehicle in the event of an accident or theft, while gap insurance helps cover the difference between what is owed on the lease and the current value of the vehicle. You should also consider additional coverage, such as personal injury protection, uninsured motorist protection, and rental car reimbursement coverage. These types of insurance can help provide additional protection against injuries and repairs, as well as give you peace of mind should an accident occur.

How Much Does it Cost to Insure a Leased Car?

The cost of insuring a leased car will vary depending on a number of factors, such as the age of the vehicle, its make and model, the level of coverage chosen, and the driving history of the borrower. Generally speaking, however, basic liability coverage for a leased car will cost between $50 and $100 per month, while collision and comprehensive coverage may cost up to double that amount. It’s important to shop around for the best rates when insuring a leased car. The best way to do this is to compare rates from multiple insurance companies, factoring in coverage levels and discounts offered.

Tips for Finding Affordable Car Insurance for a Leased Vehicle

Finding affordable car insurance for a leased car can be a challenge. Here are a few tips that can help you find the right coverage at a rate that fits your budget:

• Consider a higher deductible. Knowing you have to cover a larger portion of repairs out of pocket may help you save money on your premiums.
• Shop around for the best rates. Compare rates from multiple insurance companies to ensure you’re getting the best coverage for the best rate.
• Look for discounts. Many insurers offer discounts for things like good driving records, multiple cars, and even for being a loyal customer.
• Consider dropping added coverage. If you are comfortable covering the cost of repairs out of pocket, you may be able to save money by dropping certain coverage.

The Bottom Line: Do You Have To Get Insurance For a Leased Car?

Yes, you do need to get insurance for a leased car. As per the agreement between you and the lender, you must carry a certain level of insurance on the leased vehicle, including liability coverage, comprehensive and collision coverage, and often gap insurance. The cost of insuring a leased car varies, but you can save money by shopping around for the best rate, looking for discounts, and exploring higher deductible options.

Conclusion

Leasing a car is a great way to get behind the wheel of a new car without breaking the bank. It is important to understand, however, that you will need to secure insurance for a leased car. Generally speaking, you will need liability coverage, comprehensive and collision coverage, and perhaps gap insurance. You can save money on your premiums by shopping around, looking for discounts, and considering higher deductible options.