What Insurance Do I Need To Lease A Car?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Your relationship to the leasing company is the same as if you were financing the car.  Both the finance company and the leasing company will require that you carry liability insurance and physical damage insurance.  The combination is frequently called, “full-coverage.”  The leasing company is most concerned about the physical damage coverage.  The car is actually theirs.  They want you to return it in good condition.  They don’t want you to stop paying the lease because the car was damaged in an accident.
    Answered on February 26, 2014
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  2. 14231 POINTS
    Tom Sheehan
    Agency Owner, The Thomas G Sheehan Agency, 27 Glen Road Sandy Hook, CT 06482
    Auto Lease agreements include a requirement that you provide proof of auto insurance for that vehicle and yourself. The policy will need to include Physical Damage coverage for the car covering for losses that are due to accidents (collision) as well as any other loss (comprehensive). It may be possible that the maximum deductible allowed is $500.00. You will also need to have Liability insurance and usually at a limit of $100,000 per person, $300,000 per occurence for Bodily Injury and $50,000 for Property Damage. Finally, the policy must name the leasing company as lessor and loss payee.
    Answered on August 11, 2014
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