When Leasing A Car Does It Include Insurance

When Leasing A Car, Does It Include Insurance

When leasing a car, insurance is not included in the lease agreement. 

You are responsible for finding and purchasing your own car insurance after signing the lease while still making your lease payments. 

However, some leasing companies may automatically include gap coverage in your lease payments.

Leasing companies typically require more car insurance than the state liability insurance minimums. 

Most leasing companies will require you to have full auto insurance coverage before you start driving their cars. This includes:

  1. Collision coverage: Pays for damages to your vehicle from another car or object.
  2. Comprehensive coverage: Covers damages to your car caused by events outside of your control, such as weather, acts of nature, theft, vandalism, fire, and animal accidents.
  3. Higher liability limits: Many lessors will require you to carry higher bodily injury liability limits, such as $300,000 per accident, and a set amount of property damage liability coverage, such as $50,000.

In addition to the above coverages, you may also need gap insurance, which covers the difference between your car’s value and the amount you still owe on your lease. Some dealerships might automatically include gap insurance when you lease a car.

To ensure you have the appropriate coverage, it’s essential to check your state’s minimum car insurance requirements and the specific requirements set by your leasing company. 

You may also need to list your lessor on your insurance policy as an “additional insured” party and a “loss payee.”In summary, insurance is not included when leasing a car, but you are required to obtain coverage that meets both your state’s and leasing company’s requirements.

This typically involves purchasing collision, comprehensive, and higher liability limits, as well as potential gap insurance.

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Steve is a former licensed car dealer located in the State of Florida.  He has many years of experience buying, selling, and working on cars mechanically and started Autohitch to help buyers and Sellers navigate the complex lands of Car Buying.