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Insurance for a leased car?

Insurance for a leased car is a crucial consideration for both the lessee (the person leasing the car) and the lessor (the leasing company). When you lease a car, the leasing company often requires you to have specific insurance coverage to protect their investment and meet their contractual obligations.

 

Typically, the following types of insurance are required for a leased car:

  1. Liability Insurance: This coverage is usually required by law and helps cover the costs if you’re at fault in an accident that causes injury or property damage to others.

  2. Comprehensive Insurance: Also known as “comp” insurance, this covers damage to your leased car from events like theft, vandalism, natural disasters, and collisions with animals.

  3. Collision Insurance: Collision coverage helps pay for repairs to your leased car if you’re in an accident, regardless of who’s at fault.

  4. Gap Insurance: Gap insurance is often recommended for leased cars. It covers the difference between what you owe on your lease and the car’s actual cash value in case the car is totaled or stolen.

  5. Uninsured/Underinsured Motorist Coverage: This helps protect you if you’re in an accident caused by a driver who doesn’t have enough insurance coverage or is uninsured.

The leasing company might have specific requirements regarding coverage limits and deductibles. It’s essential to thoroughly read your lease agreement and discuss insurance requirements with the leasing company before finalizing the lease. Additionally, while the leasing company might require certain coverage, you also have the freedom to enhance your policy with additional coverage if you wish.

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