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How Car Insurance Works for Leased Cars

Posted on 2023-04-13 17:06:09 by iNF
Auto Insurance Car insurance leased car insurance insurance requirements coverage options
How Car Insurance Works for Leased Cars

Leasing a car can be a great option for those who want a new vehicle without the commitment of buying. However, it's important to understand the insurance requirements and options for your leased car to ensure you're protected.

Insurance Requirements for Leased Vehicles

When you lease a car, you're required to have certain types of insurance coverage. These typically include liability insurance, collision insurance, comprehensive insurance, and gap insurance. Before you sign a lease agreement, make sure you understand the insurance requirements set by the leasing company.

Types of Car Insurance Coverage for Leased Cars

Liability insurance covers damages or injuries you may cause to others while driving your leased vehicle. Collision insurance covers damages to your leased car if you're in an accident. Comprehensive insurance covers damages to your car from non-collision events, such as theft or vandalism. Gap insurance covers the difference between what you owe on the lease and the car's market value if it's totaled or stolen.

Choosing the Right Insurance for Your Leased Car

When choosing the right insurance for your leased car, it's important to consider your driving habits, the value of the car, and your personal finances. You may also want to consider adding extra coverage for roadside assistance or rental car reimbursement.

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