If you’re planning to lease a car, it’s best to bear in mind insurance costs and determine the minimum car lease insurance requirements you need to purchase. Your leased car belongs to the lease company, and this company would like to ensure that their investment is covered should you have an accident that damages or destroys the vehicle. They will also want you to have insurance coverage if you’re found at fault in an accident, as it would protect the lease company from being partly responsible for the damages. They would thus require you to purchase the minimum car lease insurance, to cover car damage and possible personal injury.
Car lease companies require you to carry comprehensive and collision coverage. This is because the lease company wants to recover the cost of replacement of the vehicle, should you damage it. Comprehensive and collision coverage pays for losses caused by fire, theft, vandalism and collisions with animals. You’re required to have comprehensive coverage and collision insurance with a maximum $500 deductible.
Car lease companies require you to carry personal liability coverage. The company might be involved in liability issues if someone seated in the leased car is hurt at the time of an accident. To avoid this, the amount of coverage required is $100,000 per person and $300,000 per accident. You are also required to carry minimum liability coverage of $50,000 towards property damage.
The cost of insuring a leased vehicle is at least 4 times higher than the state’s minimum requirement. You can compare quotes from different insurance companies, ask for discounts that you may qualify for and adjust your coverage to protect yourself.