What You Need to Know About Leased Car Insurance

The leased car market has grown significantly in the past few years. Whether it is because monthly payments are lower than ever or people just want to switch cars more frequently, it is now more common than ever to lease a car.

For many people making the switch from car ownership to leasing, figuring out how exactly leased car insurance works can be tricky.

Here’s what you need to know aboutleased car insurance so you can make sure your vehicle has the appropriate coverage.

Basic State Requirements

Before any additional insurance the lessor may require, each state has minimum coverage requirements drivers must meet. The main insurance that is needed is liability insurance for both other people you might injure and property that you might damage.

While some states require more coverage for further incidents, this is limited liability insurance is consistent across the board.

Coverage Required by the Lessor

Most likely, the company that leases the car out to you will require more insurance on top of the state mandates. This is simply to ensure that their car will remain in good condition when it comes back to them when the lease is up.

These supplemental insurance policies usually include both collision and comprehensive coverage for your car. Collision insurance deals with any crashes or incidents you might have on the road, while comprehensive insurance deals with outside incidents like theft, weather damage, or other freak accidents.

Car lessors will also usually require what is called gap insurance. This insurance will cover the difference between what the insurance company is willing to cover for a car after an incident and what you owe on the vehicle.

Know What Insurance You Need

The world of leased cars is relatively new and can be difficult to understand for newcomers. Because of this, you might feel that a leasing company is taking advantage of your confusion by talking you into insurance policies you don’t need.

Here at Corkhill Insurance Agency, we can help you determine what your lessor requires and build you a plan that sufficiently insures you and your vehicle.

Call us today at 407-898-8891 to learn more information and receive a free quote.