Insurance For Leased Car
Whether you're leasing a car or financing a car, one thing will not change: you need car insurance coverage. A leased car requires at least the state minimum amount of insurance coverage (or financial responsibility) to stay legal, so leasing companies might even require higher than the state minimum, which is the lessee's responsibility.
The cost of car insurance for a leased car is higher than the cost of car insurance for a vehicle purchased through a traditional car loan. However, this increase has to do with higher coverage requirements than just the mere fact of leasing a car.
Taking out lease car insurance is the same as any other insurance product. But you'll need to make it clear to your insurance provider that it's for a lease vehicle, and let them know the terms of the lease.
This calculator helps you decide whether it is better for you to buy or lease a car. It assumes you will not exercise the purchase option at the end of a lease. However, at the end of a vehicle loan, you will own the car. Two factors included in the calculation are car depreciation and financing expenses.
Paying for a new or used vehicle is one of the most significant expenses individuals and families incur, other than housing costs. If you find the prospect of saving up for the full price of a car upfront or securing an auto loan daunting, you may want to consider leasing a vehicle -- through leasing a car is not for everyone.
What Happens If You Wreck a Leased Car? There are some very specific things that need to be done if a leased car is involved in an accident. First, call 911 and report the accident to the police, even if relatively minor — and even if you are at fault. A police report is important in resolving disputes and establishing facts and fault in an accident situation.