It’s not out of the ordinary for leasing agents to require special coverage for leased vehicles. Such coverage is designed to protect you and your leasing company from damages and/or losses that could occur for the duration of the lease.
Without special coverage, you may find yourself on the hook for thousands of dollars if you’re involved in the accident that results in expensive repairs or a total loss of the vehicle.
If you decide to lease a car, you may be required by your leasing agreement to have the following auto insurance coverage in addition to the state-mandated liability limits:
- Comprehensive – Covers damage and/or losses caused by fire, theft, vandalism and other incidents other than a car accident. For example, if your car is damaged in a tornado or hurricane, comprehensive insurance will cover the cost of repairing the damage or, if necessary, replacement of the vehicle. This coverage is usually paired with collision insurance.
- Collision – Covers damage and/or losses if your car is damaged or destroyed an accident. Whereas liability coverage does not cover damage to your property, collision coverage will cover the costs of repair or replacement of your vehicle after the deductible is paid.
- GAP Insurance – In the event of a total loss, this coverage bridges the gap between the value of the vehicle and what you owe on your loan or lease. For example, if you owe $15,000 on your loan and the value of the car is $12,000, GAP coverage will take care of the remaining $3,000.
In addition to the above coverage, you can work with your independent agency to add additional coverage to your policy that will provide you with even more protection in case the unthinkable happens. We can also help you find the best coverage for your money by comparing insurance quotes online from multiple carriers. As a responsible driver, it falls on you to purchase the right types of coverage for your specific need.