How to Insure a Leased Car

A leased car needs to be insured the same way as a vehicle you purchase. The leasing company usually mandates what minimum coverage is permitted. Expect to insure a leased car with both comprehensive and collision coverage with deductibles under $1000. Some leasing companies set minimum liability limits too such as 100/300/100. 

How will the leasing company know my coverage limits?

In order to be insured properly, you need to have your lease company listed as loss payeeand additional insured. Listing the lease company gives your insurance carrier permission to send notification of a new policy, policy renewal, and vehicle coverage changes directly to them. It will also list the leasing company on any claim checks paid out for a total loss. If you fail to list the lease company properly, they can purchase third party insurance and send you the bill.

Is special coverage required for a lease?

Like mentioned earlier, leasing companies can require specific minimum limits of coverage in the lease agreement. Often an additional required coverage is gap insurance. Gap insurance protects you against an out of pocket expense in case of a total loss. Check whether gap insurance is automatically added to your lease or if it needs to be listed on your car insurance policy.

Tips

• Remember to tell your insurance agent your car is a lease
• Get the appropriate insurance correspondence address of the lease company to your agent
• Make your payments on time to avoid late payment notifications being sent to the lease company