Car Lease Insurance Requirements

Car lease agreements and insurance.

Car lease insurance requirements. When you have a leased car you usually can not buy the minimum car insurance required by law. That s because you need to meet minimum auto insurance standards wherever you re leasing as well as any additional requirements your lessor has like comprehensive and collision coverage. If the accident is a result of your actions collision coverage can help cover the costs you incur. The lease agreement will contain clauses that require you to purchase collision and comprehensive insurance coverage on the car.

Most car lease contracts will require you to have comprehensive and collision coverage with a maximum deductible of 500. State laws govern minimum requirements for all car owners but leasing companies as the titled owners of the vehicles involved get. Car insurance requirements for leasing a car. If you re insuring a car you own you can choose any level of cover that best suits your needs.

Yet even these cheaper leases require additional car insurance. You will also be responsible to mercedes benz financial services for an amount equal to your policy s deductible. When you lease a car you have to buy auto insurance even though you don t own the vehicle. To make sure you have enough coverage in each component talk to a representative at policygenius about your coverage needs and what options are available to you at your budget requirements.

Some coverages may be required by law or by your lender while other types of insurance may be optional for a financed or leased car. When you pair comprehensive coverage with collision coverage you effectively possess full coverage simply put collision insurance helps you. These minimum requirements for each state can be found at the state insurance commissioner s website we have included them here for your easy reference just scroll down to your state and check it out. This protection applies as long as your insurance is in place at the time of the loss and your monthly lease payments are current up to the time mercedes benz financial services receives the proceeds from your insurance company.

If you re deciding whether to buy or lease your next car it s important to understand what insurance coverages may be required in either situation. State minimum insurance requirements are the car insurance requirements for each state by law for their residents.