If you’re leasing a car your lessor (the leasing company) is typically responsible for insuring it. You may be able to purchase your own insurance policy and waive the one that comes with the lease but you’ll need to check with your lessor first.
If you decide to purchase your own insurance make sure it meets your state’s minimum coverage requirements and that it covers any special equipment on your car such as an after-market stereo system. You’ll also want to make sure it covers any extra mileage charges you may incur.
Be sure to keep your insurance policy up to date and pay your premiums on time. If you don’t your lessor could terminate your lease.
Who is responsible for paying the insurance on a leased car?
The lessee is responsible for paying the insurance on a leased car.
How much insurance is required on a leased car?
The lessee is required to maintain full coverage insurance on a leased car.
Who is responsible for damage to a leased car?
The lessee is responsible for any damage to a leased car.
Who is responsible for repairs on a leased car?
The lessee is responsible for any repairs needed on a leased car.
Can the lessee waive the insurance requirement on a leased car?
No the lessee cannot waive the insurance requirement on a leased car.
What happens if the lessee does not maintain insurance on a leased car?
If the lessee does not maintain insurance on a leased car the lessor may terminate the lease agreement.
What happens if the lessee gets into an accident in a leased car?
If the lessee gets into an accident in a leased car the lessee is responsible for any damages.
What happens if the leased car is stolen?
If the leased car is stolen the lessee is responsible for the entire leased amount.
What is gap insurance?
Gap insurance is insurance that covers the difference between the actual cash value of a vehicle and the balance of the lease or loan.
Is gap insurance required on a leased car?
No gap insurance is not required on a leased car.
What is the purpose of gap insurance?
The purpose of gap insurance is to protect the lessee from having to pay the difference between the actual cash value of a vehicle and the balance of the lease or loan if the vehicle is totaled or stolen.
Who pays for gap insurance?
The lessee pays for gap insurance.
Is there a limit to how much gap insurance will pay?
Yes gap insurance will only pay up to the actual cash value of the vehicle.
How much does gap insurance cost?
The cost of gap insurance depends on the make and model of the vehicle the term of the lease and the lessee’s credit score.
Where can I get gap insurance?
Gap insurance can be purchased from an insurance company a leasing company or a dealership.
