Insuring a Leased Car
Insuring a Leased Car If you lease a car, you still need to buy your own auto insurance policy. The auto dealer or bank that is financing the car will require you to buy collision and comprehensive coverage. You will need to buy these coverages in addition to the others that may be mandatory in your state , such as auto liability insurance. Collision covers the damage to the car from an accident with another automobile or object. Comprehensive covers a loss that is caused by something other than a collision with another car or object, such as a fire or theft or collision with a deer. The leasing company may also require "gap" insurance. If you have an accident and your leased car is damaged beyond repair, or "totaled," there's likely to be a difference between the amount that you still owe the auto dealer and the check you'll get from your insurance company. That's because the insurance company's check is based on the car's actual c...