Car Insurance for Leased Cars

Reader’s Question:

Is car insurance more expensive when leasing a vehicle?

John

It generally will help to make your vehicle insurance more costly or more affordable if you lease an automobile than having purchased the vehicle straight up with no lease or loan in it. If you are financing an automobile and therefore a lien holder on the automobile isn’t a rating element for car insurance firms.

Insurance providers might ask you through the application procedure should you have a loan or lease on the car though to try to evaluate which insurance coverages you’ll need for the automobile. Lease cars usually need higher car insurance limits. The typical requirements for leased automobiles are Bodily Injury Liability and Property Damage Liability. Additionally physical damage coverages of Collision and comprehensive are needed with a deductible of a maximum of $500.

Because higher Liability limits you may then decide to buy if you owned the vehicle on your own as well as Collision and comprehensive must fulfill the lessor this might make buying an automobile insurance policy for the leased vehicle more costly for you. On this circumstance a few may see that a leased automobile is more expensive for car insurance then a vehicle you own with no lien holder.