This guide outlines what kind of insurance you need for a leased car. Signing a car lease may seem like a great deal because you get to drive a new car for less money than buying one But there's an extra cost you need to budget for—leased car insurance Car leases are popular among those who like driving new vehicles but don't want the higher payments that typically come with financing a car But whether you buy or lease, you need insurance coverage for your vehicle Nearly all lessors will require comprehensive and collision coverage on a leased car, and some will require liability limits above your state's minimums.
While car insurance for a leased or financed vehicle is not always more expensive, the minimum amount of coverage might not be enough Along with liability and gap insurance, find out what coverage you may need. Complete guide to requirements, costs & best rates 2025 you must carry insurance on a leased car Lessors typically require full coverage, which includes comprehensive and collision coverage Find out if you're overpaying for auto insurance below Insurance premiums for a leased car may be higher, however, because of the dealership's coverage requirements
If you lease a car, you’ll need to buy enough auto insurance coverage to legally drive in your state, along with any insurance your lesser requires. Key takeaways full coverage insurance (comprehensive + collision) is mandatory when leasing a vehicle Leasing companies require higher liability limits than state minimums to protect their investment Gap insurance is often required to cover the difference between your car’s value and lease payoff. Guide to car insurance for leased cars nearly all leasing companies require car insurance when you lease a vehicle
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