Updated: Mar 22
Leased cars can require you to have liability insurance coverage, gap insurance coverages
If you buy a car, you will typically be required to have comprehensive and collision insurance coverage. This type of insurance will cover damages to your car regardless of who caused the accident. However, if you lease a car, the leasing company will usually require you to have liability insurance coverage, which covers damages you cause to other people or their property. The leasing company may require you to have gap insurance, which covers the difference between the actual value of the car and what you still owe on the lease if the car is totaled in an accident.
It's important to consider the insurance requirements for both leasing and buying before making a decision, as insurance costs can add up and significantly affect your monthly expenses. It's also a good idea to speak with an insurance agent to understand the details of each type of insurance and what type of coverage is best for your situation.
What insurance coverage am I required to have if I lease a car?
Typically speaking, leasing companies require you to have comprehensive and collision coverages. Parts of your insurance, such as your bodily injury limits, may be set higher, to plans such as $100,000 per individual -$300,000 per accident coverage. You also have to set up property damage liability coverage along with those previous insurances.
What does collision coverage cover?
Collision coverage pays for damages caused by an accident. These things include the other vehicle involved in the accident, hitting a barricade, tree, etc. if you are at fault. These coverages protect you even if you caused the accident.
What does comprehensive coverage cover?
This coverage protects your vehicle from events outside of your control. Meaning it will cover you for things such as bad weather, theft, and nature.
What does the state of Florida require for insured leased cars?
Actually, the type or amount of insurance you have is dependent on the state. There are no different set of requirements a state will give you based on whether you lease or buy a car.
Some things you should know about what the state of Florida requires…
Bodily Injury coverage is not required in the state of Florida. Unlike other states, Florida doesn’t require the at-fault party to cover the other person's injuries.
Florida is a No-Fault state.
Every person that drives a motor vehicle is required $10,000 of Personal Injury Protection coverage as well as $10,000 of Property Damage coverage minimum.
Will my insurance be more expensive for a Leased Vehicle?
Since a lot of the requirements for a leased vehicle are greater, it can cost more than a bought or financed vehicle when it comes to insurance. The benefit of leasing a car is a lower monthly payment, so it's a tradeoff when you decide to go that route. A lot of this information gets determined by your lessor as they may require you to have a certain deductible amount for collision and comprehensive damage.
So now, given all of that information, you have become more aware of what a lease truly means for you as a motor vehicle owner. Whereas your monthly payments may be lower, your actual insurance may be more costly than if you bought the car. Make sure you weigh out your options before deciding. If you or a loved one are ever in an accident, call the attorneys that want you to know as much as possible. Call Demesmin and Dover Law Firm today for your free consultation at 866-954-MORE (6673).