Updated: Sep 1
If you are currently in the process of looking for a car, you are probably facing the age old question of should I lease or buy? Leasing is a better option for those who like driving new vehicles and having lower payments but there ‘s some things you should know first. All cars need insurance but there are certain specifications as to what is required based on whether you lease or buy.
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?
Well actually the type or amount of insurance you have is dependent on the state. There is 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 trade off 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. So make sure you weigh out your options before making the decision. If you or a loved one are ever in an accident call the attorneys that want you to know as much as possible. Call today for your free consultation at 866-954-MORE.