Insurance Options for Leased or Financed Vehicles
You have many coverage options when it comes to purchasing auto insurance. Some people choose to have the state minimum requirements, while others want more coverage protection.
If you are looking to lease or finance your next vehicle, it is important to understand what you most likely will need.
State minimum requirements include two coverages:
Bodily injury & property damage: this coverage only protects others if you are involved in an at-fault accident. This coverage will pay for damage you caused to a person’s property & if your at-fault accident caused an injury to anyone outside your vehicle and often a passenger in your vehicle.
Bodily injury & property damage coverage does not provide any coverage for your injuries or damages caused to your vehicle. State minimum requirements vary by state so depending on where you live, additional coverage may be required besides just bodily injury & property damage.
If you are leasing or financing a vehicle, you most likely will be required to carry more than just state minimum requirements on your auto insurance policy.
If you currently have state minimum requirements on your auto insurance policy but want to lease or finance a vehicle, your auto insurance premium will typically increase in cost since you need to purchase more coverage.
Additional auto insurance coverage that tends to be required when you lease or finance a vehicle:
Comprehensive coverage: this coverage can help pay to repair or replace your vehicle if it is vandalized, or damaged from a fire, wind, fallen tree, flood, lightning, or other covered weather-related incidents. It can also pay for damages caused by hitting an animal or if your car is stolen.
Collision coverage: If you cause an at-fault accident where your vehicle is damaged, this coverage can help pay for repairs or the replacement of your vehicle should it be deemed a total loss. This could include colliding with another vehicle, a guardrail, or fence.
Depending on who you lease or finance your vehicle through, you may have specific policy limit requirements you need to purchase. For example, bodily injury limits may need to be $100,000/person and $300,000/accident. To make things easier for you, ask your lease or finance company what liability limits you need to purchase. This will allow an insurance agent to provide you with the most accurate auto insurance quote.
Other coverages we recommend:
There are additional coverages that can help protect you if you get into an accident. Uninsured motorist coverage, medical payments, personal injury protection, and more. If you call us for a quote, we will explain all of your options.
Call Our Agency When it’s Time to Shop for Auto Insurance
A local insurance agent is one of the best ways to find affordable auto insurance. Especially if you currently have state minimum auto insurance, we will shop all of our insurance carriers to find the best rate.
We also have access to car insurance discounts, which will help lower your monthly or yearly premium. Call, email, or fill out a quote form on our website to get a free auto insurance quote.