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What insurance do I need for a leased car?

When you lease a car, leasing companies usually require you to carry your own insurance. Knowing you have options can help you be ready for the unexpected with the right protection for your leased car.
December 19, 2023
2 min watch
Feeling protected with insurance on leased car
00:02:04 - 00:07:04
So you're leasing a car. What type of insurance do you need?

00:07:06 - 00:10:22
When you lease a car, leasing companies usually require you

00:10:22 - 00:14:14
to carry your own insurance on the car, even though you don't own it.

00:14:14 - 00:18:21
And leased cars need to be insured for full coverage, which typically means

00:18:21 - 00:22:15
comprehensive and collision insurance, plus any other coverage

00:22:15 - 00:26:02
required by your state. Here's how it works:

00:26:02 - 00:29:21
Comprehensive insurance could help cover damage to your vehicle

00:29:21 - 00:33:08
caused by unexpected events like bad weather.

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And collision insurance could help cover damage from things like hitting another vehicle.

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Both provide extra coverage in case anything goes wrong

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while you're driving your leased car. Another good idea for leased cars

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is guaranteed asset protection, also known as GAP.

00:50:03 - 00:54:13
Did you know that when a vehicle is totaled in an accident or stolen and not recovered,

00:54:13 - 01:00:21
you could owe more than the vehicle is worth? GAP is designed to reduce or eliminate the difference

01:00:21 - 01:04:02
between the insurance settlement and the loan balance.

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You see, comprehensive and collision insurance may not be enough

01:07:23 - 01:11:19
to cover what you owe on the lease if your car is totaled or even stolen.

01:12:00 - 01:14:14
Knowing you have options can help you be ready

01:14:14 - 01:18:19
for the unexpected with the right protection for your leased car.

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