Insuring Your Leased Vehicle: What You Need to Know

Leasing a car can be a convenient and affordable option for drivers in Lilburn, GA, but it comes with some unique insurance requirements. When you lease a vehicle, you don’t technically own it, which means the leasing company will want to protect its asset. As the driver, it’s your responsibility to maintain the appropriate coverage throughout the lease term.

Here’s what to know before you hit the road in your leased car.

Insurance Requirements for Leased Vehicles

Most leasing companies require more than just the state’s minimum liability coverage. In Lilburn, GA, the minimum includes bodily injury and property damage liability, but that’s often not enough for a leased vehicle. You’ll likely need:

• Comprehensive and collision coverage—These protect against theft, vandalism, weather damage and accidents, whether or not you’re at fault.

• Higher liability limits—Leasing companies may require limits above the state minimum to ensure adequate protection in case of a serious accident.

• Gap insurance—This optional (and sometimes required) coverage helps pay the difference between what your car is worth and what you still owe on the lease if it’s totaled. Some leases include gap insurance automatically, but others don’t, so it’s important to check.

What Happens If You Don’t Have the Right Coverage?

Failing to carry the required insurance could put you in breach of your lease agreement. That could result in fines, additional charges or even early termination of the lease. It may also leave you financially vulnerable if you’re in an accident.

Protect Yourself and Your Lease

Before signing a lease, make sure you understand the insurance requirements specific to your leasing company. Talk to a local insurance agent who can help you build a policy that meets both legal requirements and lease obligations.

Need help reviewing your coverage options? Contact us today to get a customized auto insurance quote for your leased vehicle in Lilburn, GA.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.