{"id":2537,"date":"2023-11-04T03:19:56","date_gmt":"2023-11-04T08:19:56","guid":{"rendered":"https:\/\/going-places.thegeneral.com\/car-insurance-leased-car\/"},"modified":"2025-08-27T10:04:05","modified_gmt":"2025-08-27T15:04:05","slug":"car-insurance-leased-car","status":"publish","type":"post","link":"https:\/\/www.thegeneral.com\/going-places\/blog\/car-insurance\/car-insurance-leased-car\/","title":{"rendered":"Car Insurance for Leased Vehicles"},"content":{"rendered":"\n

If you want a car with modern safety features but a new car is out of your price range, leasing\u202fa vehicle is an option. Leasing has gained popularity in recent years as car prices have increased, and more than 25% of all car sales in the last year were leased vehicles. While it\u2019s common for leased vehicles to have a mileage limit\u2014a limit to the number of miles you can drive per year\u2014that isn\u2019t a concern for many drivers who are still working from home.<\/span> <\/span><\/p>\n\n\n\n

If you lease a car, you\u2019ll be required to meet your state and your dealership or leasing company\u2019s minimum requirements for\u202f<\/span>car insurance<\/span><\/a>. Most dealerships require that you carry full coverage auto insurance while leasing one of their vehicles. Full coverage car insurance is pricier than <\/span>liability-only insurance<\/span><\/a>, but you can still find affordable car insurance for your leased vehicle. Learn the details around car insurance for leased vehicles and how to save money on comprehensive coverage. <\/span> <\/span><\/p>\n\n\n\n

What Is Car Leasing?<\/span><\/b><\/h2>\n\n\n\n

Leasing a car means making monthly payments to drive a car for a set period. Leasing is usually cheaper than financing a car, but the driver must return the car at the end of the leasing period. If you decide to lease a car, you can lease it directly from the dealership, or a leasing company can buy the car from the dealer and lease it to you.<\/span> <\/span><\/p>\n\n\n\n

What Type of Insurance Do You Need for a Leased Car?<\/span><\/b><\/h2>\n\n\n\n

While your state might only require a minimum amount of liability coverage, your dealership or leasing company will require full coverage auto insurance and could ask you to raise your liability limits. While insurance guidelines vary for each company, you\u2019ll need to meet your company\u2019s insurance\u202frequirements during your entire leasing period. Canceling insurance on a leased car is unadvisable, as it could lead to your vehicle being repossessed. <\/span> <\/span><\/p>\n\n\n\n

What\u2019s considered full coverage insurance varies by state and company. In general, if you get into an accident with your leased vehicle, the dealership or leasing company wants you to have the requisite insurance needed to restore the car to its pre-crash state. This usually requires both\u202fcomprehensive<\/span>\u202f<\/span>and collision auto insurance.<\/span> <\/span><\/p>\n\n\n\n