Catherine C Ford, Writer
@catherine_ford_1
Yes, you need car insurance before you lease a car because dealerships will require proof of insurance before you drive the vehicle off the lot. If you currently have insurance, you can bring your insurance card when signing the paperwork for the lease. If your insurer offers a grace period for new cars, you’ll have more time to add the leased vehicle to your policy, though you may need to already have full coverage.
If you do not have car insurance, you’ll need to call an insurance company or go to their website and provide information about yourself and the car, including the vehicle identification number, year, make and model, in order to get a policy. The dealership may recommend an insurer to you as well, but it’s best to comparison shop before committing.
Either way, you will need to have insurance coverage before you drive your leased vehicle home.
Types of Auto Insurance Required for a Leased Car
- Bodily injury liability insurance (required in most states)
- Property damage liability insurance (required in most states)
- Uninsured/underinsured motorist coverage (if required by state law)
- Personal injury protection (if required by state law)
- Medical payments coverage (if required by state law)
- Collision insurance (if required by your lender or lessor)
- Comprehensive insurance (if required by your lender or lessor)
- Gap insurance (if required by your lender or lessor)
For more information, check out WalletHub’s guides on the major types of car insurance and how much car insurance you need.
People also ask
What are the pros and cons of leasing a car?
Hi! Michael's points below are great. This Edmunds article presents a few more pros and cons.
Leasing tends to get a bad rap, but for people who LOVE cars and like to drive the newest and best, it can be a great option. You can often get "more car" for a lower monthly payment. It is try that can cost more in the long run than buying, but if cars are your "thing," the cost may be...
read full answer by Kathryn B. Hauer, CERTIFIED FINANCIAL PLANNER (TM)Did we answer your question?
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