If you’re leasing a car you’ll likely need more than liability insurance. Liability insurance is designed to provide protection for the other driver when you’re at fault. It covers the other person’s injuries as well as any property damage, and damage to the other person’s car. If you’ve never leased a car before, you might think this is adequate coverage because state law only requires auto liability coverage. However, many leasing companies require a driver to carry more coverage.
Our Maryland team at Carrie Polk Insurance Inc. aims to take the confusion out of what’s covered by various insurance policies. We serve the greater Prince Frederick and Waldorf, MD area.
What Kind of Auto Insurance is Required to Lease a Car?
You still have to carry full coverage auto insurance when you lease a car. Even though you’re not buying the car, liability coverage provides no protection/coverage for you or the car you are leasing. The other driver is the only beneficiary of an auto liability insurance policy. Anyone wanting to lease a car is required to meet the state minimum requirements for insurance, in addition to the requirements of the leasing company. Most leasing companies will require you to carry comprehensive and collision insurance in addition to the state-required liability insurance. In fact, many leasing companies require you to carry both comprehensive and collision insurance in addition to liability insurance that meets the 100/300/50 liability limits.
Leasing a car won’t affect how much you pay for insurance. However, it will affect the type of coverage you’re required to carry. You may only need liability coverage to meet the state’s minimum requirements, but your leasing company will require more to protect its investment. If anything happens to the car while you’re leasing it, comprehensive and collision insurance coverage insures that the car can be repaired or replaced.
Give Us A Call
If you’re interested in leasing a car and want to know what your insurance options are, call us at Carrie Polk Insurance Inc., serving the greater Prince Frederick and Waldorf, MD communities. We’d be happy to help you get the coverage you need.