BLOG
Latest Industry News
July 29, 2019
Posted by VIP Lease

CAR INSURANCE GUIDE FOR A LEASED VEHICLE

Car insurance guide: when you rent a car, you must purchase car insurance, even if you do not own the vehicle. That’s because you must meet the minimum auto insurance standards, wherever you are, as well as any additional requirements imposed by your lessor – such as comprehensive coverage and collision insurance. These additional requirements can make renting a car more expensive than expected.

 

REQUIREMENTS BY THE STATE

When renting a car, coverage is mandatory; you cannot leave the field without it. Since auto insurance requirements are set at the state level, the amount of coverage you need depends on the state where your car will be registered. Your leasing company may also have some insurance, and some models will be more expensive to insure than others.

In addition, you must indicate the leasing company as additional insured and beneficiary. This means that the lessor, as the owner of the vehicle, receives payment from the insurance company for any damage to the insured vehicle.

Automobile insurance requirements may vary from state to state. The most common is liability insurance, which takes two main forms:

  • Liability coverage for personal injury: This covers medical expenses for injuries to persons other than your own, resulting from an accident. A minimal sum worth $25,000 for each person and $50,000 for each accident case is a typical instance.
  • Liability Coverage for Property Damage: This covers damage to the property of others in the event of an accident. A minimal sum worth $10,000 per accident is a typical instance.

Some less common requirements are coverage of uninsured/underinsured motorists and injuries. Here you will find the minimum requirements for auto insurance in your state.

 

REQUIREMENTS BY THE LESSOR

Leasing companies will often require that any damage caused to a rented vehicle be covered by your auto insurance policy. Therefore, they will often require:

  • Collision cover: This covers damage to your car caused by a collision with an object or other vehicles.
  • Full coverage: This covers damage to your car that is not caused to an object or other vehicles. These are often called “acts of God” events, such as theft, damage from falling objects, and damage caused by natural disasters.

Some lessors also require that your insurance policy provide higher limits for liability insurance than the minimums set by the state. As a general rule, leasing companies require coverage of USD 100,000 per person and USD 300,000 per accident, as well as USD 50,000 in property damage insurance. In addition, your lessor may require insurance or a maximum deductible – say $ 500 to $ 1,000 – in the event of a collision and full coverage.

 

INSURANCE GAP FOR A CAR IN LEASE

The gap insurance covers the difference between the amount due and the actual value of a vehicle, which can be requested by your lessor. It is useful primarily for new vehicles that depreciate quickly once out of the dealer lot and usually makes no sense if you rent a used car. There is often a limit to the maximum benefit you can receive from gap insurance; It can range from $ 30,000 to $ 125,000, depending on your policy.

The gap insurance offered by your lessor may consist of additional monthly fees or a one-time upfront fee. If you purchase auto insurance, the cost of coverage is added to your monthly premium.

 

VIP Auto Lease
The Best Lease Deals in NY, NJ, & CT, Guaranteed.

* Lease prices may reflect conquest, rebates, one pay or loyalty incentives.
   Please inquire for more information. VIP Auto Group is not franchised dealer.
* Zero down leases are subject to state taxes, bank fees, title fees, first month   
  payments and registration fees.
View Deals now
VIP Auto Lease is a full service car leasing company that puts the power of buying a new car in the customer’s hands. Since opening our doors in 2007, we’ve made sure that our promise stays true: no pushy salespeople, no haggling, and a guarantee that to our dear customers that we will provide the lowest possible price with industry class service. We offer nationwide delivery and 100% virtual or in-person ordering (your choice). We are frequented by residents of the greater Tri-State (NY, NJ & CT) area as well as Nassau & Suffolk county Long Island. We service all of New York City including Brooklyn, Queens, Bronx, Manhattan & Staten Island, NY. So Wherever and whoever you are, feel free to take advantage of our guaranteed best prices on ANY make & model now.

Review From Ashley Smith: This was my first experience using a leasing company. In the past, I leased my cars directly through the dealership and always felt that I didn’t receive a fair price. I had such a pleasant experience with VIP Auto Lease from the first time I called to when my car was delivered. Michael Jeffries was a pleasure to work with. He was very responsive and able to get me a great deal. He made the leasing process smooth and easy. I was so impressed there were no hidden fees and that the car was delivered right to my house! I will definitely use VIP Auto Lease again in the future! Thank you again!

Aggragate Rating 4.9/5 Out Of 899 Reviews

Read & Rate Us Now By Clicking Here

© 2021- All Rights Reserved, VIP Auto Lease and brands are the property of their respective owners.
OFFICE HOURS
Mon - Fri / 10:00AM - 7:00PM
Saturday / 10:00AM - 4:00PM
Sunday / Closed
Address
1204 Hylan Blvd,
Staten Island, NY 10305
Phone
718-477-7888
Email
info@viplease.com
Quick links
© 2021- All Rights Reserved, VIP Auto Lease and brands are the property of their respective owners.
chevron-down
Quote Cart
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram