You will still have to purchase your own automobile insurance policy. The lender will require you to purchase both collision and comprehensive coverages in addition to others that are required by your state, most commonly an auto liability insurance. Collision coverage will cover the cost of any damages done to the vehicle resulted from an accident done by another vehicle or an object, while a comprehensive coverage will cover the losses that have caused damage to the vehicle, but will not cover those that are collisions with another vehicle or object, such as an animal, car theft, or fire damage.
The company that you are leasing the car from may also need you to have a “gap” insurance. A gap insurance refers to if you are caught in an accident where your leased car has been damaged without any hopes of repairing to its original state or has been totaled, this will result in the ‘gap’ balance different between from the funds that you still owe the dealer and also the funds that you’ll receive from the insurance company.
The cost of having a gap insurance will be rolled into the payments for the car lease. But you don’t necessarily need to purchase a gap policy, the automotive dealer will generally purchase a master policy directly to give coverage to all the cars that are set for leasing, thus charging you a “gap waiver”. This also means that if the leased car has been totaled, you won’t be required to pay the gap amount.
Still, it is best to own an automotive insurance if you are a driver. Liberty Automotive Plans provides flexible plans and payment services that are made convenient for customers regardless of their budget and their type of vehicle.