When you lease a car, insurance is required; you can’t drive it off the lot unless you have it. The quantity of insurance coverage you need depends on the state in which you plan to register your vehicle. Depending on the model, your leasing company may require additional insurance coverage, and certain models will cost more to insure. Additional insured and loss payee must be the leasing firm. That is to say, any insurance company compensation for damage to the insured cargoes to the lessor because the lessor is the owner of the vehicle. State-by-state variations exist in the regulations for automobile insurance. Liability insurance is the most frequent type, and it comes in two flavors: Medical bills for other people involved in an accident are taken care of by Bodily Injury Liability Coverage. At least $25,000 per person and $50,000 per accident are standard. Protection against damage to other people’s property as a result of an accident with this type of liability coverage. The average cost of an accident is around $10,000. Automobile liability, as well as personal injury protection (PIP), are two less-commonly required coverages. State minimum liability insurance limits may not be enough for some lenders. Lease firms often require $100,000 in bodily injury liability insurance per person and $300,000 per accident, in addition to $50,000 in property damage liability protection. A $500 to $1,000 deductible for accident and full insurance can be required by your leaseholder, as well as gap insurance.
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