How to Manage Auto Insurance for Leased Vs. Owned Vehicles

When you own a vehicle outright, you can choose the type and amount of insurance coverage you want if it meets your state’s minimum requirements. However, when you lease a vehicle, the leasing company typically imposes specific insurance requirements to protect their investment.

Insurance Requirements for Leased Vehicles

Leasing companies usually require higher levels of coverage compared to what you might choose for an owned vehicle. This often includes:

• Comprehensive and collision coverage—These policies can cover damage to the vehicle from accidents, theft, vandalism and natural disasters.

• Gap insurance—This can cover the difference between the vehicle’s actual cash value and the remaining balance on the lease if the car is totaled or stolen.

Insurance Considerations for Owned Vehicles

When you own your vehicle, you have more flexibility in choosing your coverage. While you still need to meet state minimum requirements, you can tailor your policy to fit your needs and budget.

Depending on your car’s value and your financial situation, your agent may recommend full coverage auto insurance, including comprehensive and collision coverage.

Cost Differences

Insurance premiums for leased vehicles can be higher due to the additional coverage requirements. However, owning a vehicle can also come with higher costs if you purchase comprehensive and collision coverage, especially for high-value cars.

Insurers consider many factors when setting premiums, so working with your agent to evaluate multiple auto insurance quotes from reputable Florida insurers is crucial.

Contact Us

Contact Casual Insurance Group in West Palm Beach, Florida, for an auto insurance quote.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.