Insurance for Leased or Financed Vehicles

 

When it comes to owning a new vehicle, there are two ways in which you can go about obtaining one.  You can buy it, or you can lease it.  Buying the vehicle means that you are purchasing it and once it is paid in full, you own it outright.  Leasing a vehicle essentially means that you are paying for the vehicle that you use.  So with a lease, you are not paying the full price just what you use during a set time period. 

 

When you buy a vehicle and don’t finance it, you must insure it, but only for state-mandated liability coverage.  Insuring the vehicle itself against collision or theft is up to you.  When you finance or lease a vehicle, since technically you don’t own it, you may be required to carry full or additional insurance to protect the dealer and the bank.  Dealers and banks can require that you carry more insurance to protect their property through the course of the lease or until the vehicle is paid off, in the event of damage or it being stolen. 

 

If you are in the market for a new vehicle, you will want to consider all of your options before buying or leasing.  It is important to check the dealer requirements and the cost of a policy if you decide to lease or finance a vehicle. 

 

For a free quote on protecting your financed or leased vehicle with auto insurance, please contact an AIS Insurance representative.

 

This content is offered for educational purposes only and does not represent contractual agreements. The definitions, terms and coverages in a given policy may be different than those suggested here and such policy will be governed by the language contained therein. No warranty or appropriateness for a specific purpose is expressed or implied.