Insuring a leased vehicle

What leases commonly require

• Higher liability limits than state minimums, often substantially
• Collision and comprehensive with a capped deductible
• The leasing company listed as lienholder or additional insured
• Coverage maintained continuously for the full term
• Notification of any policy change

Gap is often included — check before buying it

Many leases build gap protection in, because the leasing company carries the residual value risk. Buying gap separately when the lease already includes it is a straightforward waste.

Read the lease or ask the leasing company directly before adding it. This is one of the more common duplicate purchases in car buying.

Wear and mileage aren't insurance

Excess wear and excess mileage charges at lease end are contractual, not insurable events. Some leasing companies sell wear protection products — those are a separate purchase and not something your auto policy addresses.

Don't assume a comprehensive policy covers a return inspection.

If the car is totalled

The lease generally ends, the insurer pays actual cash value to the leasing company, and gap covers the difference between that and what the lease says is owed.

Without gap — and if the lease didn't include it — that difference is yours, which is why confirming whether you have it matters before anything happens rather than after.