Is Car Insurance Different for Leased Cars?

All motor vehicles being driven on public roads in NC are required by law to be covered by at least a minimum amount of vehicle insurance. This includes liability protection and protection against losses from injuries resulting from an accident caused by an uninsured or underinsured driver. Liability coverage is meant to protect the other drivers involved in an accident for which you are deemed responsible. It can help pay for their losses resulting from physical injury or damaged/destroyed property. Greensboro car insurance liability coverage does nothing to protect you from losses such as personal injuries or damaged, destroyed or stolen vehicles.

To be protected for these losses you must add more to the basic liability coverage found in a minimal Greensboro car insurance policy. For more complete protection you need to at least add collision and comprehensive coverage to your policy. There are other protections you may choose to add, but these three – liability, collision and comprehensive – should be at the top of your list unless your car is of such low value you can't justify the additional cost of adding this coverage.

Buying Versus Leasing Insurance Requirements

Whether you're buying a car, using a car loaner or leasing a car, insurance requirements are similar. The specifics of the coverage are dictated by the lender or the lessor, with their main concern making sure their financial exposure is protected in the event that something unexpected  happens to your car. With this in mind, you'll be required to have full coverage in place, including collision and comprehensive protection.

As with all cars being driven on NC public roads, you must carry at least the minimum amount of liability protection. It's worth mentioning here that the State's minimum liability requirements are low and would typically only cover a small fraction of the money you'd need to pay for losses you cause to others in an accident deemed your fault.

Gap Insurance

One other type of protection leasing companies typically require is something called gap insurance. New cars start to depreciate in value the minute they're driven off the lot. A new car may depreciate in value as much as 20% or more during the first year. If you have an accident and total your leased car early on, the payoff from your insurer may not be enough to cover your outstanding financial obligation. Gap insurance will cover this shortfall and can be purchased from your loan officer.