Although leasing may allow you to avoid some of the costs and responsibilities of car ownership, you still need to buy auto insurance. Certain types of coverage are required by law or the lessor; others remain optional.

State Law

Texas authorities expect all drivers to carry liability insurance. A lease doesn’t change these rules in any way. The Lone Star State requires a policy that pays for a minimum of $25,000 in property damage and $30,000 in medical care for each injured person.

Lease Requirements

Before leasing a vehicle, ask the dealership’s staff about the rules. Many lessors require motorists to obtain much more liability insurance than the state demands. For example, you might need $50,000 worth of property damage coverage.

Lease providers usually expect drivers to acquire additional types of insurance as well. You’ll probably need comprehensive and collision policies. These plans protect you and the lessor in a wider range of accidents and natural disasters.

Even if you can find a car that doesn’t require collision or comprehensive coverage, it’s wise to purchase both types of policies. If a crash, fire, tornado or flood destroys a leased vehicle, you could owe many thousands of dollars to the dealer.

Optional Policies

When a serious accident “totals” an automobile, a guaranteed asset protection plan pays the difference between the car’s actual value and your total debt to the dealership. This type of policy is particularly important for vehicles that depreciate quickly.

Many lessors provide GAP coverage and add the cost to your monthly payments. If your lease doesn’t include this service, you may buy it separately. Some insurers will allow you to purchase a GAP plan by paying a single upfront fee.

Mechanical breakdown insurance is available for leased cars. It provides coverage that resembles a manufacturer’s warranty in most ways. This kind of policy generally isn’t necessary unless you exceed your original warranty’s mileage limit.

If you need comprehensive yet affordable insurance for a leased vehicle, consider choosing EZ Insurance Agency in Austin, Texas. Please use the website to request an immediate online quote or call our friendly local staff at 512-444-4445.