Car insurance is a contract between you and an insurance company that helps protect you financially after accidents, damage, theft, or liability claims. In exchange for a premium, the insurer agrees to cover specific losses outlined in your policy.
Most car insurance policies include multiple types of coverage, such as liability, collision, and comprehensive insurance. Leased vehicles typically require broader coverage than minimum state requirements.
Why car insurance matters for leased vehicles
Lease agreements almost always require continuous insurance coverage that meets specific limits, deductibles, and policy conditions. Failing to maintain proper coverage can result in penalties or forced insurance placed by the leasing company.
