What insurance do I need for a leased car?

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So you're leasing a car. What type of insurance do you need?

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When you lease a car, leasing companies usually require you

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to carry your own insurance on the car, even though you don't own it.

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And leased cars need to be insured for full coverage, which typically means

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comprehensive and collision insurance, plus any other coverage

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required by your state. Here's how it works:

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Comprehensive insurance could help cover damage to your vehicle

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caused by unexpected events like bad weather.

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And collision insurance could help cover damage from things like hitting another vehicle.

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Both provide extra coverage in case anything goes wrong

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while you're driving your leased car. Another good idea for leased cars

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is guaranteed asset protection, also known as GAP.

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Did you know that when a vehicle is totaled in an accident or stolen and not recovered,

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you could owe more than the vehicle is worth? GAP is designed to reduce or eliminate the difference

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between the insurance settlement and the loan balance.

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You see, comprehensive and collision insurance may not be enough

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to cover what you owe on the lease if your car is totaled or even stolen.

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Knowing you have options can help you be ready

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for the unexpected with the right protection for your leased car.