Before you lease a new car it is important that you find out the auto insurance requirements your leasing company will accept. This is important as the insurance limits may be higher than you are accustomed to and you need to include the higher payment in your budget. Generally, the leasing company will require that you carry:
- Liability coverage: $100,000 per person / $300,000 per occurrence
- Property liability coverage: $50,000
- Comprehensive and collision for actual value with no more than $500 deductible
These limits are certainly reasonable. If you are leasing a luxury car that reflects your wealth it is possible that this minimum leasing coverage is not enough. One serious accident with injuries or death can easily exceed policy limits. This can cause you to have to personally pay what the insurance will not and could even cause you to lose your home or other assets.
Many people who lease also carry umbrella policies that provide additional protection after your auto insurance stops paying. Recently, those buying umbrella insurance policies have bought $5 million limits. Others, who have less to lose may just extend their auto insurance limits when leasing a car.
Call the Steve Wilk Insurance Agency, located in Lombard, Illinois for more information for an insurance solution if you are leasing a car. Their phone number is 630-620-4800.