Most New York lease agreements also require that you have collision insurance (or comprehensive insurance) and liability insurance. That insurance coverage takes effect when you're in a collision, just like if you were the owner. Leasing or financing a vehicle requires that you purchase car insurance with full coverage. Full-coverage car insurance is more expensive than liability coverage only, but you can still find cheap car insurance for leased cars if you're willing to shop around.
However, the landlord also often requires that leased cars be covered by additional levels of insurance beyond the legal minimum. The leasing company is the one that technically owns the car and will want to protect your investment if this happens. That means you'll likely have to buy additional coverage. GAP insurance covers the gap between what you still owe for the lease and the current market value of your car at the time of the collision.
You might be surprised to learn that the monthly cost is very similar, regardless of whether you're renting a car or if you own the car. For those who rent or finance a vehicle, they must have car insurance with full coverage, which affects the total cost of their car insurance rates per month. If you are leasing a vehicle and you have a car accident or the car is damaged, the dealer wants you to have enough insurance to repair the car to its pre-accident condition. Ultimately, how much insurance costs when leasing a car depends on many factors, such as where you live and how clean you have a driving record.
While you may not necessarily need full coverage insurance for a leased car, you do need insurance that meets the details of your contract. While leasing a car won't affect your insurance rates, you may need to buy more comprehensive coverage and that means paying more. When it comes to car insurance, your car insurance rates aren't determined because you lease or finance a vehicle. Hyundai's lease insurance requirements will also be different from the Nissan, Honda, or Audi rental insurance requirements.
Be sure to compare prices and compare rental vehicle insurance rates from many companies before buying car insurance with full coverage for a leased car. While it's vital to pay attention to state laws and car rental insurance requirements, review your coverage amounts to make sure you don't pay too much in car insurance rates. The only way to cancel insurance on a leased car is to replace it with a new policy right away. Whether you rent a car, apply for an auto loan, or buy a vehicle outright, you're likely to have a legal obligation to purchase auto insurance.