Leasing Insurance Requirements Explained

Educational explainer. U.S.-focused; costs and rules vary by state and by country.

Leasing companies usually require higher insurance coverage than you might carry on an older owned vehicle. The exact limits and deductible caps vary by lessor and by state, so treat this as a practical overview—not a substitute for your contract.

Key points

• Most leases require comprehensive and collision plus higher liability limits.
• Deductibles are often capped (for example, $500–$1,000).
• Gap coverage is commonly included, but you should confirm in your paperwork.
• Insurance costs can change the lease vs buy math more than people expect.

FAQ

Do leases always require full coverage?

Typically yes—comprehensive and collision are usually mandatory on leases.

Is gap insurance always included?

Often, but not always. Confirm in your lease paperwork or with your lessor.