So you are thinking of leasing a vehicle. Did you know your bank or lien holder will require for you to obtain comprehensive and collision and higher liability limits?
Why?
When you lease, your car belongs to the company leasing you the car. It is as if you are renting the car for a long period of time, the car never belongs to you therefore if something should occur to the car they would like their investment (car being leased) to be insured. Most companies will require your comprehensive and collision coverage deductible to be no greater then $500.00.
The company leasing you the vehicle will also protect themselves from any lawsuits if you should be liable for an accident. When such accidents do occur it is easy for the victim of an accident to go after the the company instead of the person leasing the vehicle since their is usually more money to collect that way.
They protect themselves by requiring you to purchase higher liability limits usually being $100,000/$300,000/$50,000
So when leasing a vehicle don not forget to call your insurance company and shop around for rates. Be sure to mention that you will be leasing a new vehicle and you would like to satisfy your lienholder.
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