Requirements for Leased Car Insurance
Securing insurance on a leased vehicle is no different than getting insurance on any other vehicle. In the case of leasing, however, the terms usually obligate the lessee to secure a specific level of minimum coverage. The leasing company owns the car, the lease stipulates the obligations that allows you to use it for a set period of time. Normally one of the conditions is full vehicle protection, aka, comprehensive insurance.
Excess Wear vs Normal Wear
A normal vehicle lease agreement most likely clarifies exactly what qualifies as excessive vehicle wear. This is important because when you bring back your leased vehicle you may be charged for damage and wear that falls outside of the lease. If that makes you uneasy, then make sure to inquire about additional Insurance to take the ambiguity out of the equation.
Returning or Extending a Car Lease
Several months before the end of the contract, we advise approaching the company you leased from to establish your end of lease obligations. In addition to completing a lease return inspection, you may also want to request a lease extension or an auto lease buyout. One allows you to extend your lease for a longer time, while the other permits you to buy your leased vehicle.
Frequently Asked Questions – Auto Terms of Lease Agreements
What is a Lease Extension?
An auto lease extension allows you to extend your current lease agreement for a longer time. There are several factors but this could be 6 months, 12 months, or even month-to-month. The best way to find out is to ask.
What is Excessive Wear & Tear On a Leased Car?
Excess wear and tear on a car occurs when repairs and replacement components are required beyond what is specified in the lease. Typical items include missing parts, dents, aftermarket upgrades, or engine damage because of a lack of maintenance.
Can I Use My Current Car or Truck as a Trade-In?
Sure, you can use your vehicle as a trade-in. Taking advantage of the equity from the trade should lower the monthly payment, but it won’t modify the overall cost of the lease agreement.
