Essential Tips for Leasing a Vehicle

Leasing a car is a popular option for many Americans, especially those eyeing upscale, stylish, and more expensive vehicles without the long-term commitment of ownership. Whether motivated by lifestyle, aspiration, or business branding, driving a luxury car can shape a certain impression.

Some prefer leasing due to financial flexibility, inability or unwillingness to purchase, or a desire to frequently upgrade to new models every few years.

Regardless of your reasons, understanding your responsibilities and costs is crucial, especially regarding insurance requirements for leased vehicles.

Remember, insurance is mandatory and separate from your lease payments. It is your duty—whether individually or as a business—to secure appropriate coverage for the leased car.

Notify your insurance provider that you are leasing to ensure proper policy setup and avoid issues later. Since leased vehicles are typically newer and higher in value, insurance premiums will likely be higher.

Unlike ownership, leasing often requires comprehensive, collision, and higher liability coverage to protect the leasing company’s investment. Be prepared for increased premiums compared to state minimum requirements.