Schneiderman Insurance Agency, Inc. Blog
The major difference between renting and leasing is the contract's duration. A lease is for a longer time, usually more than a year, while a rental contract is usually for a shorter amount of time, usually just a few months.
You don't need to have your car insurance to rent a car. If you don't have your policy, the rental car company will make you buy liability coverage. You will also be able to add extra coverages, such as collision and damage to the tires.
Do you need Insurance for a Leased Car?
When you lease a car, you must buy car insurance even though you don't own the car. No matter where you lease a car, you must meet the minimum insurance requirements and any other requirements your lessor may have, such as collision and comprehensive coverage.
When your lease is over, you can either give the car back to the dealer or buy it for a set price, which is written into the lease contract.
What's To Be Included in the Insurance?
Most leasing companies will insist that you purchase comprehensive insurance for your leased vehicle. This necessitates that you take out supplementary policies of both collision and comprehensive insurance. In addition to the mandatory liability insurance mandated by most states, this is also strongly recommended.
If you lease a car and get into an accident, the lender will be protected if you have full coverage insurance. Plus, it shields you from financial responsibility for any damage to the car.
Leasing a car and renting one have a lot in common, including the fact that, in both instances, you are paying another party for the privilege of driving their vehicle. On the other hand, that's where the similarities stop.
In summary, you don't need auto insurance for a rental car. However, if you're leasing a car for some time, you'd need auto insurance.
At Schneiderman Insurance Agency, we put our clients first by offering them policies that they can afford. Having insurance is a necessity nowadays, and we're here to help you out. Learn more about our products and services by calling our agency at (818) 322-4744. You can also request a free quote by CLICKING HERE. Topics and coverage discussed in this article are not guaranteed, consult with your agents to determine what your policy does and does not cover. We are more than happy to help!