What type of insurance should be purchased for leased vehicles?

For leased vehicles, it's essential to purchase comprehensive and collision coverage, along with any specific requirements stipulated by the leasing company. When leasing a vehicle, the leasing company retains ownership of the vehicle, and they typically mandate that the lessee carries insurance that protects the vehicle's value properly.

Comprehensive insurance covers damage to the vehicle caused by non-collision incidents, such as theft, vandalism, or natural disasters, while collision insurance covers damages resulting from accidents. Both types of coverage ensure that the vehicle is protected from various risks and that the leasing company can recover the vehicle's value in the event of a loss.

Additionally, leasing companies may have specific insurance requirements, which could include certain deductibles or coverage limits that lessees must adhere to. Therefore, addressing both the comprehensive and collision aspects alongside any leasing company requirements is crucial for compliance and financial protection. This ensures that, in the event of an accident or damage, there are sufficient resources to cover repairs or replacement, protecting both the lessee and the leasing company.