Stipulations for Leased Car Insurance
Securing insurance for a leased vehicle is the same as getting insurance on any other vehicle. In the case of leasing, however, the agreement normally obligates the lessee to have comprehensive auto insurance. In short, the leasing business owns the vehicle, the contract lays out obligations that allows you to use it. The main condition is full vehicle protection, aka, full coverage insurance.
Normal Wear & Tear vs Excess Wear & Tear
A standard vehicle lease agreement most likely clarifies exactly what qualifies as normal vehicle wear. This is important because when you return your leased vehicle you could be billed for damage and wear that falls outside of the lease. If that makes you uneasy, then make sure to inquire about Excessive Wear Insurance to take the uncertainties out of the equation.
Extending or Returning a Vehicle Lease
We recommend approaching the company you are leasing from leading up to the end of the lease to figure out your end of lease obligations. In addition to completing a lease return inspection, you may also want to request an auto lease buyout or lease extension. They allow you to keep your lease for an additional period of time, while the other lets you buy your leased truck, or SUV.
FAQ – Car Lease Agreement Terms
Normal Wear & Tear On a Leased Car, What is it?
Normal wear and tear on a vehicle is judged by the contractual specifications found in the lease agreement. Generally speaking, some wear is expected and something that is simple to replace.
Auto Lease Buyout, What is it?
An auto lease buyout is an end of lease option that permits you to purchase your own leased car for a fixed price based on a combination of value and the amount you have already paid towards it.
Are There Short Term Lease Options?
Sometimes short term auto leases are available as extended rentals from many rental companies but aren’t normally available from an auto dealership.
