My sister has a leased vehicle. I woul like to know what is the required minimum liability on that car. We live in Texas.

John

Houston TX

In Texas the minimum liability insurance is $25,000 for each injured person, up to a total of $50,000 per accident, and $25,000 for property damage. This basic coverage is referred to as 25/50/25.

Since your sister has a leased car she will be required to purchase more insurance than what the Texas requires. She may be required to get the physical damage coverage. Physical damage coverage consists of collision and comprehensive coverage. Usually, collision insurance covers damage to your car caused by collision with another car or object. Comprehensive insurance covers damage to your car from vandalism, theft or glass breakage. Most lien holders require physical damage coverage if you are leasing your car.

If your sister is leasing a car she will need to insure it. You may ask the lien holder to know if she is required to obtain the physical damage coverage of collision and comprehensive on the car.

I will be staying in Texas for a few years and I want to lease a car. Should I get insurance? If yes, what should I expect?

Tiffany

Bridgeport TX

Here is one thing to bear in mind: whether owning or leasing a car in Texas, it is better to have it insured. Remember, any kind of insurance can help you pay for the expenses that can happen in a worst-case scenario accident. If you dont have it, you will end up paying for the damages and medical expenses out of your pocket. If youre always broke, then in a worse-case scenario, your assets will be at risk.

I know there are questions on what kind of insurance to get. There are tons of cheap leased car auto insurance available out there. It is just a matter of shopping for them before signing a deal.

However, it is also important to know the different kinds of auto insurance. Leasing cars have their own requirements in terms of the minimum coverage. In most cases, liability coverage should be $100,000 per person or $300,000 maximum coverage per incident. There should also be $50,000 property damage liability, as well as, comprehensive and collision for actual value with no more than $500.

Bear in mind that insurance for leases are more expensive compared to owning one. This is because you dont own the car. The leasing companies own them. Expect that they will be demanding in terms of the requirements, simply because they also want to ensure that their investment is protected at all times. Therefore, if you compare the values above, it is relatively higher from Texass standard auto insurance coverage.

In most cases, it would be better to get full auto insurance. This can cover everything mentioned above including GAP insurance.

To get cheap leased car auto insurance, check with your provider. In some cases, people with great credit standings have better rates. Who knows, you might be qualified for discounted rates.

I don’t own a car. What if I lease a car? Will I still need auto insurance?

Frances

Austin, TX

Leasing is fast catching up. A lot of people are into it. It is the advisable thing to do if you want lower monthly payments, a new car every couple of years and the benefits that go with a new car, like the latest safety features and high-tech automobile gadgets.

However, even if you don’t own a car and you go ahead and just lease one, you would still need to have auto insurance. It’s not legal to drive around the state of Texas without auto insurance coverage. You can not legally drive around Austin, TX, without insurance. Besides, the auto dealer or bank that will be financing the car lease will require you to have collision and comprehensive coverage. Collision insurance coverage takes care of the damages to your car if you collide with another car or object. Comprehensive insurance, on the other hand, pays for the damages to your vehicle caused by anything other than collision. This would include vandalism, natural disasters and even theft. You have to understand that when you lease, the car belongs to the company. They would want to make sure that their property will be properly covered and taken care of while you’re using it. You need to have these policies required by the car company and also liability insurance as this is required by the state.

Tags: auto insurance, car insurance, leased car insurance

My father and I just leased a vehicle. The problem is that I have a revoked drivers license and the dealership wants to exclude me and the auto insurance company will not exclude me. Can you tell me what to do?

Brian

Dallas TX

Most car insurance providers will not exclude you if the policy is under your name – meaning you are the named insured. The auto insurance policy will probably need to be in your father’s name – if they exclude you to the auto insurance policy. However, you will not going be covered to operate the automobile if you will be excluded to the car insurance policy. I suggest that you get your drivers license restored as soon as possible. Even though the dealership would want you to be excluded, you will have to verify with the car company to be certain it is ok for you to be excluded.

I want to lease a new Toyota Prius…..damn gas prices are out of sight! The dealership wants to charge me a bunch of smaller “Fees” in addition to the lease fee, what should I do….go to a bank for a lease?

Tom,

Detroit, MI

Dealerships value your business and are ready to negotiate. Mention important options before you seal the deal. Dealers know that some people like to swap cars often and want the flexibility to get out of a particular car when they choose.

What the dealer doesn’t tell you is that leasing is designed in a way that makes it both difficult and expensive to terminate before the normal end date. Dealers also try to sell you on leases by doing a comparison between the payments for a lease and the payments for the same car on a conventional loan. Invariably, the comparisons show the lease payment to be the winner. Most banks will not offer a car lease, but there are a few aftermarket companies that will…so shop around.

Jerry,

Dallas,TX

Perhaps as recently as 8 years ago, most auto consumers had never really heard nor considered leasing a viable options for their auto financing.

Today, leasing accounts for nearly 35% of total auto sales in America (that?s more than double that of the previous decade)! Perhaps, the most important thing to keep in mind is experience. In fact, that may be why you are seeking professional help instead of trying to restore your own muscle car.

Perhaps more importantly, this angle helps to solve the incentive mess that manufacturers dug for themselves with 0% financing and ever-spiraling rebate deals. They started in the 1980s with Lee Iacocca’s “buy a car, get a check” $50 rebate campaign.

Thanks,

Tom, Atlanta GA

Hey there Tom,

Car leasing (auto leasing) is essentially a way of obtaining a vehicle for a set period of time. Leasing is not renting and renting is not leasing, nor is it financing.

Auto leasing is a popular option for people who want to keep changing their cars every few years without having to bother about selling old ones or buying new ones.

Most people find leasing from a consumer friendly company convenient, time saving and efficient. Auto leasing is a great option for companies since the payment is 100% tax deductible. Its also a great way to drive a new car every two years so long as you don’t go over mileage limits.