Leased Car Insurance Question
June 2nd, 2009
Reader’s Question:
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.
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