Leasing a vehicle can provide individuals and businesses with the mobility they need while avoiding the total cost of ownership. For many who are new to the process, a common question arises: will they need to get auto insurance to cover the leased vehicle while they use it? In the following guide, this question is answered in detail, along with valuable information about types of coverage and why you should consider leasing. Take a look below to learn more.

Is It Necessary to Insure a Leased Vehicle?

In most states, it’s mandatory to have some form of auto insurance on any vehicle that you lease or own. While laws vary, all states require drivers to carry liability insurance at the least. Since the liability cost associated with most leased vehicles exceeds their value, it’s necessary to carry full coverage to protect yourself in the event of an accident or damage to the vehicle.

Furthermore, most leasing companies will require proof of insurance before they’ll allow you to drive the vehicle off their lot. You should also check local laws to make sure that the minimum liability coverage is met for the state in which you are registering the vehicle.

What Types of Coverage Are Needed?

auto insurance

The type of auto insurance coverage you’ll need will vary depending on the type of vehicle you lease and the relevant state laws. Generally, liability coverage is required in all jurisdictions. Furthermore, a leasing company may also recommend or require you to carry collision coverage, which helps pay for repairs to your vehicle if it’s damaged in an accident, and comprehensive coverage, which helps pay for repairs to your vehicle if it’s damaged by something other than an accident, such as a fire, theft, or vandalism. It may also be wise to cover yourself against uninsured or underinsured drivers for protection in the event that you get into an accident with a driver who doesn’t have adequate insurance coverage.

What Are the Benefits of Leasing Vehicles?

Leasing a vehicle can provide many benefits, including:

  • Lower upfront costs: Leasing a vehicle can help you avoid the high upfront costs of purchasing a vehicle.
  • Low monthly payments: Leasing a vehicle can help you keep your monthly payments low.
  • Newer vehicles: Leasing a vehicle can help you get a newer vehicle with the latest safety features, which can help reduce your insurance premiums.
  • Flexibility: Leasing a vehicle can provide you with the flexibility to upgrade to a newer model when the lease is up.


For help with all your auto insurance needs, you can turn to NOMA Insurance: Allstate Insurance in Omaha, NE. Agent John Livingston and his team offer a wide range of insurance solutions for business owners and private individuals throughout Douglas County, combining extensive experience and expertise with top-quality customer service on policies for auto, home, business, and life insurance. Call (531) 999-8920 to speak with a helpful representative or to request a quote.