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Will Your Auto Insurance Cover Car Leasing?

Discover whether your auto insurance provides adequate coverage for leased cars. Understand the differences between private and commercial car insurance, and learn about essential coverage options to safeguard your leased vehicle effectively.

  • 07 Mar 2024
  • 2 min read
  • 27 views

Do you wonder if your auto insurance truly has your leased car covered? In the maze of car leasing, the question arises: Will your auto lease insurance extend its protective embrace over your leased wheels? Let's discuss how you can cover your car leasing with insurance.

 

Will Car Leasing Be Covered By Your Auto Insurance?

The following will help you understand whether your four-wheeler insurance plan will cover your car leasing:

  • Car leasing is distinct from renting, involving a 2 to 5-year duration where the lessee pays the lessor for using the vehicle without owning it.
  • In India, motor insurance, with at least third-party liability coverage, is mandatory by law for both private and commercial-use vehicles.
  • To ensure comprehensive protection when leasing, you must opt for commercial car insurance, which differs from private car insurance. It's a crucial investment to safeguard your business’s financial interests.
  • Regardless of whether you opt for buying or leasing, leasing companies often require comprehensive and collision coverage, but check your auto insurance policy for details. You should also consider this third-party liability coverage in your policy. It is a mandatory coverage that addresses liabilities caused by the insured car but with limited benefits.
  • Comprehensive coverage offers a broader shield, including damages resulting from accidents, theft, fire, natural calamities, and harm to third-party vehicles or property.

Another add-on cover you must consider is the consumables cover. It includes expenses for items like engine oil, nuts, and bolts used during repairs, typically not covered in standard plans.

Also read:

Conclusion

Whether you opt for third-party or comprehensive coverage, securing commercial vehicle insurance is a must when leasing a car. Explore a diverse car lease including insurance options and tailor-made add-ons to drive worry-free during your leasing period.

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