individuals have different opinions when it comes to leasing a car and purchasing a car, but here’s the basic gist of it: purchasing a car differs from leasing a car in that purchasing a car requires you to pay for the entire car, whereas leasing a car requires you to pay for the amount of the car you “use up” during a set period of time. Simply put, once the time period is up the person leasing the car may decide to purchase the car, or move on.
There’s no difference, however, in purchasing vehicle insurance for bought and leased cars. If you lease a car and finance through the dealer or a bank, you’re still required to purchase vehicle insurance for your leased car. Just because you’re only paying for the portion of the car that you use during a specific time period doesn’t mean you aren’t responsible for repairing the damages to the leased car, or the damages your leased car may inflict upon another person’s car, or another person.
For example, if your leased car is involved in an accident that is your fault and involves another party, you’re responsible for paying to repair not only the damages to your leased car, but the damages to the other party’s car, as well. At the same time, if your leased car is involved in an accident but no other party is involved, you’re responsible for repairs to your leased car if the accident was your fault.
Too, your leased car may be involved in an accident that wasn’t your fault with a party that doesn’t have vehicle insurance. By having vehicle insurance for your leased car, you are safeguarding yourself against drivers who don’t have vehicle insurance.
The purpose of vehicle insurance is universal. Regardless of whether you purchase or lease your car, and regardless of your reasons for purchasing or leasing, you must still purchase vehicle insurance.