Do You Need To Insure A Leased Vehicle?
Does insurance coverage for a leased vehicle differ from insurance coverage for a purchased vehicle? Many people throughout Pennsylvania are unsure of the answer to this question.
At Shollenberger, Januzzi & Wolfe, LLP, our attorneys have decades of experience handling car accident cases. We know firsthand how motor vehicle insurance issues can make these cases much more complex than they need to be. For that reason, we are happy to educate drivers about properly insuring their vehicles. That includes drivers who are leasing their vehicles.
The Cost Of Insurance For A Leased Vehicle
Insuring a leased car may be more expensive than insuring a vehicle that you have purchased. This may actually be the result of the leasing company’s policies rather than Pennsylvania laws, although state laws may play a role in how the leasing company determines its requirements.
When you lease a vehicle, you are not the owner of the vehicle. The lessor owns the vehicle. Under Pennsylvania law, the owner of the vehicle may have some liability in the event of a car crash. The leasing company will want to protect itself from liability, so it may require that the lessee purchase insurance coverage that exceeds what would typically be required by law. A waiver of liability may also be required.
The lease agreement may actually specify the type or types of insurance required. One type of auto insurance that is often required by lessors is Guaranteed Auto Protection (GAP) insurance. This is a type of insurance that many people are unfamiliar with. It is designed specifically to cover the difference between the amount owed for a vehicle and the value of a vehicle, taking the quick depreciation of new vehicle value into account.
Learn More From An Experienced Lawyer
Whether you simply have questions about buying insurance for a leased vehicle or you have been in an accident and you know these issues will be a factor, we can help. Call us at 717-229-6580 or send us an email. Our law firm has offices in Harrisburg and Enola.