If you lease a car in Ohio, you’ll need to purchase your own auto insurance policy. The auto dealer or bank financing the car will require it.
In addition to other mandatory auto insurance coverages in Ohio, you will need to purchase a policy with collision and comprehensive coverage.
- Collision covers damages to the leased car resulting from an accident with another car or object.
- Comprehensive covers losses that are cause by something other than a collision with another car or object, like a fire or theft.
Depending on the leasing company, you may also need what’s called “gap” insurance. In the event your leased car is “totaled,” gap insurance covers the difference between the amount you still owe the leasing company and the check you’ll get from your auto insurance provider.
The reason the check from your insurance company is usually lower is because the insurer writes the check based on the car’s actual value which takes depreciation into account.
The cost of gap insurance is generally included in your lease payments, so you will most likely not have to purchase a gap policy. However, this is dependent on the auto dealer from which you lease your car. It’s best to double check with the auto dealer to make sure.
Leasing a car in Ohio instead of buying can be an attractive option for many drivers. But leasing a car does come with requirements.
For help finding an affordable Ohio auto insurance policy with collision and comprehensive coverage, get a free quote or contact Burkhart Insurance Agency. We’ll help you shop for a policy that’s right for you.