Leased Vehicles
Understanding contractually obligated protection limits and lease-end wear-and-tear expectations.
Disclaimer
This content is strictly for educational and informational purposes and does not constitute insurance, financial, or legal advice. Drive Guard Insights is not an insurance company, agent, broker, or marketplace. Consult a licensed professional for advice specific to your situation.
Overview
A lease typically imposes contractual minimum liability limits and a requirement to carry physical damage coverage for the duration of the agreement. These obligations are independent of state minimum requirements.
Coverage Considerations
Educational topics include contractually required bodily injury and property damage limits, lease-end wear and tear standards, mileage allowances, and the role of GAP coverage which is sometimes built into the lease and sometimes optional.
Common Terminology
Residual value, money factor, disposition fee, excess wear, and contractual liability limits are common terms found in a lease agreement.
Questions for a Licensed Agent
Consider asking how your liability limits compare to the contractually required minimums, whether GAP is already included, and how a claim could affect a lease return.