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