Auto Insurance Requirements for Leased or Financed Vehicles

Leasing or financing a vehicle can be an exciting step toward acquiring your dream car. However, it also comes with a set of responsibilities, one of which is securing the appropriate auto insurance coverage.

Understanding the minimum auto insurance requirements is crucial for anyone who leases or finances a vehicle. Alan Insurance Services can help you find the right insurance coverage for your leased or financed vehicle. Contact us today for an instant quote.

North Carolina’s Minimum Auto Insurance Requirements

In North Carolina, auto insurance is mandatory for all drivers, including those who lease or finance their vehicles. This requirement aims to protect drivers and their vehicles, as well as other road users, in case of accidents. The state’s minimum required auto insurance coverage includes the following:

• Bodily injury liability insurance may help provide financial protection if you cause an accident resulting in injury or death to another person. Your policy must meet or exceed the minimum dollar limits set forth by North Carolina laws.
• Property damage liability may help pay for damages you cause to another person’s property in an accident. This policy also has dollar limits, and your coverage must meet the state’s minimum requirements.

Your agent may recommend maintaining bodily injury and property damage liability coverage that exceeds the state’s minimum requirements to help provide adequate coverage for your situation.

Additional Recommended Coverage

When you lease or finance a car, the lessor or lender may require additional coverage to safeguard their interests, including the following:

• Collision coverage may help pay for damages to your vehicle in an accident with another vehicle or object.
• Comprehensive insurance may help cover damages to your vehicle caused by events other than collisions, including vandalism, theft, natural disasters or animal collisions.
• Uninsured/underinsured motorist coverage may help provide financial protection if you’re in an accident with a driver with insufficient or no insurance coverage.

Contact Alan Insurance Services for an Instant Car Insurance Quote

To receive an instant car insurance quote, contact Alan Insurance Services. Our friendly staff will answer your questions, assess your needs and provide you with a competitive insurance quote that meets North Carolina’s minimum requirements and includes additional coverage you may need for your leased or financed vehicle.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.