Not every dealership requires you to have the maximum insurance requirement. In most cases, you need to accept the basic liability insurance required by the state. But every state is different, you may not be aware of what exactly is covered by your state’s basic liability laws. Here, we’ll explain what you need to know about Collision and Comprehensive insurance.

What is Basic Liability

Basic liability is the minimum insurance required before you can drive off the lot. Depending on what state you’re in, the type of insurance you’re required to get can be different. The leasing company you work with may have its own requirements as well.

The leasing company will be on the insurance as well because they expect to be reimbursed for damage done to the vehicle. 

Most likely, your state will require collision insurance at the minimum, at the maximum they’ll require comprehensive insurance.

These two types of insurance cover very different things, so it’s important to understand what you should expect. 

Collision Insurance

Collision insurance covers any damage that is done to your vehicle. In a collision with another vehicle or object, the damage done to your vehicle will be covered. If the car is totaled collision insurance will cover the full replacement of the vehicle. 

But, the collision itself is the only thing covered by collision insurance. There are plenty of things that can happen to your lease that aren’t necessarily a collision.  That’s where Comprehensive car insurance comes into play.

Here are some specific examples of what is covered:

  • Your car hits an object, such as a tree
  • Your car collides with another vehicle
  • Your car rolls over
  • Your car is damaged due to hitting a pothole

Comprehensive Insurance

Sometimes people get confused by the term “comprehensive” because it implies that everything is covered. However, as you know, it covers just about everything except collisions. In most case’s it’s important to have both.

What isn’t covered by Collision insurance is any harm that is caused to the vehicle that isn’t a collision such as theft, vandalism, or acts of nature. So if your lease gets stolen, you will be refunded the full value of the vehicle. 

Here are some specific examples of what is covered:

  • An object falls on your car, such as a tree 
  • An animal collides with your car
  • Your car is damaged due to fire or natural disaster
  • Your car is vandalized or stolen

Factors to consider

Choosing insurance can be a frustrating process because of the additional expense. But, the right answer is almost always to be fully insured. Spending a couple of extra dollars on insurance can save you a fortune if something goes wrong with your lease, whether it’s your fault or not. 

Here are some key factors to consider when insuring your vehicle: 


No matter what, every time you get behind the wheel of a vehicle you are taking a risk. The more time you spend on the road the more risk you are taking on. In rare cases, people lease cars that don’t drive much on highways or city roads. 

Even if you don’t have many risks on your drive, it’s still better to have the peace of mind of both comprehensive and collision insurance.

Vehicle’s Value

The higher the value of the car the more important it is to have full insurance. Always keep in mind that you may be on the hook for the full value of your vehicle if something happens. However, if the value of the car is very low, then your insurance payments may end up costing you more than the vehicle does. 

If this is the case, accepting the mandatory insurance and adding nothing else may be acceptable.


If you know you wouldn’t be able to afford to replace your lease than make sure you have full insurance coverage. In a situation where an accident happens, you don’t want to be stuck with a debt you cannot afford.

It’s not worth the risking of putting yourself in a difficult situation. Having full insurance is best in this situation.

Your Area

Some areas are more dangerous or have more accidents on average than in other places. Make sure to do some research to see if collisions are more frequent due to poor road designs, frequent acts of nature, or due to an abundance of college students.

Crime is also a major factor when considering Comprehensive insurance. Having your car stolen is very rare in almost any city but being aware of the risk is important.

Making A Decision

In some states, you may not have a choice regarding your lease insurance. But for most people, you may have to choose between collision, comprehensive, or both. Having all of the information is important before signing on the dotted line. Hopefully, we have helped you come to a more informed decision.

If you have any further questions regarding this issue, please do not hesitate to reach out to us on