What auto insurance coverage is required for leasing a car in California?

leasing a local dealer’s 2018 Subaru Forrester. I was informed I required the highest coverage when I signed up for Geico. Who makes that decision—the insurance company or the dealership?

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Hi Dylan… The decision to require the highest coverage for your leased 2018 Subaru Forester is typically made by the leasing company, not the dealership or the insurance company. Leasing companies often have specific insurance requirements to protect their financial interest in the vehicle. These requirements usually include higher liability limits and comprehensive and collision coverage. When you sign up for insurance with Geico or any other provider, they will ensure your policy meets these requirements, but the mandate itself comes from the terms of your lease agreement.

When leasing a car in California, I found that the state requires liability coverage, which includes bodily injury liability coverage of $15,000 per person and $30,000 per accident, as well as property damage liability coverage of $5,000. Additionally, the leasing company typically requires full coverage, which includes collision and comprehensive coverage. This is because the leasing company wants to protect their investment in the vehicle. For example, if I were to lease a car in California, I would need to have a full coverage policy that includes liability coverage of at least $100,000 per person and $300,000 per accident, as well as collision and comprehensive coverage. The average annual cost of full coverage auto insurance in California is around $1,867.

In the case of leasing a car, the minimum insurance coverage requirements are typically set by the leasing company, not the dealership. They have a financial stake in the vehicle and want to ensure it’s adequately protected. While your insurance provider (Geico in this case) may offer various coverage levels, the leasing company will specify the minimum compulsory coverage you need.

Dylan, the lease/finance company has those rules. In general, you can have any degree of liability; nevertheless, some companies require 100/300.

Leased cars typically need a full-coverage insurance policy.That’s because you need to meet at least the minimum auto insurance standards of your state, as well as any other requirements your leasing company has, like comprehensive and collision coverages