Life events
Insurance for a leased or financed car in Florida
Short answer
If you lease or finance, Florida's minimum isn't enough: your lender requires collision and comprehensive, usually with deductibles of $1,000 or less, and many leases also require higher liability limits such as 100/300/50. The dealer won't release the car until your insurance is in place, so get the quote before you go to sign.
Loan versus lease, side by side
| Car loan | Lease | |
|---|---|---|
| Collision and comprehensive | Required | Required |
| Maximum deductible | Often $1,000 | Often $1,000 or $500 |
| Liability limits | Florida minimum is often accepted | Often 100/300/50 or more |
| How the company is listed | Lender as loss payee | Lessor as loss payee and additional insured |
| Gap | Usually not included | Often included as a gap waiver |
Your contract has the exact rules. When in doubt, send David the insurance page of the contract.
What lenders usually require
- Collision and comprehensive, with a maximum deductible (often $1,000)
- The lender listed as loss payee; on a lease, the leasing company is also listed as additional insured
- Leases often require bodily injury and property damage liability of 100/300/50 or more, because under Fla. Stat. 324.021(9)(b)3 a leasing company's own liability for your crash is limited when you carry at least those limits. Your lease contract lists the exact numbers.
Gap coverage
When a car is totaled, insurance pays what it's worth that day, which can be less than you still owe. Gap pays the difference.
- Many leases already include a gap waiver. Read the contract before you buy it twice.
- On a loan, you can get gap from the dealer or as loan/lease payoff coverage from some insurers. Compare both prices.
An example: you finance $38,000 with $1,000 down. Eight months later the car is totaled and worth $31,000. After a $500 deductible, insurance pays $30,500, but you still owe $35,500. Without gap, you owe the bank $5,000 for a car you no longer have.
Be ready before you sign
Send David:
- The VIN (or year, make, model and trim)
- The lender's name
- The insurance requirements page from the lease or loan, if you have it
- Who will drive the car
He can have the policy ready to bind the moment you sign, so you're not calling around from the finance office.
Common mistakes
- Picking a $2,500 deductible to save money when the lease caps it at $1,000
- Forgetting to add the lender as loss payee, which delays claim checks
- Keeping the old car's policy and not adding the new car within the grace period
- Buying gap at the dealer when the lease already includes it
FAQ
Can I lease with only PIP and PDL?
No. Every lender we've seen requires collision and comprehensive.
What if my insurance lapses on a financed car?
The lender can buy coverage for you and add it to your payment. It's usually expensive and only protects the lender.
Does gap cover my deductible?
Some products do; most don't. Ask before you buy.
Can I cancel dealer gap if I buy it from my insurer?
Many dealer gap contracts can be canceled for a prorated refund. Check the contract.
Do I need to tell my insurer when I pay off the loan?
Yes, so the lender can be removed. You can then decide whether to keep collision and comprehensive.
Your policy’s wording decides what’s covered. David can walk you through yours.