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Leased autos are required to have car insurance coverage. The company that is financing your lease -- either the auto dealer or your bank -- will require comprehensive insurance and collision coverage in addition to any coverage required by your state of residence.
Drivers of leased cars may also be required to have gap insurance, a cost that is often rolled into their lease payment. This insurance covers the leased car in the event of an accident that totals the vehicle. The totaled amount issued by the auto insurance company may be less than the amount the driver owes the auto dealer or bank for the auto, and gap insurance covers the difference.