A lease is technically a long-term rental, and the leasing company owns the vehicle. That ownership structure drives every insurance requirement in the contract.
Typical lease requirements
- 100/300/50 liability minimum (well above Texas 30/60/25)
- Comprehensive and collision with a $500–$1,000 deductible cap
- Gap coverage (often required, sometimes built into the lease)
- Leasing company listed as additional insured AND loss payee
What happens if you under-insure
If you don't meet the requirements and have a claim, the leasing company can force-place insurance — added to your monthly payment at 2–3x normal cost — and may declare you in default.
End-of-lease wear and tear
Insurance won't pay for normal wear-and-tear charges at lease-end. Some carriers offer 'lease wear and tear' endorsements separately.
Frequently asked questions
Why does my lease require 100/300 liability?
The leasing company is named on the title and faces liability exposure if you cause a serious accident; higher limits protect them.
Is gap insurance always required on a lease?
Most leases require it. Some build it into the monthly payment automatically.
This article is for general information only and is not legal or tax advice. For guidance specific to your situation, talk to a licensed Texas insurance agent. Ready to put it into practice? Get a free quote or request a policy review.