Lease insurance requirement

[johnnybgood]

What is the name of your state?What is the name of your state? CA

After having leased this car for 3 months, the lender sent me a letter stating that I need to contact them because my insurance coverage didn't meet their requirement. Basically, they want the minimum bodily injury at $100,000 compared to my $30,000, minimum bodily injury per occurence from $100,000 to $300,000, and property damage of $50,000 compared to $25,000.

I've leased a couple of luxury cars before and never had any problems with my policy. Compared to my prior leases, I would end up paying more insurance for this sub-compact car. My insurance told me that they are adding $300/yr to meet these requirements. Anyway, I called them and told them that I'm not paying even a cent more of what I'm paying now for my insurance. I'm fully covered and they have to agree with my coverage. Well, they didn't. They said that they're sending me a letter of what will be their next step.

My questions are, (1) isn't my coverage enough for a sub-compact car?, (b) what would be their next move?, (c) what should be my next move?

I appreciate any point of view or answer to my problem.

Thanks.

[tammy8]

Personally I have leased cars on and off for the past 12 yrs and was ALWAYS INFORMED to carry atleast 100/300/50 no matter what the cost of the vehicle has been. This coverage is to protect YOU and the lease company in case YOU get sued due to an accident and has nothing at all to do with being "fully covered". I would almost stake my life, if you went back and reread your lease contract, there is a clausee in there about carrying these limits.

Therefore you are NOT fully covered with 99% of the lease contracts I have seen over the yrs...and btw I am also an insuring and have never in the past 10 yrs of working in the industry been witness to any leased vehicle carrying limits below 100/300/50.

Oh and do you not realize it is usually just a couple of dollars difference a month in the minimum limits and the higher limits (which still IMO is still not enough to protect yourself and your family).

[johnnybgood]

Originally Posted by tammy8

Personally I have leased cars on and off for the past 12 yrs and was ALWAYS INFORMED to carry atleast 100/300/50 no matter what the cost of the vehicle has been. This coverage is to protect YOU and the lease company in case YOU get sued due to an accident and has nothing at all to do with being "fully covered". I would almost stake my life, if you went back and reread your lease contract, there is a clausee in there about carrying these limits.

I reread the contract and you're absolutely correct. I guess I don't have much option. I only wish they had INFORMED me so I could have leased a much cheaper car so I could afford this outrageous insurance requirement. I have been driving and paying insurance for 13 years and never used it, not even once. Oh well.
The dealer said that my insurance for this car should be cheap because NHTSA ranked it as one most safe vehicles on the road. Guess what, they're wrong. b-a-s-t-a-r-d-s