Car lease insurance requirements by brand

What lessors typically require

The Federal Reserve's consumer guide to vehicle leasing (last updated 2003, still the plainest official summary) says that in most leases you buy and maintain vehicle insurance throughout the term of the lease. It lists the usual package:

• Liability of $100,000/$300,000/$50,000: $100,000 bodily injury per person, up to $300,000 per accident, up to $50,000 property damage.
• Collision, usually with a maximum deductible of $500 or $1,000.
• Comprehensive (fire and theft), usually with a maximum deductible of $500 to $1,000.

The same guide says the maximum deductibles and the limits are set in the lease agreement, and that you can carry lower deductibles or more coverage if you want. The table below shows what each captive publishes today.

What each captive publishes

As published in October 2026. The last column links to the exact page each row was read from, so you can check it yourself.

• GM Financial's property-damage line reads “$50,000/$500,000 limits or combined single limits.” It is quoted as GM prints it. Check your contract for the exact figure.
• Ford Credit has no consumer page on this. Its row comes from the Ford Credit Auto Lease Trust 2026-B prospectus filed with the SEC in July 2026, which describes the standard lease: comprehensive, collision, and liability, liability generally at the state minimum, a $1,000 deductible cap, and the titling company named on the policy. Its 2023 prospectus on ford.com has the same liability, deductible, and titling-company terms.
• Nissan says the minimums for its Florida leases dated after April 20, 2017 “have been revised to align with the state minimum by Florida state law.”
• Tesla's figures are for Tesla Lease Trust leases. For a car leased through a third-party lessor, Tesla says to ask that lessor.
• Hyundai and Kia publish a $1,000 deductible cap, but only for financed cars. For leases, both point to the lease agreement or a Lease Liability Insurance Addendum.

Brands that do not publish requirements

We found no published lease insurance figures for these captives. Mazda's FAQ, for example, says only “Please refer to your contract for insurance requirements.” That is not a sign the requirements are lower. It means the only reliable source is the insurance clause in your lease, or a call to the lender on your statement.

Why lessors require more than the state

On a lease the car belongs to the leasing company, not to you. Volvo Car Financial Services says it plainly: the leasing company owns a leased vehicle and is listed as loss payee “to ensure the proceeds from insurance settlements are used to repair damages to the vehicle.”

The additional-insured role covers the other risk. Volvo again: it “affords the leasing company protection under the liability section of the insurance policy.”

Five captives publish fixed liability numbers: GM Financial, Nissan/Infiniti, Mercedes-Benz, Volvo, and Tesla. Two of them qualify their own floors. Tesla's limits apply “unless you're subject to state-specific terms.” Nissan says its Florida leases dated after April 20, 2017 were revised to the state minimum “by Florida state law.” The others publish no state exceptions, so check your contract.

State minimum vs. lease requirement

State minimums are what you need to register and drive legally. The lease adds its own floor, and you have to meet both. Here are three states that come up in search suggestions for this question, from each state's own agency:

So a Californian leasing through GM Financial, Nissan/Infiniti, Mercedes-Benz, Volvo, and Tesla needs more than three times the state's bodily-injury limits. Someone leasing through Toyota/Lexus, BMW, and Ford Credit may be able to carry the state minimum for liability, but still needs comprehensive and collision under the deductible cap. Other states are not listed here. Check your state's DMV or insurance department for its figure.

What happens if your coverage lapses

The Federal Reserve's leasing guide is direct: “If you fail to keep the insurance coverage in force, you will be in default of your lease agreement.” It lists what can follow:

• When the lessor finds out, you may be told to get coverage immediately to avoid repossession.
• If the car stays uninsured, the lease may be terminated and the car repossessed.
• You may be liable for early termination charges.

Lenders find out in different ways. GM Financial says some insurers routinely report lapses to lienholders. Mercedes-Benz Financial Services says cancellation notices must reach it within 30 days of the effective date. Ford Credit's prospectus says the dealer confirms insurance at signing, and Ford Credit generally does not track it after that.

On financed cars, the CFPB says the contract usually lets the lender buy “force-placed insurance” if yours lapses. It protects only the lender, you are charged for it, and it is usually much more expensive than a policy you buy yourself. The CFPB describes this for auto loans. No captive above publishes a force-placed policy for leases, so read the insurance clause in your contract to see what yours allows.

There is a gap-coverage cost too. Mercedes-Benz says its lease gap waiver applies only “as long as your insurance is in place at the time of the loss.” Let the policy lapse and a total loss could leave you owing the difference.

Gap coverage is a separate question

None of the requirements above is gap coverage. Gap covers the difference between what insurance pays on a total loss and what you still owe on the lease. Some leases include a gap waiver: Tesla says its leases come with gap protection, and Mercedes-Benz waives the difference less your deductible. Many captives do not say either way. The gap guide covers how to check your contract in two minutes and when buying coverage is worth it.

Do you need gap insurance on a lease?: which captives include a waiver, and how to check yours

Budget insurance into the lease cost

Insurance at the lessor's limits is a cost of the lease that never shows up in the advertised payment, and it runs for the whole term. Get a quote for the exact limits and deductible your lessor requires before you sign, then add it to the payment when you compare offers.

Total lease cost calculator: add insurance to the full cost of the lease

What a lease really costs: the costs that are not in the advertised payment

Car lease taxes and fees by state