Leased Vehicle Insurance Camden New Jersey NJ

Reader’s Question:

I had to increase the car insurance premium on my leased car in Camden, New Jersey, my insurance carrier is saying that this has to be increased on all my cars and cannot be done for just the leased vehicle. Is this true?

Thomas

Camden, NJ

The New Jersey Department of Banking and Insurance (DOBI) states that most insurance companies, if not all, require that the applicant chose 1 liability limit per car insurance policy regardless of the number of car’s insured as one could attempt, due to the car insurance policy term, to make a car insurance claim under the higher limit cars regardless of which car was involved in the accident.

A solution for this is to get a separate car insurance policy for your leased car. Obtaining a separate car insurance policy for the leased car would permit you to choose lower liability limits for the other cars on their car insurance policy.

So what your insurance carrier is telling you is true according to their underwriting rules. Most all insurance carriers require that the liability limits are the same on multiple vehicles which are on the same car insurance policy.

If you do not want to obtain a separate car insurance policy for the leased vehicle, then you could shop around for an insurance companies that would permit you to have different limits on one car insurance policy but I believe it would be hard to find an insurance company in Camden New Jersey that would permit this.

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