Leasing a new Ioniq 5 and noticed a discrepancy with the lease contract and the other paperwork we were given. The lease contract noted that we need to carry the state minimum for bodily injury and property damage, which in CA is 30k/60k for injury and 15k for property damage.
However, a supplemental insurance acknowledgment requires 100k/300k for injury and 50k property damage. Are we tied to the higher insurance requirements even though the lease contract itself just requires the minimum?
What is this?
Well, they own the car and they require higher coverage…BMW does also…probably should have these limits anyway and an umbrella too if you have decent net worth to protect.
That’s what supplementals or addendums are for; to modify any “original” contract language. Especially for areas where there is more higher $ litigation, supplementals/addendums give the ability to modify contract language without changing the “baseline” version. Makes sense?
If you have acknowledged receipt of or signed the addendum, that’s the amount you are required to maintain.
But if you really want clarity, it’d be best to confirm directly with HFS.
Most manufacturers require 100/300 on leased vehicles. If you don’t meet minimum coverage the lessor mandates, they may purchase an insurance policy for the vehicle and charge you for it. You don’t want that.
I am surprised people willingly have less insurance than that anyway.
Did you sign that insurance acknowledgement as part of your lease signing?
A lot of people don’t have any savings or assets to protect…
