Chrysler Capital Lease Insurance Requirements: Everything You Need To Know

Leasing a new car through Chrysler Capital comes with certain insurance requirements to protect you and the leasing company. Having the proper insurance coverage is an essential part of leasing a vehicle, so it’s important to understand Chrysler Capital’s specific insurance requirements for leased vehicles.

In this comprehensive guide, we’ll cover everything you need to know about Chrysler Capital lease insurance requirements, including:

• Types of required coverage
• Coverage limits
• Deductibles
• Loss payee and additional insured information
• Steps to take if you’re in an accident
• How to update your insurance information
• Penalties for lapsed coverage

Overview of Chrysler Capital Lease Insurance Requirements

All Chrysler Capital lease agreements require you to maintain physical damage insurance on the leased vehicle. This includes:

• Comprehensive coverage – Protects against theft, vandalism, and damage from weather or natural disasters
• Collision coverage – Covers damage from collisions with other vehicles or objects

Chrysler Capital does not actually sell insurance policies. You need to obtain the required coverage through your own insurance company.

Here are the key aspects of Chrysler Capital’s auto lease insurance requirements:

• Coverage limits must be at least equal to the vehicle’s value
• Maximum deductible of $1,000
• Chrysler Capital must be listed as loss payee
• Chrysler Capital must be listed as an additional insured

Failure to maintain the required insurance coverage constitutes a default under the terms of your lease. Chrysler Capital will force-place insurance if coverage lapses, and you will be responsible for the costs.

Required Coverage Limits

Your comprehensive and collision coverage limits must be at least equal to the actual cash value or replacement value of the leased vehicle.

The vehicle’s value is typically defined in your lease contract. Contact your insurance agent to ensure your limits adequately cover the leased vehicle’s value.

Having coverage limits that are too low can leave you financially responsible for losses that should be covered by insurance.

Maximum Deductibles

Chrysler Capital requires your comprehensive and collision deductibles to be no more than $1,000. Higher deductibles are not allowed.

With lower deductibles, you reduce potential out-of-pocket costs if you need to file a claim.

Loss Payee Information

Your insurance policy must list Chrysler Capital or the appropriate leasing subsidiary as the loss payee. This gives Chrysler Capital the right to receive payments if the leased vehicle is deemed a total loss.

Here are the correct loss payee addresses:

• Chrysler Capital Lease

  P.O. Box 4210

  Carmel, IN 46082

• CCAP Auto Lease Ltd.

  P.O. Box 4210

  Carmel, IN 46082

Provide your insurance company with the appropriate loss payee name and address.

Additional Insured Information

In addition to listing Chrysler Capital as the loss payee, your insurance policy must also list Chrysler Capital or the leasing subsidiary as an additional insured.

Being named as an additional insured provides further protection for Chrysler Capital’s financial interest in your leased vehicle.

Steps If You’re In An Accident

If you’re involved in an accident with your leased vehicle, you need to take the following steps:

• File a claim with your insurance company
• Obtain the claim number from your insurer
• Notify Chrysler Capital of the claim by:
  • Logging into your MyAccount and entering the claim information
  • Calling 855-563-5635 if you don’t have online account access
• Continue making your normal lease payments while your claim is processed
• Work with your insurer and Chrysler Capital throughout the claims process

Notifying Chrysler Capital promptly of any accidents or claims helps ensure efficient processing of your claim.

Updating Your Insurance Information

It’s important to notify Chrysler Capital any time your insurance coverage changes. You can update your policy information through:

• MyInsuranceInfo.com

• Fax a copy of your new policy to 800-713-0260

• Mail a copy to:

  Chrysler Capital Finance

  P.O. Box 3610

  Carmel, IN 46082

Be sure to allow 5-7 days for mailed copies to be processed.

Consequences for Lapsed Coverage

The terms of your Chrysler Capital lease make it a default if you fail to maintain the required insurance coverage at all times.

If your coverage lapses, Chrysler Capital will force-place insurance on your leased vehicle. This means Chrysler Capital will obtain coverage and charge you for the premiums and fees.

Force-placed insurance typically costs significantly more than what you would pay for voluntary coverage. The force-placed policy will only protect Chrysler Capital’s interest in the vehicle – not your interest.

Letting your insurance lapse can lead to higher insurance costs, potential out-of-pocket losses, and even early lease termination. It’s critical to maintain continual insurance coverage that meets Chrysler Capital’s requirements.

Review Insurance Requirements at Lease Signing

When you first lease through Chrysler Capital, carefully review the physical damage insurance requirements in your lease agreement.

Clarify anything you’re unsure of with your leasing agent and insurance company. It’s much easier to understand the requirements upfront versus discovering gaps in coverage later.

Shop Around for Competitive Insurance Rates

Don’t just automatically renew your old policy when leasing a new vehicle. Shop around to find competitive insurance rates.

Obtain quotes from multiple insurers. Compare factors like price, customer service, claims handling, and financial stability. A little research can save you hundreds on annual premiums.

Understand Insurer Selection Criteria

Insurance companies evaluate several criteria when pricing policies, including:

• Your credit-based insurance score – Better scores mean lower rates
• Your driving record – Multiple violations will increase your rates
• Your previous insurance history – Gaps in coverage are viewed negatively
• Your lease payment history – Missed or late payments can increase premiums

Maintaining excellent credit, a clean driving record, and responsible payment history can help you qualify for the lowest insurance rates.

Review Policy Discounts

Most insurance companies offer common discounts that can reduce your premiums, such as:

• Good driver discount
• Defensive driver discount
• Low mileage discount
• Multi-vehicle discount
• Anti-theft features discount
• Auto-pay discount
• Paperless billing discount

Discuss available discounts with insurance agents to maximize your savings. Combining multiple discounts can reduce your rates by 10% or more.

Understand Gap Insurance Coverage

Gap insurance covers the difference between the vehicle’s value and the remaining balance on your lease if it’s declared a total loss.

Gap insurance is not required in a Chrysler Capital lease, but can be a wise option to minimize financial risk. If you choose gap coverage, list Chrysler Capital as the loss payee.

Review Coverage Annually

It’s important to review your insurance coverage on at least an annual basis. Confirm your policy amounts keep pace with the vehicle’s depreciating value.

Report any changes in your driving record, number of miles driven, or other risk factors to your insurer. Adjust your deductibles if needed to control premium costs.

Staying on top of your policy ensures you meet Chrysler Capital’s lease insurance requirements at the best available rate.

Consult Insurance and Leasing Experts

Connecting with professionals can provide guidance when navigating Chrysler Capital’s lease insurance requirements:

• Insurance agent – Helps select coverages and carrier to meet lease requirements
• Leasing manager – Explains specifics of lease agreement insurance terms
• Financial advisor – Assesses insurance options to align with your financial situation

Leveraging the expertise of others helps minimize risks and confusion when arranging required insurance policies.

Shop Around at Lease End

As your lease nears maturity, compare insurance rates to find the best coverage for your next vehicle. Avoid overpaying by proactively lining up competitive insurance for your post-lease transportation needs.

Key Takeaways

• Chrysler Capital auto lease agreements require comprehensive and collision coverage
• Limits must equal the leased vehicle’s value; deductibles cannot exceed $1,000
• Chrysler Capital must be listed as loss payee and additional insured
• Notify Chrysler Capital promptly about accidents and update policy changes
• Consequences for lapsed insurance include force-placed coverage
• Carefully review requirements at lease inception to avoid gaps in coverage

Protecting your finances means understanding and following Chrysler Capital lease insurance requirements. With the proper insurance coverage in place, you can fully enjoy the benefits of leasing while minimizing risks.