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3 year car lease including insurance fraud

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Zurich car insurance accident helpline A sign in Chicago offering space for lease.

A lease is a contractual arrangement calling for the lessee (user) to pay the lessor (owner) for use of an asset.[1] Property, buildings and vehicles are common assets that are leased. Industrial or business equipment is also leased.

Broadly put, a lease agreement is a contract between two parties, the lessor and the lessee. The lessor is the legal owner of the asset; the lessee obtains the right to use the asset in return for regular rental payments.[2] The lessee also agrees to abide by various conditions regarding their use of the property or equipment. For example, a person leasing a car may agree that the car will only be used for personal use.

The narrower term rental agreement can be used to describe a lease in which the asset is tangible property.[3] Language used is that the user rents the land or goods let or rented out by the owner. The verb to lease is less precise because it can refer to either of these actions.[4] Examples of a lease for intangible property are use of a computer program (similar to a license, but with different provisions), or use of a radio frequency (such as a contract with a cell-phone provider).

The term rental agreement is also sometimes used to describe a periodic lease agreement (most often a month-to-month lease) internationally and in some regions of the United States.[5]


  • 1 General terms
  • 2 Leases of land
  • 3 History of leases of land
  • 4 Types of tenancies
    • 4.1 Fixed-term tenancy or tenancy for years
    • 4.2 Periodic tenancy
    • 4.3 Tenancy at will
    • 4.4 Tenancy at sufferance
  • 5 Formalities
    • 5.1 Term
    • 5.2 Transparency and fine print
    • 5.3 Rent
    • 5.4 Exclusive possession
  • 6 Provisions specific to car rental
  • 7 Leasing property
    • 7.1 Deposit
    • 7.2 Insurance
  • 8 Sublease
  • 9 Equipment leasing
  • 10 See also
  • 11 References
  • 12 External links

General terms

A lease is a legal contract, and thus enforceable by all parties under the contract law of the applicable jurisdiction.

In the USA since it also represents a conveyance of possessory rights to real estate, it is a hybrid sort of contract that involves qualities of a deed.

Some specific kinds of leases may have specific clauses required by statute depending upon the property being leased, and/or the jurisdiction in which the agreement was signed or the residence of the parties.

Common elements of a lease agreement include:

  • Names of the parties of the agreement.
  • The starting date and duration of the agreement.
  • Identifies the specific object (by street address, VIN, or make/model,serial number) being leased.
  • Provides conditions for renewal or non-renewal.
  • Has a specific consideration (a lump sum, or periodic payments) for granting the use of this object.
  • Has provisions for a security deposit and terms for its return.
  • May have a specific list of conditions which are therein described as Default Conditions and specific Remedies.
  • May have other specific conditions placed upon the parties such as:
    • Need to provide insurance for loss.
    • Restrictive use.
    • Which party is responsible for maintenance.
  • Termination clause (describing what will happen if the contract is ended early or cancelled, stating the rights of parties to terminate the lease, and their obligations)

All kinds of personal property (e.g. cars and furniture) or real property (e.g. raw land, apartments, single family homes, and business property (including wholesale and retail)) may be leased. As a result of the lease, the owner (lessor) grants the use of the stated property to the lessee.

Leases of land

The narrower term 'tenancy' describes a lease in which the tangible property is land (including at any vertical section such as airspace, story of building or mine). A premium is an amount paid by the tenant for the lease to be granted or to secure the former tenant's lease, often in order to secure a low rent, in long leases termed a ground rent. For parts of buildings it is most common for users to pay also by collateral contract, or by the same contract, a service charge which is normally an express list of services in a lease to minimize disputes over service charges. A gross lease or tenancy stipulates a rent that is for the global amount due including all service charges.

A cancelable lease (UK: determinable/breakable lease) is a lease that may be terminated (formally determined) solely by the lessee or solely by the lessor without penalty. A mutually determinable lease can be determined by either. A non-cancelable lease is a lease that cannot be so terminated. Commonly, “lease” may imply a non-cancelable lease, whereas “rental agreement” may connote a cancelable lease.

Influenced by land registration, commonly tenancies initially granted for more than a year are referred to more simply as leases.[6]

The lease will either provide specific provisions regarding the responsibilities and rights of the lessee and lessor, or there will be automatic provisions as a result of local law. In general, by paying the negotiated fee to the lessor, the lessee (also called a tenant) has possession and use (the rental) of the leased property to the exclusion of the lessor and all others except with the invitation of the tenant. The most common form of real property lease is a residential rental agreement between landlord and tenant.[7] As the relationship between the tenant and the landlord is called a tenancy, this term generally is also used for informal and shorter leases. The right to possession by the tenant is sometimes called a leasehold interest. A lease can be for a fixed period of time (called the term of the lease). A lease may be terminated sooner than its end date by:

  • Break/Cancellation (this depends upon the terms of the lease)
  • A negotiated deed of Surrender or Yielding Up.
  • Forfeiture
  • By operation of statute (rare)

A lease should be contrasted to a license, which may entitle a person (called a licensee) to use property, but which is subject to termination at the will of the owner of the property (called the licensor). An example of a licensor/licensee relationship is a parking lot owner and a person who parks a vehicle in the parking lot. A license may be seen in the form of a ticket to a baseball game or a verbal permission to sleep a few days on a sofa. The difference is that if there is a term (end time), a degree of privacy suggestive of exclusive possession of a clearly defined part, practised ongoing, recurrent payments, a lack of right to terminate save for misconduct or nonpayment, these factors tend toward a lease; by contrast, a one-time entrance onto someone else's property is probably a license. The seminal difference between a lease and a license is that a lease generally provides for regular periodic payments during its term and a specific ending date. If a contract has no ending date then it may be in the form of a perpetual license and still not be a lease.

Under normal circumstances, owners of property are at liberty to do what they want with their property (for a lawful purpose), including dealing with it or handing over possession of the property to a tenant for a limited period of time. If an owner has granted possession to another (i.e., the tenant) then any interference with the quiet enjoyment of the property by the tenant in lawful possession is itself unlawful.

Similar principles apply to real property as well as to personal property, though the terminology differs. The right to sub-lease may or may not be permitted to a tenant. Where it is permitted, the lease granted directly by the owner is called a "headlease", or sometimes a "master lease". Headlease tenants and their tenants who may in turn also sublet are termed mesne /miːn/ landlords from the old French for middle. The headlease tenant has no right to grant a sublease which extends beyond the end of the headlease.[8]

To circumvent privity of estate which is the general principle flowing from privity of contract, laws exist in several jurisdictions to bind subtenants to some of the restrictive covenants (terms) of the headlease, for instance in England and Wales those which have been held by courts to touch and concern the land.[9]

A transfer of a remaining interest in a lease, assignment, is a type of (alienation) is often possible and an implied rights to assign exist by compulsory law or as a default position in some jurisdictions. Sharing or parting with possession can be a breach of certain leases resulting in action for forfeiture.

Enfranchisement is the obtaining of the landlord's title and is most commonly negotiated with the landlord where a tenant pays only a ground rent. Merger is where the landlord and tenant happen to be the same and can terminate a lease where there are no subtenants in certain jurisdictions.

History of leases of land

Over the centuries, leases have served many purposes and the nature of legal regulation has varied according to those purposes and the social and economic conditions of the times. Leases, for example, were mainly used for agricultural purposes until the late 18th century and early 19th century when the growth of cities in industrialized countries made leases an important form of landholding in urban areas.

The modern law of landlord and tenant in common law jurisdictions retains the influence of the common law and, particularly, the laissez-faire philosophy that dominated the law of contract and property law in the 19th century. With the growth of consumerism, consumer protection legislation recognised that common law principles, which assume equal bargaining power between the contracting parties, create hardships when that assumption is inaccurate. Consequently, reformers have emphasised the need to assess residential tenancy laws in terms of protection they provide to tenants. Legislation to protect tenants is now common.

Types of tenancies

Fixed-term tenancy or tenancy for years

A fixed-term tenancy or tenancy for years lasts for some fixed period of time. It has a definite beginning date and a definite ending date. Despite the name "tenancy for years", such a tenancy can last for any period of time—even a tenancy for one week may be called a tenancy for years. At common law the duration did not need to be certain, but could be conditioned upon the happening of some event, (e.g., "until the crops are ready for harvest" or "until the war is over"). In many jurisdictions that possibility has been partially or totally abolished.

A fixed term tenancy comes to an end automatically when the fixed term runs out or, in the case of a tenancy that ends on the happening of an event, when the event occurs. If a holdover tenant remains on the property after the termination of the lease, s/he may become a tenant at sufferance because the lessor/landlord has suffered (or allowed) the tenant to remain as a tenant instead of evicting him or her. Such a tenancy is generally "at will," meaning the tenant or the landlord may terminate it at any time, upon the providing of proper statutory notice.

Periodic tenancy

A periodic tenancy, also known as a tenancy from year to year, month to month, or week to week, is an estate that exists for some period of time determined by the term of the payment of rent. An oral lease for a tenancy of years that violates the Statute of Frauds (by committing to a lease of more than — depending on the jurisdiction — one year without being in writing) may actually create a periodic tenancy, depending on the laws of the jurisdiction where the leased premises are located. In many jurisdictions the "default" tenancy, where the parties have not explicitly specified a different arrangement, and where none is presumed under local or business custom, is a month-to-month tenancy.

Either the landlord or the tenant may terminate a periodic tenancy when the period or term is nearing completion, by giving notice to the other party as required by statute or case law in the jurisdiction. Neither landlord nor tenant may terminate a periodic tenancy before the period has ended, without incurring an obligation to pay for the months remaining on the lease. Either party must give notice if it intends to terminate a tenancy from year to year, and the amount of notice is either specified by the lease or by state statute. Notice is usually, but not always, at least one month, especially for the year-to-year periodic tenancy. Durations of less than a year must typically receive notice equal to the period of the tenancy - for example, the landlord must give a month's notice to terminate a tenancy from month to month. However, many jurisdictions have increased these required notice periods, and some have reduced the capacity of a landlord to use them drastically. For jurisdictions that have local rent control laws, a landlord's ability to terminate a residential tenancy is substantially reduced. For example, in California, the cities of Los Angeles, Santa Monica, West Hollywood, San Francisco, and Oakland have "rent stabilization ordinances" that limit a landlord's ability to terminate a periodic tenancy, among other restrictions.

The notice must also state the effective date of termination, which, in some jurisdictions, must be on the last day of the payment period. In other words, if a month-to-month tenancy began on the 15th of the month, in a jurisdiction with a last day requirement the termination could not be effective on the 20th of the following month, even though this would give the tenant more than the required one month's notice.

Tenancy at will

A tenancy at will is a tenancy which either the landlord or the tenant may terminate at any time by giving reasonable notice. Unlike a periodic tenancy, it isn't associated with a time period. It may last for many years, but it could be ended at any time by either the lessor or the lessee for any reason, or for no reason at all. Proper notice, as always with landlord/tenant law, must be given, as set forth in the state's statutes. If there is no formal lease, the tenancy at will is the one that usually exists. In rare cases it may occur where the tenancy is not for consideration. Under the modern common law, a tenancy at will without compensation is very rare, partly because it comes about only if the parties expressly agree that the tenancy is for no rent, commonly where a family member is allowed to live in a home (a nominal consideration may be required) without any formal arrangements. In most residential tenancies for a fixed term, for consideration, the tenant may not be removed except for cause, even if there is no written lease. (However, an oral lease for more than 12 months is not enforceable if the statute of frauds in the jurisdiction includes leases of more than 12 months.) Many residential leases convert to "at will" tenancy subject to 30-days notice. Alternatively, a tenancy at will (without a specific time limit) may exist for a temporary period where a tenant wishes to take possession of a property and the landlord agrees, but there is insufficient time in which to negotiate and complete a new lease. In this case, the tenancy at will is terminated as soon as a new lease is negotiated and signed. The parties may also agree on the basis that if the parties fail to enter into a new lease within a reasonable time period, then the tenant must vacate the premises.

If a lease exists at the sole discretion of the landlord, the law of the jurisdiction may imply that the tenant is granted, by operation of law, a reciprocal right to terminate the lease at will. However, a lease that explicitly exists at the will of the tenant (e.g. "for as long as the tenant desires to live on this land") generally does not imply that the landlord may terminate the lease; rather, such language may be interpreted as granting the tenant a life estate or even a fee simple.

A tenancy at will is broken, again by operation of law, if the:

  • Tenant commits waste against the property;
  • Tenant attempts to assign the tenancy;
  • Tenant uses the property to operate a criminal enterprise;
  • Landlord transfers his/her interest in the property;
  • Landlord leases the property to another person;
  • Tenant or landlord dies.

The specifics of these rules differ from jurisdiction to jurisdiction.

Subject to any notice required by law, a tenancy at will also comes to an end when either the landlord or the tenant acts inconsistently with a tenancy. For example, the changing of locks by the landlord is an indication of the end of the tenancy, as is the vacation of the premises by the tenant. However, in some jurisdictions, such as California, a landlord is prohibited from using a "self help" remedy, such as changing the locks, to terminate a tenancy, particularly a residential tenancy. Doing so may constitute a "constructive eviction" and expose the landlord to civil and criminal liability.

Tenancy at sufferance

A tenancy at sufferance (sometimes called a holdover tenancy) exists when a tenant remains in possession of a property after the expiration of a lease, and until the landlord acts to eject the tenant from the property. Although the tenant is technically a trespasser at this point, and possession of this type is not a true estate in land, authorities recognize the condition in order to hold the tenant liable for rent. The landlord may evict such a tenant at any time, and without notice.

The landlord may also impose a new lease on the holdover tenant. For a residential tenancy, this new tenancy is month to month. For a commercial tenancy of more than a year, the new tenancy is year to year; otherwise it is the same period as the period before the original lease expired. In either case, the landlord can raise the rent, so long as the landlord has told the tenant of the higher rent before the expiration of the original lease.


Formal requirements for a lease are determined by the law and custom of the jurisdiction in which real property is located. In the case of personal property, it is determined by the law and custom of the jurisdiction in which the rental agreement is made.[citation needed]

A tenancy for a duration greater than one year must be in writing in order to satisfy the Statute of Frauds.


The term of the lease may be fixed, periodic or of indefinite duration. If it is for a specified period of time, the term ends automatically when the period expires, and no notice needs to be given, in the absence of legal requirements. The term's duration may be conditional, in which case it lasts until a specified event occurs, such as the death of a specified individual. A periodic tenancy is one which is renewed automatically, usually on a monthly or weekly basis. A tenancy at will lasts only as long as the parties wish it to, and may be terminated by either party without penalty.

It is common for a lease to be extended on a "holding over" basis, which normally converts the tenancy to a periodic tenancy on a month by month basis. It is also possible for a tenant, either expressly or impliedly, to give up the tenancy to the landlord. This process is known as a "surrender" of the lease.

Transparency and fine print

Tom holliday sainsbury's car insurance Before signing any contract, read and understand the fine print.

As stated by the Australian Consumer Law (ACL), 2013, a lack of transparency regarding a term in a standard-form consumer contract may cause a significant imbalance in the parties’ rights and obligations.[10]

A term is considered transparent if it is:

  • expressed in reasonably plain language
  • legible
  • presented clearly
  • readily available to any party affected by the term

Terms that may not be considered transparent include terms that are hidden in fine print or schedules or phrased in complex or technical language.[10]


Rent is a requirement of leases in some common law jurisdictions, but not in civil law jurisdictions. In England and Wales it was held in the case of Ashburn Anstalt v Arnold that rent was not a requirement for there to be a lease, however the court will more often construe a licence where no rent is paid as it is seen as evidence for no intention to create legal relations. There is no requirement for the rent to be a commercial amount; a peppercorn or rent of some nominal amount is sufficient for this requirement.

Exclusive possession

A sharing arrangement with much of a landlord's property or, for no specific room of a building for instance, may defeat a finding of a lease, however this common requirement of a lease is interpreted differently in many jurisdictions.

Provisions specific to car rental

New york car insurance no fault This section does not cite any sources. Please help improve this section by adding citations to reliable sources. Unsourced material may be challenged and removed. (December 2013) (Learn how and when to remove this template message)

In addition to the above, a car rental agreement may include various restrictions on the way a renter can use a car, and the condition in which it must be returned. For example, some rentals cannot be driven off-road, or out of the country, or towing a trailer, without specific permission. In New Zealand you may have to specifically endorse a promise that the car will not be driven onto Ninety-Mile Beach (because of the hazardous tides).

There will certainly be a requirement to show a driver's license, and only those drivers appearing on the contract may be authorized to drive. It may include an option to purchase auto insurance (motor insurance, UK), if the renter does not already have a policy to cover rentals—another important consideration for multiple drivers. Some agencies may even require a bond payable if the car is not returned in order, often held in the form of a credit-card authorization—voided if the car is returned per agreement. A renter should be advised that he or she will be responsible for any tolls, parking or traffic violations incurred upon the vehicle during the rental period. There should also be advice on handling thefts, accidents, break-downs, and towing.

Further terms may include added fees for late returns, drop-off at a different location, or failure to top up the petrol immediately before the return.

Finally, there may be provisions for making a non-refundable deposit with a booking, terms for payment of the initial period (with discounts, vouchers, etc.), extended periods, and any damages or other fees that accrue prior to the return.

Leasing property

A rental agreement is often called a lease, especially when real estate is rented. Real estate rentals are initiated by a rental application which is used to build the terms of the lease. In addition to the basics of a rental (who, what, when, how much), a real estate rental may go into much more detail on these and other issues. The real estate may be rented for housing, parking a vehicle(s), storage, business, agricultural, institutional, or government use, or other reasons.

  • Who: The parties involved in the contract, the lessor (sometimes called the owner or landlord) and the lessee (sometimes called the renter or tenant) are identified in the contract. A housing lease may specify whether the renter is living alone, with family, children, room-mate, visitors. A rental may delineate the rights and obligations of each of these. For example, a "sub-let" to a stranger might not be permitted without permission of the landlord. This also applies to whether or not pets may be kept by the renter. On the other hand, the renter may also have specific rights against intrusions by the landlord (or other tenants), except under emergency circumstances. A renter is in possession of the property, and a landlord would be trespassing upon the renter's rights if entry is made without proper notice and authority (e.g., 24 hours' notice, daytime, knock first, except for emergency repairs, in case of fire, flood, etc.).
  • What: Rented real estate may include all or part of almost any real property, such as an apartment, house, building, business office(s) or suite, land, farm, or merely an inside or outside space to park a vehicle, or store things. The premises rented may include not only specific rooms, but also access to other common areas such as off-street parking, basement or attic storage, laundry facility, pool, roof-deck, balconies, etc. The agreement may specify how and when these places may be used, and by whom. There may be detailed description of the current condition of the premises, for comparison with the condition at the time the premises are surrendered.
  • When: the term of the rental may be for a night (e.g., a hotel room), weeks, months, or years. There may be statutory provisions requiring registration of any rental that could extend for more than a specified number of years (e.g., seven) in order to be enforceable against a new landlord.
A typical rental is either annual or month-to-month, and the amount of rent may be different for long-term renters (because of lower turnover costs). Leaving a long-term lease before its expiration could result in penalties, or even the cost of the entire agreed period (if the landlord is unable to find a suitable replacement tenant, after diligent pursuit). If a tenant stays beyond the end of a lease for a term of years (one or more), then the parties may agree that the lease will be automatically renewed, or it may simply convert to a tenancy at will (month-to-month) at the pro-rated monthly cost of the previous annual lease. If a tenant at will is given notice to quit the premises, and refuses to do so, the landlord then begins eviction proceedings. In many places it is completely illegal to change locks on doors, or remove personal belongings, let alone forcibly eject a person, without a court order of eviction. There may be strict rules of procedure, and stiff penalties (triple damages, plus attorneys' fees) for violations.
  • How much: Rent may be payable monthly, annually, or in advance, or as otherwise agreed. A typical arrangement for tenancy at will is "first and last month's rent" plus a security deposit. The "last month's rent" is rent that has yet to be earned by the landlord.


See also: Security deposit, Damage deposit, and Key money

The security deposit is often handled as an escrow deposit, owned by the tenant, but held by the landlord until the premises are surrendered in good condition (ordinary wear and tear excepted). In some states, the landlord must provide the tenant with the name and account number of the bank where the security deposit is held, and pay annual interest to the tenant. Other regulations may require the landlord to submit a list of pre-existing damage to the property, or forfeit the security deposit immediately (because there is no way to determine whether a prior tenant was responsible). In UK the government has introduced deposit protection scheme leading to several property inventory services which can optionally be used to carry out an inventory.[citation needed]


In order to rent (alternatively called lease) in many apartment buildings, a renter (lessee) is often required to provide proof of renters insurance before signing the rental agreement. There is a special type of the homeowners insurance in the United States specifically for renters — HO-4. This is commonly referred to as renter’s insurance or renter's coverage. Similar to condominium coverage, referred to as a HO-6 policy, a renter's insurance policy covers those aspects of the apartment and its contents not specifically covered in the blanket policy written for the complex. This policy can also cover liabilities arising from accidents and intentional injuries for guests as well as passers-by up to 150' of the domicile. Renter’s policies provide "named peril" coverage, meaning the policy states specifically what you are insured against. Common coverage areas are:

  • Accidental Discharge of Water[citation needed]
  • Fire or Lightning
  • Smoke
  • Theft
  • Vandalism or Malicious Mischief
  • Windstorm

Additional events including riot, aircraft, explosion, hail, falling objects, volcanic eruption, snow, sleet, and weight of ice may also be covered.[11]


In real estate law, sublease (or, less formally, sublet) is the name given to an arrangement in which the lessee (e.g. tenant) in a lease assigns the lease to a third party, thereby making the old lessee the sublessor, and the new lessee the sublessee, or subtenant. This means they are not only leasing the property, but also subleasing it simultaneously. For example, if a company leases an office space directly from a landlord, the lessor, and subsequently outgrows the office, then the company can sublease the smaller office space to another company, the subtenant, and enter into a new lease for a larger office space, thereby hedging their real estate exposure.[citation needed]

The sublessor remains liable to the original lessor in accordance with the initial lease, including all remaining rent payments, including operating expenses and all other original lease terms. In a down-market, the original lessee may require a lower rent payment from the sublessee than what he or she may have originally paid, leaving the remaining rent owed to the lessor to be paid by the original lessee. However, if market prices have increased since the original lease was signed, the sublessor might be able to secure a higher rent price than what is owed the original lessor. However, many commercial leases stipulate that any overages in rent be shared with the landlord, the lessor.

In residential real estate, it is sometimes illegal to charge the subtenant more than the original amount in the sublessee's contract (for instance, in a rent control situation where the rental amount is controlled by law). Subletting of social housing is generally illegal, whatever the rent charged to the subtenant; in the UK it is officially described as a category of housing fraud.[12]

A sublease can also apply to vehicles as an alternate type of car rental. In a vehicle sublease, a lessee or vehicle owner can assign a lease to a third party and by way of contractual agreement for specific dates. Although this arrangement is not popular, it is a growing trend in the travel industry as a less expensive alternative for travelers and locals.

Equipment leasing

Leasing is also used as a form of financing to acquire equipment for use and purchase.[13] Many organizations and companies use lease financing for the acquisition and use of many types of equipment, including manufacturing and mining machinery, vessels and containers, construction and off-road equipment, medical technology and equipment, agricultural equipment, aircraft, rail cars and rolling stock, trucks and transportation equipment, business, retail and office equipment, IT equipment and software.[13]

Lease financing for equipment is generally provided by banks, captives and independent finance companies.[14][15]

In the United States, leases of goods are generally governed by Article 2A of the Uniform Commercial Code (UCC) as adopted by the various jurisdictions.

See also

  • Ecoleasing
  • Finance lease
  • Leasehold
  • Leasehold valuation tribunal
  • Leveraged lease
  • Operating lease
  • Recital (law)
  • Renting
  • Vehicle leasing


  1. ^ Stickney and Weil 2007 p. 791 (Glossary of Financial Accounting: An Intro. to Concepts, Methods, and Use 12e).
  2. ^ http://www.accaglobal.com/sg/en/student/acca-qual-student-journey/qual-resource/acca-qualification/f7/technical-articles/accounting-for-leases.html
  3. ^ 34 Am. Jur. 2d Federal Taxation ¶ 16762 Section 467 rental agreements defined: “A rental agreement includes any written or oral agreement that provides for the use of tangible property and is treated as a lease for federal income tax purposes."
  4. ^ It is possible to rent in such a way many things such as domestic animals, electrical appliances, handbags and jewelry."If you want it, rent it ... from a 'must have' handbag to an Aston Martin", The Observer, 2009-01-04. Retrieved on 2009-09-09.
  5. ^ http://www.dca.ca.gov/publications/landlordbook/before-rent.shtml
  6. ^ For land in the UK, a tenancy or lease granted for more than 7 years must be registered at the land registry and a tenancy or lease for more than 3 years must be granted and witnessed by using a deed. HM Land Registry Practice Guide 25. Retrieved 2012-07-08 and s52(1) LPA 1925)
  7. ^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey: Pearson Prentice Hall. p. 523. ISBN 0-13-063085-3. 
  8. ^ "Real Estate Glossary Business Dictionary Definition Head Lease". www.bizoptions.com. Retrieved 2010-08-05. 
  9. ^ City of London Corporation v Fell [1994] 1 A.C. 459
  10. ^ a b "Rental cars: An industry guide to the Australian Consumer Law" (PDF). Australian Consumer Laws. Commonwealth of Australia. 2013. Retrieved 9 May 2016.  This article contains quotations from this source, which is available under the Creative Commons Attribution 3.0 Australia license.
  11. ^ ^ Wiening, Eric; George Rejda; Constance Luthardt; Cheryl Ferguson (2002). Personal Insurance (1st ed.). Malvern, Pennsylvania: American Institute for Chartered Property Casualty Underwriters/Insurance Institute of America. ISBN 0-89463-108-X. 
  12. ^ Tracking down England's council house sublet cheats, Panorama, BBC, 4 May 2011
  13. ^ a b "Industry Overview". Equipment Leasing and Finance Association. Retrieved 21 September 2014. 
  14. ^ "Industry News: Around the Industry". Retrieved 21 September 2014. 
  15. ^ "Equipment Financing On The Rise". Retrieved 21 September 2014. 

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Car insurance groups 1 50 explained synonyms


Florida auto insurance has some unique qualities compared with insurance in other states, and we’ll help you understand it all. Here we provide Florida auto insurance requirements, our recommendations for the coverage you should buy, and insurance laws that are specific to Florida. Also, you can see average car insurance rates for nearly every ZIP code in Florida to help inform you as you shop for auto insurance in the Sunshine State.

The average car insurance rate in Florida is $1,402 a year. Car insurance companies use different formulas and weigh risks differently for each driver. This means rates can vary significantly by insurer, which is why you should compare rates. For example, in Miami ZIP code 33142, the highest rate among six carriers is $3,227. That’s over $2,000 more than the lowest ($1,136).

Cheap car insurance in Florida

Florida car insurance requirements

State law requires the following coverages:
Personal Injury Protection $10,000
Minimum property damage liability $10,000

Florida car insurance laws mandate that drivers carry $10,000 of personal injury protection (PIP). It covers you, your passengers and other authorized drivers of your car who are injured while in your insured vehicle. You also must have $10,000 of property damage liability to pay for damage to others’ cars.

You certainly can drive with just the minimum coverage mandated by the state. But we strongly recommend that you also purchase bodily injury liability coverage. This pays, up to your policy limits, for injuries others receive in an accident caused by you or other drivers listed on your policy. While not required by the state, many car insurance companies require it as part of any policy they issue in Florida. Here's why: Florida is a no-fault state. Treatment for any injuries you suffer is covered by your personal injury protection, up to its limit. This is regardless of who caused the accident. If bills exceed that limit, the at-fault driver is legally personally responsible unless he or she has bought bodily injury liability coverage.

If you buy bodily injury liability coverage, the smallest amount you can buy is $10,000 per person (up to $20,000 per accident). Homeowners and those with substantial assets need more than that.

Buying the recommended liability coverage with comprehensive insurance and collision coverage will cost more, but generally won’t break the bank. Increasing your insurance from the state minimum to full coverage with a $1,000 deductible costs, on average, $1,352 more, or $113 a month.

Coverage limits Average annual rate
PIP and property damage liability state minimum $1,058
Liability Only - 50/100/50 BI/PD $1,372
Full Coverage - 100/300/100 BI/PD
$1,000 Comp/Collision deductible
Full Coverage - 100/300/100 BI/PD
$500 Comp/Collision deductible
Full Coverage - 100/300/100 BI/PD
$250 Comp/Collision deductible

*The table shows the average annual rate of 10 ZIP codes in the state from the following carriers, in no particular order: Progressive, Allstate, State Farm, Nationwide, GEICO and Farmers. Data was provided for CarInsurance.com by Quadrant Information Services. Florida minimum liability and bodily injury coverage compared to comprehensive and collision with 100/300/100 liability coverage with a $1,000 deductible.

Recommended car insurance coverage

The best car insurance in Florida may not be the cheapest, so how much insurance should you buy? Bare-bones coverage may be a good choice if you have few assets or have an old car and don’t drive much. But if you have a home and investments, consider buying more insurance. If you don’t, you’re at risk for having your money and house taken to cover the cost of an accident. If you financed your car you will be required to get additional comprehensive and collision coverage.

Use our How Much Car Insurance Do You Need? tool to get a recommendation.



We recommend you buy more insurance than is required to legally drive a car in your state, especially if you have savings and assets. The more money you have, the more likely you are to be sued following a car accident should your insurance be insufficient to cover all the expenses. If your net worth is:

  • less than $50,000, choose at least 50/100/50
  • between $50,000 and $100,000, choose at least 100/300/100
  • more than $100,000, choose at least 250/500/100

If you're leasing or financing your car, you must get coverage of 100/300/100 or higher.

Collision and comprehensive

Collision coverage pays for damage to your car after an accident that you cause. Comprehensive insurance pays to replace stolen cars and for damages from vandalism, flooding, hail, fire and animal strikes. These are optional, and, typically affordable to add to a policy. The average annual rate for collision for Florida drivers is $242, comprehensive is $107, according to the Insurance Information Institute. If your car is:

  • less than 10 years old, you should strongly consider buying collision and comprehensive.
  • more than 10 years old, only buy collision and comprehensive if your car is worth $3,000 or more, if you couldn’t afford to replace your car if it’s wrecked, or if you just want more protection on your policy.

If you buy comp and collision, check our guide to choosing a deductible amount.

Uninsured/underinsured motorist

These are both optional coverages and should match the liability limits you choose. Uninsured motorist coverage and underinsured motorist coverage pays for damages if you’re hit by a driver with no insurance or a driver with coverage that’s insufficient to pay for your repairs and medical expenses.

Medical coverage (MedPay)

Medical payments coverage can help pay for the medical or funeral expenses of covered drivers and passengers after an accident, regardless of fault, up to $25,000. In most states, including Florida, it's an optional addition to your car insurance policy. Because Florida requires you to carry PIP, you likely don't need MedPay coverage. That's because PIP provides coverage equal to and beyond MedPay. However, one benefit of MedPay is that there's no deductible. Another is that it covers passengers in your car who have no health insurance. Finally, Florida PIP pays only 80 percent of your medical expenses, so MedPay would cover the remaining 20 percent of costs for your injuries. MedPay does the following:

  • Covers you and your passengers’ medical expenses
  • Pays for expenses after health insurance limits are exceeded
  • Offers additional protection to insured drivers who are hit by a car while walking or biking

If you and your passengers:

  • Don’t have health insurance, or have a plan that doesn’t cover car accidents or has low limits, we recommend that you add medical coverage of at least $5,000 to your car insurance policy.
  • Do have health insurance, it’s still a good idea to have medical coverage if you want the best protection in your policy, as it can pay out after your health benefits are maxed out. It is especially a good idea if your health plan has high deductibles you must pay before treatment is covered.

Gap insurance

If you don’t own your car outright and have an accident, gap insurance pays the difference between the cash value of your car and the current outstanding balance on your loan or lease.

  • If you’re financing your car, your car is less than one year old and you’ve put less than 20 percent down on it, you should buy gap insurance. If not, you don’t need gap insurance.
  • If you’re leasing your car, it’s a good idea to buy gap insurance if you aren’t already required to in your lease agreement.
  • If you own your car outright, you don’t need gap insurance.

Car insurance companies in Florida

Scores are based on Insure.com’s “Best Insurance Companies” customer review survey of 3,700 customers. Companies not in the top 10 of market share do not qualify. All scores are out of 100.

Best car insurance companies in Florida

Best customer service:

  1. USAA – 100
  2. State Farm – 92
  3. Allstate – 91.8
  4. Travelers -- 90.6
  5. Geico – 88.7

Best claims service:

  1. USAA – 100
  2. Travelers – 97.5
  3. Liberty Mutual – 96
  4. Geico –93.9
  5. Progressive – 92.5

Best value for the price:

  1. USAA – 91.3
  2. Travelers – 88.8
  3. Progressive – 86.3
  4. State Farm – 84.6
  5. Geico – 81.1

Largest car insurance companies in Florida

Rank Company Name Direct premiums written Market share % Overall Customer Review Ranking
1 Geico 3,350,186 21.23% 88.1
2 State Farm Insurance Group 2,629,971 16.677% 90.4
3 Progressive Insurance Group 2,223,111 14.09% 89.6
4 Allstate Insurance Group 1,816,486 11.51% 87
5 USAA Group 1,038,087 6.58% 97.2
6 Liberty Mutual Insurance Companies 512,902 3.25% 86.4
7 Farmers Insurance Group 450,524 2.85% 81.1
8 Infinity Property & Casualty Group 444,809 2.82% n/a
9 Travelers Group 336,639 2.13% 91.2
10 Windhaven Insurance Company 275,976 1.75% n/a

Source: A.M. Best market share rankings are based on direct premiums written in 2015.

Customer review rankings based on Insure.com's 2016 "Best Insurance Companies" survey of 3,700 customers. Scores are out of 100.

Car insurance in Florida cities

Find out what the most expensive and the cheapest car insurance rates are by ZIP code, as well as how they compare statewide.

Tampa car insurance

Jacksonville car insurance

Miami car insurance

Orlando car insurance

Florida car insurance laws and resources

Florida mature driver discount

Florida law says that drivers age 55 and older get a 10 percent discount on their rates if they pass a state-approved driving course. The discounted rate applies to the liability (bodily injury and property damage), personal injury protection, and collision portions of your policy. You will get the discounted rates for three years if you don’t cause an accident and have no moving violations on your record.

How much will a speeding ticket raise my car insurance rates?

Typically insurers review your driving record upon renewal, and will raise your rates if you have a speeding ticket. This higher rate typically lasts for three years. A speeding ticket in Florida will raise your rates, on average, by 15 percent, according to our analysis of rates based on Quadrant Information Services data.

Hurricane warning

Hurricanes and tropical storms threaten Florida each year. Comprehensive coverage will repair the damage to your vehicle for hail and flooding -- but you can't wait too long to buy it. Make sure to get the coverage in effect before a storm warning is issued. Otherwise you may be out of luck. Most insurers will not allow you to buy extra insurance once a tropical storm or hurricane watch/warning is issued. You’ll have to wait 48 to 72 hours after it’s lifted to buy more coverage.

No-deductible windshield repair or replacement

In an effort to get drivers to repair cracked or damaged windshields, Florida state law says that your comprehensive coverage deductible isn't applicable for windshield damage.


If a vehicle is in Florida for more than 90 days during a 365-day period (the days do not have to be consecutive), you must purchase personal injury protection and property damage liability limits. You must get at least the state minimum limits. See "Car insurance for snowbirds" for more information.

Uninsured motorist coverage and penalties for driving in Florida without insurance

Florida is second in the nation for the percent of uninsured drivers on the road – 24 percent. (Oklahoma is No. 1 with 26 percent.) That’s why it’s wise to carry uninsured motorist coverage. It helps pays for damages when you’re in an accident with an uninsured driver.

If you’re the one driving without coverage and you’re busted, you may have to pay a $30 fine and your registration and license may be suspended and your plates confiscated. You may also be required to file an SR-22 form. If your license and registration are suspended, you will have to pay a $150 reinstatement fee upon renewal.

Seat belt law

If you're a driver or passenger and are ticketed for a seat belt violation, you will not get a point on your record; however, if the ticket is for a child restraint offense, it comes with three points. The fine is $30 per adult and $60 per child, plus administrative and court costs.

Expired registration

Registrations issued in your name expire at midnight on the day of your birth date, except for mobile homes and commercial vehicles. The fine for a tag that is expired for less than six months is around $100 and a tag expired six months or more can come with jail time up to 60 days and/or a fine of up to $500.

Insurance fraud

Florida is notorious for car insurance fraud. It has more questionable claims than any other state, with con men frequently taking advantage of its no-fault insurance law, which requires all drivers to carry $10,000 in personal injury protection coverage for injuries suffered in a car crash.

Florida senior driver law

Drivers over age 80 must renew their license every six years, compared with every eight years for younger people. Additionally, people 80 and older must pass an eye exam with every renewal.

Florida also allows confidential reporting of a possibly unsafe driver by anyone – doctor, law enforcement, relative or bystander. Officials may ask those drivers to submit medical reports from their doctor or to undergo testing at a driver license office.

Florida FR-44

In order to have your Florida driver’s license reinstated after a DUI, you must bump up your coverage and submit proof that you did so. You must submit verification that you are carrying increased liability insurance ( 300/100/50). Proof of this increased insurance coverage must be provided by filing a form. It is called the Florida Uniform Financial Responsibility Certificate. It is commonly known as the “FR-44 form.” You will have to keep FR-44 coverage in place for three years.

Your insurer will file the form with your state motor vehicle department for you. Be aware, however, that not all insurers will process FR-44 forms. Contact our call center toll-free at 1-855-430-7753. Our agents will help you obtain a quote for the coverage you need. Most companies we work with can provide immediate proof of insurance via e-mail or fax.


Car Insurance in Rhode Island

All drivers in Rhode Island must have liability coverage, and all liability insurance policies must offer uninsured motorist coverage. This coverage option is helpful, because around 15% of the cars on the state's roads are uninsured.

Read below to learn more about required and optional car insurance coverage, as well as discounts and other details about car insurance rates.

RI Car Insurance Requirements

RI drivers must have liability insurance to help cover another driver's expenses resulting from an accident for which you are at fault.

In addition, all Rhode Island auto insurance policies must offer uninsured/underinsured motorist coverage, but you can decline this coverage if you choose.

Liability Coverage

If you are found to be at fault for a car accident, liability coverage helps pay for:

  • Damage to someone else's property.
  • Injuries to the other driver and/or passengers.

The minimum coverage limits you can purchase in Rhode Island are:

  • Bodily injury coverage:
    • $25,000 per person.
    • $50,000 total per accident.
  • Property damage coverage:
    • $25,000 per accident.

You can purchase coverage with higher limits, which will increase your insurance rates but offers more coverage.

Uninsured/Underinsured Motorist Coverage

All car insurance policies in Rhode Island must include uninsured/underinsured motorist coverage equal to the limits of your liability coverage (see above for limits).

Uninsured/underinsured motorist coverage pays for your property damage and injuries if you are involved in:

  • A hit and run accident.
  • An accident in which the at-fault driver:
    • Does not have car insurance.
    • Does not have enough insurance.

You can decline uninsured motorist coverage. However, remember that an estimated 15% of cars in Rhode Island are uninsured, so uninsured motorist coverage can give you important protection.

Optional Auto Insurance in RI

RI car insurance policies can also include optional insurance coverage types that provide protection in other situations.

These optional coverage types help pay for damages, injuries, and other expenses:

  • Collision coverage: Pays for damage to your vehicle in an accident you cause.
  • Comprehensive coverage: Pays for damage to your car caused by non accident-related factors like severe weather, theft, or wildlife.
  • Medical payments coverage: Provides additional coverage to help pay medical expenses.
  • Rental reimbursement coverage: Reimburses you if you need to rent a car after an accident.
  • Towing and labor coverage: Pays for towing costs when your car breaks down and cannot be driven.

NOTE: If you are financing or leasing your car, you are required to buy collision coverage and comprehensive coverage.

Proof of Insurance

You are required by law to carry proof of insurance in your car at all times.

Acceptable proof of insurance is an insurance card or photocopy of an insurance card showing the car owner's name.

Traffic Stops or Accidents

Failure to provide proof of insurance when you are stopped by a police officer or involved in an accident will result in a $500 fine.

RI Vehicle Registration

When you register your car or renew your registration, you will be required to sign a form verifying that you have valid car insurance.

RI Driver's License

To apply for or renew your Rhode Island driver's license, you must sign a statement obligating you to carry proof of insurance with your vehicle registration at all times.

Insurance Violations

The Rhode Island DMV checks car insurance by sending requests for car insurance verification to drivers involved in accidents, and to randomly selected drivers and registered vehicle owners.

If you do not have car insurance, you face fines and driver's license suspension or revocation.

Insurance Verification in Rhode Island

You will receive an insurance verification request if you are involved in a car accident.

Verification requests are also sent to:

  • A random selection of Rhode Island vehicle owners.
  • A random selection of drivers:
    • Whose registration has been suspended for auto insurance violations in the last 4 years.
    • Whose driver's license has been suspended in the last 4 years.
    • Who have bought a car in the past 4 years while the car's registration was suspended for an insurance violation.

If you receive an insurance verification request, you must respond within 20 days.

Penalties for Driving Without Insurance in RI

Failure to provide verification of valid car insurance will result in:

  • A fine of $500 to $5,000.
  • Revocation of your vehicle registration and license plate:
    • First offense: 3 months.
    • Second offense: 6 months.
    • Third and additional offenses: 1 year.

The violation is a misdemeanor offense, which can carry a prison sentence of up to 1 year.

Alternative Insurance for High-Risk Drivers

You may be considered a high-risk driver if you have violations, at-fault accidents, suspensions, or other infractions on your driving record.

If you cannot find a car insurance company that will offer you coverage because of your status as a high-risk driver, you can buy car insurance through the Rhode Island Automobile Insurance Plan (RIAIP).

The RIAIP will assign an auto insurance company to cover you.

You can contact the RIAIP by phone, by e-mail, or by fax:

  • Phone: (401) 946-2600.
  • E-mail: riaip@aipso.com.
  • Fax: (401) 528-1409.

The rates you pay through the RIAIP can be very expensive, so make sure you have shopped around thoroughly before applying for RIAIP coverage.

SR22 Insurance in RI

If you have had your driver's license or vehicle registration suspended or revoked, you may be required to have SR-22 as proof of future financial responsibility before your license or registration can be reinstated.

In Rhode Island, SR-22 certification (also called SR22 insurance) is required to reinstate your license or registration after suspension due to:

  • Vehicular manslaughter.
  • DWI or DUI.
  • A felony involving a motor vehicle.
  • Committing a hit and run.
  • Perjury or false statements made to the RI MVD.
  • Conviction of 3 reckless driving violations within 12 months.
  • Using a forged license to buy alcohol.
  • Other violations at the discretion of the Rhode Island MVD.

SR-22 certification can be removed after 1 year IF you have not had any additional convictions.

Your insurance company must file the SR-22 insurance with the RI DMV.

This requirement can be expensive. The best way to avoid it is to drive safely and maintain a clean driving record.

Insurance Complaints and Fraud

Rhode Island car insurance is regulated by the State of Rhode Island Department of Business Regulation, Insurance Division.

The Insurance Division reviews auto insurance rates to ensure that they are fair.

They also handle complaints and investigate insurance fraud.

Insurance Complaints

If you have a concern or complaint about a car insurance provider, you can contact the Insurance Division for help:

  • Submit the Consumer Complaint online form.
  • Send supporting documents and a copy of the complaint form:
    • By mail:
        State of Rhode Island and Providence Plantations
        Department of Business Regulation
        Insurance Division
        1511 Pontiac Avenue
        Cranston, RI 02902
    • By fax: (401) 462-9602.

Auto Insurance Fraud

Car insurance fraud can take many forms, including:

  • Forged insurance documents.
  • False or exaggerated claims.
  • Staged car accidents.

If you suspect insurance fraud, you can report it to the Rhode Island Auto Theft and Fraud Unit by calling (401) 444-1035.

Fraud can cost insurance companies a lot of money, which can result in increased rates. Therefore, reporting fraud can help keep your premium low.

RI Car Insurance Rates

In Rhode Island, car insurance premiums are based on several factors, including:

  • Your driving record.
  • Your age, gender, and marital status.
  • Your insurance coverage:
    • History, including lapsed or canceled policies.
    • Type of coverage selected.
    • Limits of the coverage you choose.
    • Your deductible (amount you pay towards a claim).
  • Specific information about your car, including:
    • The make, model, and year.
    • Location where your car is kept.
    • How your car is used.
  • Your credit report.

These factors are used to determine your rate group, which in turn determines how high or low your rates are.

RI Car Insurance Discounts

Many car insurance companies in Rhode Island offer discounts that can lower your auto insurance premiums.

When getting car insurance quotes for comparison, ask about the availability of these rate discounts:

  • Multiple policies with the same insurance company.
  • Multiple vehicles on one policy.
  • Renewing your policy each year.
  • Accident-free driving.
  • Safety devices in your car, like airbags.
  • Anti-theft devices, like security systems.
  • Low annual mileage on your car.
  • Driver training courses for teenaged or older drivers.
  • Good grades for student drivers.

To get the most affordable car insurance in Rhode Island, be sure to compare the rates offered by different insurance companies, consider a higher deductible, and maintain a good driving record.

Most Stolen Cars in Rhode Island

Owning a car that is a common target for theft can lead to higher car insurance rates.

The following is a list of Rhode Island's most stolen cars in 2013, according to www.nicb.org:

  1. Nissan Maxima.
  2. Honda Accord.
  3. Dodge Caravan.
  4. Honda Civic.
  5. Toyota Camry.
  6. Nissan Altima.
  7. Jeep Cherokee/Grand Cherokee.
  8. Toyota Corolla.
  9. Plymouth Voyager.
  10. Ford Pickup.


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