Car insurance

Cession


With a cession, a creditor transfers certain claims to another creditor. In leasing, a contract of cession is commonly used. When leasing a vehicle, benefits paid by comprehensive insurance (casco insurance) as a result of a total loss must be ceded to the car dealer or garage (lessor).

For this reason, taking out collision or full casco insurance (= comprehensive plus collision insurance) with a replacement value supplement is mandatory during leasing.