How much is car insurance for a leased car?
Car insurance for a leased car may have different requirements than a car you own. Leased vehicles often require higher levels of coverage, including collision and comprehensive coverage, and this can increase your leased car insurance rates. Start comparing car insurance quotes for leased vehicles with our free tool below to see how much auto insurance for a leased car will cost you.
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Brad Larsen
Licensed Auto Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Auto Insurance Agent
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right cheap car insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare cheap car insurance quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.
UPDATED: Nov 27, 2023
It’s all about you. We want to help you make the right cheap car insurance coverage choices.
Advertiser Disclosure: We strive to help you make confident car insurance decisions. Comparison shopping should be easy. We are not affiliated with any one car insurance company and cannot guarantee quotes from any single company.
Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare cheap car insurance quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
- Even if you are leasing your car, you must car insurance coverage
- Auto insurance premiums for leased vehicles depend on a number of factors
- You should always understand the types of auto insurance available, what auto insurance discounts are around and how policy deductibles work before buying any car insurance policy
Car insurance rates for leased a car will always be higher than purchasing auto insurance for a financed vehicle or one you own outright. The reason for this has everything to do with the auto insurance requirements of your car leasing agreement and not state laws.
The only requirement is you comply with the laws of your state. The difference with leasing a car, however, the title is not in your name as the auto leasing company retains title to the car.
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How much more car insurance do you need for a leased car?
Depending on the car insurance laws of your state, you can assume the leasing company is certainly going to require a lot more auto insurance coverage than they lobby as “reasonable” amounts to your state representatives.
A good example is to look at Florida’s car insurance requirements.
In Florida, you are required to have $10,000 liability and $10,000 property damage coverage.
However, if you lease a car the finance company will require at least $100,000 in liability coverage.
Even though lease documents are crafted well enough for the lessor to avoid almost any liability, there is still a chance someone could break this shield and sue the car leasing company direct (since they legally own the vehicle).
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How much does leased car insurance cost?
Car insurance premiums leased vehicles depend on a number of factors including:
- Your driving record
- Type of vehicle
- Where you live
Your risk profile is the same regardless if you purchase or lease a car.
Why you pay higher car insurance premiums for a leased vehicle is you have to abide by the minimum car insurance requirements of the leasing company which are always higher than state requirements.
Why do people lease cars if auto insurance rates are higher?
Most drivers secure much more insurance coverage than state minimum requirements, so while it is true that auto insurance is more expensive for a leased car, it’s also not uncommon for many drivers to have the same policy coverage already.
Plus there are many advantages of leasing a vehicle including:
- Tax Deduction – Auto lease payments are generally tax deductible whereas an auto loan payment is not. This can be a deciding factor for persons who are self-employed.
- New Car Fever – Most lease terms are around 36 months so its an easy way for many drivers to always stay in a new car and not worry about the hassles of trying to sell a used car.
- Always in Warranty – This is a big factor for many drivers since you never have to worry about repair costs as most lease deals have a pretty comprehensive warranty for the term of the lease
You should always understand the types of auto insurance available, what auto insurance discounts are around and how policy deductibles work before buying any car insurance policy.
Ready to compare car insurance quotes? Simply enter your zip code below and start comparing quotes for FREE!
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Brad Larsen
Licensed Auto Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Auto Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about car insurance. Our goal is to be an objective, third-party resource for everything car insurance-related. We update our site regularly, and all content is reviewed by car insurance experts.