Cheapest Car Insurance for Leased Cars

Travelers is the cheapest insurance for leased cars for most drivers at $1,164/year. Leasing companies require higher liability limits and full coverage policies.

Find out below if you're overpaying for car insurance on your leased vehicle.

Written by Mark Fitzpatrick

Updated: February 11, 2026

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Key Takeaways

Travelers offers the lowest rates for leased cars, along with solid coverage options like accident forgiveness. GEICO is close behind, with competitive pricing and strong customer service.

Car lessors require full coverage car insurance, including liability, collision and comprehensive coverage, and may require higher liability limits than the state minimum.

You can save on leased car insurance by increasing deductibles, bundling policies, improving your driving record and credit score and applying discounts. Comparing quotes between three to five companies will help you get a cheaper rate.

What Is the Cheapest Insurance for Leased Cars?

Travelers has the cheapest full coverage insurance for leased cars among the companies MoneyGeek surveyed, with an average annual premium of $1,164, or $97 per month.

Leased vehicles require full coverage, which includes liability, comprehensive and collision coverage. Leasing companies require this level of coverage because they still own the car during the lease term. Full coverage adds comprehensive and collision to your liability policy, but it does not increase your liability limits.

Below are the average full coverage premiums from insurers in our study:


Travelers	$97	$1,164
Geico	$98	$1,179
Amica	$115	$1,381
State Farm	$121	$1,448
Progressive	$125	$1,503
Nationwide	$127	$1,526
Kemper	$127	$1,528
Chubb	$140	$1,680

Cheapest Insurance for Leased Cars by State

Car insurance costs vary by location, so the cheapest option is different in each state. South Dakota has the cheapest average full coverage rate for leased cars at $52 per month from Progressive. Vermont is close behind at $50 per month from Co-operative Insurance.

Louisiana has the most expensive leased car insurance in our study at $158 per month from GEICO. The District of Columbia and New Jersey also rank among the highest, at $108 per month from Chubb and $121 per month from NJM, respectively.

Check the table below to see the company with the cheapest leased car insurance rates in your state.


Alabama	AIG	$68	$817
Alaska	Geico	$84	$1,005
Arizona	Travelers	$86	$1,030
Arkansas	Farm Bureau	$86	$1,032
California	Geico	$90	$1,085
Colorado	American National	$74	$891
Connecticut	Geico	$76	$910
Delaware	Travelers	$74	$887
District of Columbia	Chubb	$108	$1,300
Florida	Travelers	$112	$1,349
Georgia	Auto Owners	$100	$1,201
Hawaii	Geico	$66	$787
Idaho	Geico	$53	$632
Illinois	Geico	$69	$830
Indiana	Geico	$63	$755
Iowa	Travelers	$66	$789
Kansas	Geico	$71	$853
Kentucky	Travelers	$94	$1,132
Louisiana	Geico	$158	$1,894
Maine	Travelers	$54	$644
Maryland	Geico	$84	$1,002
Massachusetts	Plymouth Rock Insurance	$67	$804
Michigan	Geico	$70	$841
Minnesota	Auto Owners	$75	$897
Mississippi	Farm Bureau	$95	$1,140
Missouri	Auto Owners	$79	$948
Montana	State Farm	$80	$957
Nebraska	Farmers Mutual Ins Co of NE	$67	$802
Nevada	Travelers	$106	$1,268
New Hampshire	MMG Insurance	$60	$718
New Jersey	NJM Insurance	$121	$1,453
New Mexico	Geico	$96	$1,147
New York	NYCM Insurance	$58	$700
North Carolina	State Farm	$56	$671
North Dakota	Geico	$56	$677
Ohio	Auto Owners	$68	$811
Oklahoma	Progressive	$89	$1,069
Oregon	Progressive	$81	$975
Pennsylvania	Travelers	$68	$815
Rhode Island	State Farm	$85	$1,025
South Carolina	American National	$64	$764
South Dakota	Progressive	$52	$621
Tennessee	Auto Owners	$77	$923
Texas	State Farm	$95	$1,135
Utah	Geico	$93	$1,118
Vermont	Co-operative Insurance	$50	$604
Virginia	Farm Bureau	$61	$736
Washington	Progressive	$99	$1,184
West Virginia	Erie Insurance	$91	$1,096
Wisconsin	Geico	$55	$655
Wyoming	American National	$63	$753

Best Affordable Leased Car Insurance: Buyer's Guide

You'll need higher liability limits and full coverage to meet your lessor's requirements. Understanding these requirements and exploring different cost-saving strategies can help you find the best car insurance for your leased car without overpaying.

How to Find the Cheapest Car Insurance for Leased Cars

Leased vehicles require full coverage with higher liability limits than owned cars. You can't drop to state minimums, but these lease-specific approaches will help you find the best car insurance to lower your costs without violating your lease agreement.

1
Understand your lessor's exact requirements
Review your lease agreement before shopping for car insurance coverage. Most lessors require 100/300/50 liability limits, comprehensive and collision coverage with deductibles capped at $500 or $1,000, and gap insurance. Knowing these minimums prevents you from paying for coverage you don't need.
2
Compare gap insurance costs carefully
Gap insurance covers the difference between your lease payoff and your car's actual cash value after a total loss. Dealerships charge $500 to $700 for gap coverage over your lease term. Your auto insurer typically charges $20 to $60 annually. Buying gap insurance through your auto policy instead of the dealership saves you $300 to $500 over a typical three-year lease.
3
Adjust deductibles within lease limits
Most lease agreements cap deductibles at $500 or $1,000. If your lessor allows $1,000 deductibles, choosing this higher amount over $500 lowers your premiums by $200 to $400 annually. Check your lease contract for the maximum allowed deductible before adjusting.
4
Shop before signing your lease
Get insurance quotes for your specific leased vehicle before finalizing the lease. Insurance costs vary significantly by model. A Honda Civic might cost $1,200 annually to insure with full coverage, while a luxury sedan could run $2,500. Factor these costs into your total lease budget.
5
Verify lessor-approved insurers
Some leasing companies maintain lists of approved insurance carriers or require specific financial strength ratings. Confirm your chosen insurer meets your lessor's requirements before purchasing. Switching insurers mid-lease because your lessor rejects your carrier wastes time and money.
6
Time your coverage to match your lease start
Coordinate your insurance effective date with your lease pickup date. Starting coverage too early wastes money on premiums for a car you're not driving yet. Most insurers let you schedule coverage to begin on a specific future date.
7
Plan for lease-end coverage adjustments
When your lease ends, you drop to lower coverage limits if you're not leasing or financing your next vehicle. Set a reminder 30 days before lease end to contact your insurer about adjusting coverage. This prevents paying for higher coverage after you return the vehicle.

What Are the Requirements for Insurance on a Leased Car?

Leased cars require full coverage insurance, including liability, collision and comprehensive. Collision protect your car if you cause an accident and comprehensive protects your car from storms, theft, or other damage. Some lessors also ask for extras like gap insurance or uninsured motorist coverage.

Required Coverage	Description
Liability Coverage	Covers bodily injury liability and property damage liability. Bodily injury covers the injuries of the other driver and the other car's passengers, while property damage covers the damage to the other driver's vehicle.
Comprehensive coverage	Pays for your car's damage from incidents other than collisions with other vehicles, such as theft, vandalism, natural disasters and fires.
Collision coverage	Pays for damage to your car caused by an accident involving another vehicle or an object, such as a tree, fence or light pole. Collision also covers rollover accidents and pothole damage.
Uninsured and underinsured motorist coverage	Pays for damage to your vehicle if you're in an accident with an uninsured driver or a driver without enough coverage to cover your damage and injuries. Some states require this coverage.
Personal injury protection	Pays for your medical bills and those of your passengers if you're in an accident. Some states require this coverage.
Gap insurance	Covers the difference between the value of a car and what you owe on it.

MONEYGEEK EXPERT TIP

Before leasing a car, get full coverage insurance in addition to your state’s minimum requirements. This protects the lessor’s investment because comprehensive and collision coverage pay for car damage. Some lessors may also require higher liability limits.

Cheapest Auto Insurance for Leased Cars: Bottom Line

Travelers offers the cheapest full coverage policy for leased car drivers at $1,164 per year, followed by GEICO at $1,179. Military members can save even more with USAA at $899.

Leased car insurance costs more than minimum coverage because most lessors require comprehensive and collision coverage along with higher liability limits. Some also mandate gap insurance to cover depreciation.

To save on insurance, compare quotes, use discounts and adjust deductibles. Use our comparison tool to find the best rate for your needs.

Cheap Car Insurance for Leased Cars: FAQ

We answer common questions to help you better understand car insurance for leased cars.

Do I need full coverage on a leased car?

Yes, you need full coverage on a leased car. Nearly all lessors require comprehensive and collision coverage in addition to liability insurance to protect their investment in the vehicle.

Can I use minimum coverage on a leased car?

No, you can't use minimum coverage on a leased car. Leasing companies require full coverage insurance because they own the vehicle and need comprehensive protection against damage, theft or total loss.

What happens if I don't have enough insurance on my leased car?

You risk violating your lease agreement if you don't have enough insurance coverage. The lessor can require you to purchase additional coverage immediately or terminate your lease early, leaving you responsible for remaining payments and penalties.

Do I need gap insurance when leasing a car?

Many lessors require gap insurance to cover the difference between what you owe on the lease and the car's actual cash value if it's stolen or totaled. Even if not required, gap insurance is recommended since leased cars depreciate quickly, especially in the first year.

What happens to my insurance when my lease ends?

You can cancel your car insurance policy when your lease ends if you're not getting another vehicle. However, if you plan to extend the lease, lease a new car, or buy the leased car, you'll need to update your policy and inform your provider about the changes.

Can I choose my own deductible on a leased car?

Your deductible choices are limited when leasing. Most lessors cap deductibles at $500 to $1,000 maximum for comprehensive and collision coverage. You can't choose deductibles higher than what your lessor allows.

Why is leased car insurance more expensive than regular car insurance?

Leased car insurance costs more because lessors require higher liability limits, mandatory comprehensive and collision coverage, lower deductible caps and often gap insurance. These requirements provide more coverage but increase your premium costs.

Is it more expensive to insure a leased car?

If you're used to paying for minimum coverage, car insurance for a leased vehicle costs more because lessors often require full coverage. However, it comes with more protection, including liability, comprehensive and collision coverage.

Best Cheap Car Insurance for Leased Cars: Our Methodology

Leasing a car means driving someone else's valuable asset, and your insurance needs differ from those of car owners. Leasing companies require specific coverage levels, and you'll face financial gaps that standard policies don't cover. We designed our research to address these challenges and help you find the right financial protection without overpaying.

Cheap Auto Insurance for Leased Cars: Related Pages

About Mark Fitzpatrick

Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. He has analyzed the insurance market for over five years, conducting original research for insurance shoppers. His insights have been featured in CNBC, NBC News and Mashable.

Fitzpatrick holds a master’s degree in economics and international relations from Johns Hopkins University and a bachelor’s degree from Boston College. He's also a five-time Jeopardy champion!

He writes about economics and insurance, breaking down complex topics so people know what they're buying.

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