Updated: July 21, 2025
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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.
Most 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 and applying discounts. Shopping around is key to finding the best rates.
At an average of $1,164 per year, Travelers' full coverage auto insurance is the cheapest for leased cars among the companies MoneyGeek surveyed. Full coverage insurance is best for leased cars since most lessors require liability, comprehensive and collision coverage.
| 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 |
| Farmers | $152 | $1,822 |
| UAIC | $152 | $1,829 |
| AAA | $160 | $1,916 |
| Allstate | $161 | $1,937 |
| AIG | $215 | $2,576 |
Car insurance costs vary by location, so the cheapest option will differ. Check the table below to see the company with the cheapest leased car insurance in your area.
| 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 |
In most cases, you'd 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.
While insuring a leased car costs more, especially if you're used to state minimum policies, there are ways to find the best car insurance quotes. Strategic approaches can help you save while meeting your lessor's requirements.
Comparing quotes from multiple providers can help you find the best rates. Because insurers calculate premiums differently, switching car insurance providers can save you money. Get at least three quotes and compare them based on cost, discounts, reviews and perks.
Your collision and comprehensive deductible is the amount you pay out of pocket before your insurance covers the rest. Higher deductibles mean lower monthly premiums. You'll pay more upfront if you file a claim, but most lessors cap deductibles at $1,000 anyway. If you rarely file claims, this simple switch can save you hundreds per year.
Leasing companies often require full coverage, including comprehensive, collision and higher liability limits. While minimum liability coverage usually isn't an option, you can adjust other coverage to save money. For instance, consider dropping optional add-ons like roadside assistance or rental car reimbursement if your lessor doesn't require them.
Bundle your auto insurance with home, renters or other policies from the same insurer. Multi-policy discounts can provide substantial savings and simplify your insurance management with a single provider for multiple coverage types.
Many insurers offer usage-based insurance programs that monitor your driving habits through mobile apps or devices. Safe drivers can earn discounts based on factors like smooth braking, safe speeds and limited night driving.
Take advantage of discounts that apply to your situation, such as good student discounts for young drivers maintaining high grades, military discounts for active duty and veterans, or professional organization discounts through your employer or associations.
Many insurers provide discounts for completing approved defensive driving courses. These can help refresh your skills and reduce your premiums. The discount often applies for multiple years.
Many insurers consider credit scores when calculating car insurance premiums. Lower scores often result in higher rates. To improve your score and secure lower premiums, pay your bills on time, reduce your debt and regularly check your credit report for errors.
Insurance rates can vary based on when you purchase coverage. Avoid buying insurance at the last minute, as you might miss advance purchase discounts. Also, consider the timing of your lease start date because some insurers offer better rates at certain times of the year.
If you haven't selected your leased vehicle, consider how different models affect insurance costs. Vehicles with better safety ratings, lower theft rates and cheaper repair costs have lower premiums. Research insurance costs for different models before making your final lease decision.
Leased cars usually require full coverage insurance, including liability, collision and comprehensive. 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. |
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.
Leasing companies usually require higher liability limits than state minimums to better protect against lawsuits and expensive property damage.
Standard Leased Car Liability Limits:
State minimums are often too low to cover serious accidents. Leasing companies want higher limits to protect their investment and you in case of a major claim.
Collision coverage is mandatory for leased cars. It pays for damage if your vehicle hits another object or vehicle.
Covers:
Deductible Rules:
The lessor is involved in repairs since it owns the vehicle. You’re responsible for your deductible.
Leasing companies also require comprehensive coverage, which protects the car from non-collision damage.
Covers:
Deductible and Limits:
Comprehensive coverage ensures the lessor is protected if the car is stolen or damaged in a way other than a crash.
Gap insurance covers the difference between your leased car's actual cash value (ACV) and what you still owe if it's totaled or stolen. Leasing companies often require it, and it is especially helpful early in the lease when depreciation is highest. You can buy it from your insurer or the dealership, but prices and coverage vary.
Leasing a car usually requires higher insurance premiums than buying because the lessor owns the car and wants comprehensive protection. These cost differences can affect your monthly budget, so compare both scenarios before deciding.
Vehicle Status | Coverage Requirements | Best For |
|---|---|---|
Leased |
| Drivers who
|
Owned |
| Drivers who
|
The lessor must be listed as "loss payee" on your policy to receive claim payments if the car is totaled.
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.
Full Coverage Insurance vs. Minimum Coverage
Full coverage costs about 98% more than minimum coverage, increasing your annual premium by around $936.
Full coverage insurance: $1,895 annual premium
Minimum coverage insurance: $959 annual premium
If you want to know how much you need to pay, use our car insurance calculator.
MoneyGeek's car insurance calculator will give you a customized estimate of your auto insurance cost. It's free to use, requires no personal information and we won't send you any spam.
Rates updated:
Sep 02, 2025
| Insurance Carrier | MoneyGeek ScoreMG Score | Average Monthly Payment | |
|---|---|---|---|
| 1 |  Capital Insurance Group | 94 /of 100 | $87 |
| 2 |  GEICO | 82 /of 100 | $109 |
| 3 | 83 /of 100 | $118 | |
| 4 | 83 /of 100 | $129 | |
| 5 |  Progressive | 79 /of 100 | $133 |
| 6 | 77 /of 100 | $151 |
Although MoneyGeek partners with some of the companies we recommend, our content is written and reviewed by an independent team of writers, editors and licensed agents. Learn more about our editorial policies and expert editorial team.
You can cancel your car insurance policy when your lease ends. However, if you plan to extend the lease, lease a new car or buy the leased car, update your policy and inform your provider.
If you extend your car lease, keep your insurance policy active and notify your insurer to make necessary adjustments. Letting your policy lapse could result in the lessor repossessing the car.
Inform your insurer if you lease a new car or switch lessors. Your costs change depending on the car, so updating your policy is essential.
If you plan to purchase your leased car, inform your insurance provider and have the lessor removed from your policy. This allows you to adjust your limits below your lessor's requirements if you need to save.
If you need an SR-22 or FR-44, which proves you have the required insurance after a serious driving violation, you can still lease a car. Your lender will ensure you carry the necessary coverage, so the SR-22 or FR-44 won’t be an issue. However, insurance rates are typically higher with these filings, meaning leasing a new car — already more expensive to insure — could further increase your premiums. — Mark Friedlander, Director, Corporate Communications, Insurance Information Institute
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.
We answer common questions to help you better understand car insurance for leased cars.
If you're used to paying for minimum coverage, you'll find insurance for a leased car more expensive. Leasing companies often require full coverage insurance and increased liability limits, which cost more than basic state minimum coverage.
Leased car insurance costs depend on your situation and provider. Full coverage for leased cars averages $900 to $1,200 annually, with the cheapest options starting around $680 for qualifying military members.
Lessors require full coverage insurance, including liability, comprehensive and collision coverage. Most also mandate higher liability limits than state minimums and can require gap insurance. However, insurance requirements can vary depending on the lessor.
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.
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.
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.
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.
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.
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.
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.
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.
Our Research Approach
We analyzed 83,056 quotes from 46 insurers across 473 ZIP codes using data from Quadrant Information Services and state insurance departments. This comprehensive scope ensures our findings reflect real-world pricing across different markets and driver situations.
Sample Driver Profile
To ensure consistent comparisons, we used a standardized profile representing typical leased car drivers:
We then adjusted this baseline by age, location, vehicle type, driving history and credit-based insurance score to provide accurate rate ranges for diverse driver situations.
Coverage Specifications
Our rates reflect full coverage policies essential for leased vehicles. The 100/300/100 liability structure means:
The $1,000 comprehensive and collision deductible represents what you'll pay before insurance covers damage to your leased vehicle. While higher deductibles reduce monthly premiums, remember that you're responsible for this amount every time you file a claim.
Why This Methodology Matters for Leased Cars
Unlike car owners who might consider liability-only coverage, leased car drivers need comprehensive and collision coverage to satisfy lease agreements. Our analysis focuses on full coverage policies because that's what lessors require, helping you compare realistic options rather than inadequate minimum coverage that won't meet your lease terms.
About Mark Fitzpatrick
Mark Fitzpatrick, a Licensed Property and Casualty Insurance Producer, is MoneyGeek's resident Personal Finance Expert. With over five years of experience analyzing the insurance market, he conducts original research and creates tailored content for all types of buyers. His insights have been featured in publications like 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!
Passionate about economics and insurance, he aims to promote transparency in financial topics and empower others to make confident money decisions.
