Cheapest Car Insurance for Leased Cars


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Key Takeaways

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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.

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Most car leasing companies require full coverage car insurance, including liability, collision and comprehensive coverages, and may require higher liability limits than the state minimum.

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You can save on leased car insurance by increasing deductibles, bundling policies and applying discounts. Shopping around is key to finding the best rates.

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What is The Cheapest Insurance for Leased Cars?

At an average of $1,164 per year, Travelers's full coverage auto insurance is the cheapest coverage for leased cars among the companies MoneyGeek surveyed. Full coverage insurance is best for leased cars since most lessors require liability, comprehensive and collision coverages.

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

Cheapest Insurance for Leased Cars by State

Car insurance costs may 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.

AlabamaAIG$68$817
AlaskaGeico$84$1,005
ArizonaTravelers$86$1,030
ArkansasFarm Bureau$86$1,032
CaliforniaGeico$90$1,085
ColoradoAmerican National$74$891
ConnecticutGeico$76$910
DelawareTravelers$74$887
District of ColumbiaChubb$108$1,300
FloridaTravelers$112$1,349
GeorgiaAuto Owners$100$1,201
HawaiiGeico$66$787
IdahoGeico$53$632
IllinoisGeico$69$830
IndianaGeico$63$755
IowaTravelers$66$789
KansasGeico$71$853
KentuckyTravelers$94$1,132
LouisianaGeico$158$1,894
MaineTravelers$54$644
MarylandGeico$84$1,002
MassachusettsPlymouth Rock Insurance$67$804
MichiganGeico$70$841
MinnesotaAuto Owners$75$897
MississippiFarm Bureau$95$1,140
MissouriAuto Owners$79$948
MontanaState Farm$80$957
NebraskaFarmers Mutual Ins Co of NE$67$802
NevadaTravelers$106$1,268
New HampshireMMG Insurance$60$718
New JerseyNJM Insurance$121$1,453
New MexicoGeico$96$1,147
New YorkNYCM Insurance$58$700
North CarolinaState Farm$56$671
North DakotaGeico$56$677
OhioAuto Owners$68$811
OklahomaProgressive$89$1,069
OregonProgressive$81$975
PennsylvaniaTravelers$68$815
Rhode IslandState Farm$85$1,025
South CarolinaAmerican National$64$764
South DakotaProgressive$52$621
TennesseeAuto Owners$77$923
TexasState Farm$95$1,135
UtahGeico$93$1,118
VermontCo-operative Insurance$50$604
VirginiaFarm Bureau$61$736
WashingtonProgressive$99$1,184
West VirginiaErie Insurance$91$1,096
WisconsinGeico$55$655
WyomingAmerican National$63$753

Best Affordable Leased Car Insurance: Buyer's Guide

In most cases, you'd need higher liability limits and full coverage to meet your car lessor's requirements. Understanding the 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

While insuring a leased car may be costly, 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.

  1. 1

    Shop around for quotes

    Comparing quotes from multiple providers can help you find the best rates. Because insurers calculate premiums differently, switching car insurance providers may save you money. Get at least three quotes and compare them based on cost, discounts, reviews and perks.

  2. 2

    Increase your deductibles

    Your collision and comprehensive deductible is the amount that you pay out of pocket after an at-fault accident before your insurance covers the rest. Higher deductibles mean lower monthly premiums. You'll pay more upfront if you file a claim, but most leasing companies cap deductibles at $1,000 anyway. If you rarely file claims, this simple switch can save you hundreds per year.

  3. 3

    Choose the right coverage limits

    Lessors often require full coverage, including comprehensive, collision and higher liability limits. While minimum liability coverage usually isn't an option, you can adjust other coverages to save money. For instance, consider dropping optional add-ons like roadside assistance or rental car reimbursement if your lessor doesn't require them.

  4. 4

    Take advantage of multi-policy discounts

    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.

  5. 5

    Enroll in safe driver programs

    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.

  6. 6

    Leverage life stage discounts

    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.

  7. 7

    Complete defensive driving courses

    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.

  8. 8

    Maintain a good credit history

    Many insurers look at 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.

  9. 9

    Time your policy purchases strategically

    Insurance rates can vary based on when you purchase coverage. Avoid buying insurance at the last minute, as you can miss out on advance purchase discounts. Additionally, consider the timing of your lease start date because some insurers offer better rates at certain times of the year.

  10. 10

    Optimize your vehicle choice

    If you haven't yet 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.

What Are the Requirements for Insurance on a Leased Car?

Leased cars usually require full coverage insurance, including liability, collision and comprehensive. Some leasing companies may 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 in case of an accident that isn't caused by collisions with other vehicles, such as theft, vandalism, natural disasters, fires and more

Collision coverage

Pays for damage to your car caused in 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. It may be required in some states in addition to minimum coverage.

Personal injury protection

Pays for your medical bills and those of your passengers if you're in an accident. It may also be required in some states.

Gap insurance

Covers the difference between the value of a car and what you owe on it.

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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 coverages pay for car damage. Some lessors may also require higher liability limits.

Liability Coverage Requirements for Leased Cars

Leasing companies usually require higher liability limits than state minimums to better protect against lawsuits and expensive property damage.

Standard Leased Car Liability Limits:

  • Bodily injury: $100,000 per person / $300,000 per accident
  • Property damage: $100,000 per accident
  • Often listed as: 100/300/100 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 Requirements

Collision coverage is mandatory for leased cars. It pays for damage if your vehicle hits another object or vehicle.

Covers:

  • Accidents with other vehicles
  • Single-car crashes (like hitting a pole or tree)
  • Rollovers
  • Pothole damage

Deductible Rules:

  • Typically capped at $500–$1,000
  • Some lessors may require a specific amount
  • Lower deductibles mean higher premiums

The leasing company is involved in repairs since it owns the vehicle. You’re responsible for your deductible.

Comprehensive Coverage Requirements

Leasing companies also require comprehensive coverage, which protects the car from non-collision damage.

Covers:

  • Theft or vandalism
  • Weather events (hail, floods, falling objects)
  • Fires
  • Animal collisions (e.g., hitting a deer)
  • Glass damage (windshields and windows)

Deductible and Limits:

  • Deductibles typically capped at $500–$1,000
  • May include a separate deductible for glass
  • Coverage usually equals the car’s actual cash value

Comprehensive coverage ensures the lessor is protected if the car is stolen or damaged by something other than a crash.

Do You Need Gap Insurance When Leasing a Car?

Gap insurance covers the difference between your leased actual cash value (ACV) and what you still owe if it’s totaled or stolen. It’s often required by lessors and 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 may vary.

Insurance for Leased Car vs. Bought Car

Leasing a car usually requires higher insurance premiums than buying because the leasing company 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

  • Higher liability limits (typically 100/300/100)
  • Mandatory comprehensive/collision
  • Gap insurance often required

Drivers who

  • want newer cars
  • drive under 12,000 miles annually
  • prefer predictable costs

Owned

  • State minimum liability only
  • Comprehensive/collision optional
  • No gap insurance needed

Drivers who

  • drive high mileage
  • want maximum coverage control
  • plan long-term ownership
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MONEYGEEK EXPERT TIP

The lessor must be listed as "loss payee" on your policy to receive claim payments if the car is totaled.

Is It More Expensive to Insure a Leased Car?

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

Full Coverage Insurance vs. Minimum Coverage

 

Full coverage costs about 98% more than minimum coverage, increasing your annual premium by around $936.

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Full coverage insurance: $1,895 annual premium

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Minimum coverage insurance: $959 annual premium

If you want to know how much you need to pay, use our car insurance calculator.

Compare Car Insurance Quotes

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.

$192
High
$139
Average
$87
Low

Rates updated:

Jul 11, 2025

Insurance Carrier
MoneyGeek Score
Average Monthly
Payment
1
Capital Insurance Group

Capital Insurance Group

94
/of 100
$87
2
GEICO

GEICO

82
/of 100
$109
3
83
/of 100
$118
4
83
/of 100
$129
5
79
/of 100
$133
6
77
/of 100
$151
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What Happens to Your Car Insurance When Your Lease Is Done?

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.

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    If extending your lease contract

    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.

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    If leasing a new car

    If you lease a new car or switch lessors, inform your insurer. Your costs may change depending on the car, so updating your policy is essential.

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    If you plan on buying your leased car

    If you plan to purchase your leased car, inform your insurance provider and have the lessor removed from your policy. This will allow you to adjust your limits below your lessor's requirements if you need to save.

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HOW DOES SR-22 INSURANCE WORK WITH A LEASED CAR?

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

Cheapest Auto Insurance for Leased Cars: Bottom Line

This page reviewed the most affordable insurance options for leased cars. GEICO offers the cheapest full coverage policy for leased car drivers at $1,223 per year, followed by Travelers at $1,298. 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 coverages 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.

Compare Auto Insurance Rates

Ensure you're getting the best rate for your auto insurance. Compare quotes from the top insurance companies.

Why do we need ZIP code?

Cheap Car Insurance for Leased Cars: FAQ

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

Is insurance cheaper for leased cars?

How much is insurance for a leased car?

What are the insurance requirements for a leased car?

Do I need full coverage on a leased car?

Can I use minimum coverage on a leased car?

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

Do I need gap insurance when leasing a car?

What happens to my insurance when my lease ends?

Can I choose my own deductible on a leased car?

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

Best Cheap Car Insurance for Leased Cars: Our Methodology

Leasing a car means you're driving someone else's valuable asset, and your insurance needs are different from car owners. Lenders require specific coverage levels, and you'll face financial gaps that standard policies might not 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:

  • 40-year-old man with a clean driving record
  • Toyota Camry LE driven 12,000 miles annually
  • 100/300/100 liability limits with comprehensive and collision coverage
  • $1,000 deductible for physical damage coverage

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:

  • $100,000 bodily injury coverage per person
  • $300,000 bodily injury coverage per accident
  • $100,000 property damage coverage per accident

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 lenders require, helping you compare realistic options rather than inadequate minimum coverage that won't meet your lease terms.

Cheap Auto Insurance for Leased Cars: Related Pages

About Mark Fitzpatrick


Mark Fitzpatrick headshot

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.


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