Cheap Car Insurance for Leased Cars
Best cheap leased car insurance
Cheapest car insurance for leased cars
Travelers has the cheapest car insurance leased cars at $135 a month for full coverage
Cheap leased car insurance
| Company | Monthly rate | LendingTree score | |
|---|---|---|---|
 | Travelers | $135 |  |
 | State Farm | $144 | |
 | American Family | $146 |  |
 | Progressive | $160 | |
 | Geico | $173 |  |
 | Nationwide | $190 |  |
 | AAA | $193 |  |
 | Farm Bureau | $195 | |
 | Allstate | $248 | |
 | Farmers | $258 | |
 | USAA* | $125 | |
In most states, Travelers and USAA also offer accident forgiveness
Cheapest lease car insurance by state
Travelers has the cheapest lease car insurance in 12 states, including Illinois and Virginia. State Farm is the cheapest company in a dozen others, including Arizona and Texas. In some states, smaller companies like Erie or the Farm Bureau are cheapest for leased vehicles.
Cheap insurance for leased cars
| State | Cheapest company | Monthly rate |
|---|---|---|
| Alabama | Travelers | $103 |
| Alaska | Geico | $116 |
| Arizona | State Farm | $144 |
| Arkansas | State Farm | $125 |
| California | Geico | $127 |
| Colorado | Geico | $182 |
| Connecticut | Travelers | $112 |
| Delaware | Farmers | $147 |
| Florida | State Farm | $158 |
| Georgia | Farm Bureau | $119 |
| Hawaii | Geico | $69 |
| Idaho | State Farm | $61 |
| Illinois | Travelers | $93 |
| Indiana | Travelers | $97 |
| Iowa | Progressive | $89 |
| Kansas | Travelers | $124 |
| Kentucky | Travelers | $131 |
| Louisiana | Allstate | $212 |
| Maine | Travelers | $66 |
| Maryland | State Farm | $129 |
| Massachusetts | Geico | $113 |
| Michigan | Progressive | $134 |
| Minnesota | Travelers | $106 |
| Mississippi | State Farm | $107 |
| Missouri | Travelers | $115 |
| Montana | State Farm | $95 |
| Nebraska | Farmers Mutual of Nebraska | $99 |
| Nevada | Travelers | $161 |
| New Hampshire | Safety | $86 |
| New Jersey | Geico | $132 |
| New Mexico | State Farm | $133 |
| New York | Progressive | $104 |
| North Carolina | Progressive | $70 |
| North Dakota | State Farm | $100 |
| Ohio | Geico | $97 |
| Oklahoma | Progressive | $99 |
| Oregon | State Farm | $88 |
| Pennsylvania | Erie | $120 |
| Rhode Island | Progressive | $163 |
| South Carolina | Auto-Owners | $128 |
| South Dakota | Farmers Mutual of Nebraska | $91 |
| Tennessee | Travelers | $107 |
| Texas | State Farm | $101 |
| Utah | Progressive | $142 |
| Vermont | State Farm | $65 |
| Virginia | Travelers | $86 |
| Washington | Mutual of Enumclaw | $107 |
| Washington, D.C. | Geico | $179 |
| West Virginia | Westfield | $116 |
| Wisconsin | American Family | $112 |
| Wyoming | American National | $65 |
Each company’s rates differ by customer. This makes it good to compare car insurance quotes from a few companies to find the cheapest rate.
How much car insurance do I need for a leased vehicle?
You usually need full coverage car insurance for a leased vehicle, along with some form of gap insurance.
Full coverage includes the minimum coverages
- Collision covers damage to your vehicle from a collision with another vehicle or object.
- Comprehensive covers your vehicle for theft and damage from non-collision causes like vandalism, fire and falling objects.
For state-required coverages like liability, a leasing company may make you get higher coverage limits than your state requires. For example, many states require bodily injury limits of $25,000 per person and $50,000 per accident. Leasing companies can require limits of $100,000 and $300,000, or more.
Gap insurance protects you if your leased vehicle gets totaled while it’s worth less than you owe for it. Most vehicle leases include gap insurance. If it’s not already on your lease, you can often add gap protection to your car insurance.
Why would I need gap insurance?
Gap insurance can protect you from having to cover a potential insurance shortfall out of your own pocket.
Full coverage only covers your car at its value after age and wear. Unfortunately, a car can lose its value fast, especially when it’s new. If your car is totaled, your insurance check might not cover the entire amount you still owe for your lease. Gap insurance covers this shortfall.
Several car insurance companies offer gap or a similar coverage called loan-lease protection. It usually costs about $10 a month.
Companies with gap insurance include:
- American Family
- Farmers
- Nationwide
- Progressive
- Travelers
Geico and State Farm are among the companies that do not have it.
How can I get cheap car insurance for a leased car?
Shopping around, using discounts and raising your deductibles can help you get cheap car insurance for a leased car.
The benefits of shopping around
Each company treats the factors that impact your car insurance rate a little differently. Some raise your rate more after a ticket or accident than others. Some give you a better rate for having good credit.
Getting car insurance quotes from a few companies is a good way to find the cheapest rate for your situation.
Best discounts for leased vehicles
Car insurance discounts also help make the insurance for your leased car more affordable. You usually get the biggest discounts by bundling your car insurance with a home or renters policy.
Other discounts to look for when you shop include:
- Usage based insurance: Most companies give you a discount for driving safely with their usage-based insurance (UBI) app. These apps monitor your diving. You usually get a discount for signing up. If you drive safely enough, you get a discount each time you renew your policy.
- Affiliation discounts: Geico gives discounts to federal employees and members of a variety of professional and alumni groups. Other companies have discounts for certain occupational or educational backgrounds.
- Military discounts: Geico and Liberty Mutual are among the companies with military discounts. These are available to active duty and retired military service members, including reservists. Farmers offers a military discount to these groups and honorably discharged service members.
- Safety features: Most companies have discounts for cars with airbags and antilock brakes. Advanced safety systems like forward collision warning can help you save more. Let insurance companies know about your vehicle’s safety systems when you contact them for quotes.
- Defensive driving classes: State Farm, Geico and many others give you a discount for completing a defensive driving course. You often have to be at least 55 years old to qualify, but the age restrictions differ by company and state.
Most companies apply discounts to your quotes, based on information you provide. It’s still good to ask about them with your quotes. This helps you make sure none are overlooked.
Why raise my deductibles?
Raising your collision and comprehensive deductibles is an easy way to save on car insurance. For example, raising them from $500 to $1,000 can reduce your rate by more than $25 a month, or $300 a year.
Since deductibles come out of your own pocket, you don’t want them to be too high. Consider the highest amount you’d be able to afford if you got into an accident.
Is car insurance more expensive for a leased car?
The cost of insuring a particular vehicle is usually the same whether you lease, finance or own it.
However, there are factors that can make car insurance more expensive for a leased vehicle:
- Leasing companies often require higher liability limits than most states require. They also require collision and comprehensive. More coverage usually means a higher rate.
- Most people lease for newer cars, which tend to cost more to insure than older ones. Your insurance rate usually goes up when you replace an older car with a new one, no matter how you pay for it.
How we obtained car insurance rates for leased cars
LendingTree uses insurance rate data from Quadrant Information Services using publicly sourced insurance company filings. Rates are based on an analysis of hundreds of thousands of car insurance quotes for a typical driver. Prices are shown for comparative purposes only. Your own rates may be different.
Unless noted otherwise, quotes are for a full-coverage policy for a 30-year-old man with good credit and a clean driving record who drives a 2018 Honda CR-V EX.
Coverage limits
Full-coverage policies include collision, comprehensive and liability coverage:
- Bodily injury liability: $50,000 per person, $100,000 per accident
- Property damage liability: $50,000
- Uninsured / underinsured motorist bodily injury: $50,000 per person and $100,000 per accident
- Personal injury protection: minimum limits, where required by law
- Collision: $500 deductible
- Comprehensive: $500 deductible
How we evaluated car insurance companies
Our team of insurance experts rated insurance companies based on several categories. These categories include average rates, discounts, coverage options, third-party customer service ratings and app/website experience. We weighted these categories based on what customers value in an insurance company.
For third-party customer service ratings, we included Complaint Index scores from the National Association of Insurance Commissioners (NAIC) and financial strength ratings from A.M. Best. NAIC Complaint Index scores are used to determine how satisfied customers are with their claims, while financial strength ratings from A.M. Best reflect the ability to pay out claims.
*USAA is only available to current and former members of the military as well as certain family members.