Cheap Car Insurance for Leased Cars in 2024 (Big Savings With These 10 Companies!)
USAA, Geico, and AAA offer the best rates for cheap car insurance for leased cars, starting at just $22 monthly. These providers excel in affordability and comprehensive coverage options tailored for leased vehicles, ensuring optimal financial protection and value for lessees seeking reliable insurance solutions.
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Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
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UPDATED: Sep 19, 2024
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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 partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above 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 auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Sep 19, 2024
It’s all about you. We want to help you make the right 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 partnerships don’t influence our content. Our opinions are our own. To compare quotes from top car companies please enter your ZIP code above to use the free quote tool. The more quotes you compare, the more chances to save.
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The top providers of cheap car insurance for leased cars are USAA, Geico, and AAA, known for their competitive rates and comprehensive coverage.
When leasing a vehicle, it’s crucial to have insurance that not only meets leasing company requirements but also offers financial protection without breaking the bank. Learn more in our “Compare Monthly Car Insurance: Rates, Discounts, & Requirements.”
Our Top 10 Company Picks: Cheap Car Insurance for Leased Cars
Company Rank Monthly Rates A.M. Best Best For Jump to Pros/Cons
#1 $22 A++ Military Benefits USAA
#2 $30 A++ Competitive Rates Geico
#3 $32 A Roadside Assistance AAA
#4 $33 B Personalized Service State Farm
#5 $37 A++ Customizable Coverage Travelers
#6 $39 A+ Flexible Coverage Progressive
#7 $44 A+ Widespread Availability Nationwide
#8 $53 A Specialized Coverage Farmers
#9 $61 A+ Safe-Driving Discounts Allstate
#10 $68 A Customizable Coverage Liberty Mutual
These companies excel by offering tailored policies that balance cost with coverage needs. Whether you’re looking for liability, collision, or comprehensive plans, these insurers provide options that ensure lessees are well-protected at an affordable price.
Need the cheapest car insurance possible? Enter your ZIP code above into our free comparison tool to find the most affordable rates for your vehicle.
- USAA is the top pick for cheap car insurance for leased cars
- Leased vehicles require specific coverage to meet leasing company terms
- Optimal insurance for leased cars balances affordability with coverage needs
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#1 – USAA: Top Overall Pick
Pros
- Exclusive Military Discounts: USAA offers significant discounts tailored for military members and their families.
- Exceptional Customer Service: Known for its strong customer support, specifically tailored to meet the needs of military personnel.
- High Financial Stability: USAA consistently receives high ratings for financial strength, ensuring reliability. See more details on our “USAA Car Insurance Review.”
Cons
- Limited Eligibility: USAA services are available exclusively to military members, veterans, and their families.
- Restricted Policy Options: Fewer options for non-military individuals limit accessibility.
#2 – Geico: Best for Competitive Rates
Pros
- Affordable Policies: Geico is known for offering some of the lowest insurance rates. Read up on the “Geico Car Insurance Review” for more information.
- Extensive Discounts: Offers a variety of discounts that can substantially lower premiums.
- Fast Claims Processing: Geico has a reputation for quick and efficient claims resolution.
Cons
- Customer Service Variability: Customer service quality can vary significantly depending on the region and agent.
- Basic Policy Offerings: While affordable, their policies can sometimes lack options for more comprehensive coverage needs.
#3 – AAA: Best for Roadside Assistance
Pros
- Superior Roadside Assistance: AAA is renowned for its comprehensive roadside assistance programs.
- Member Benefits: Members receive numerous benefits including discounts on travel, lodging, and more.
- Variety of Insurance Products: Offers a range of insurance types beyond just automotive. Check out insurance savings in our complete AAA car insurance review.
Cons
- Membership Required: You must be a AAA member to access insurance services, which involves an annual fee.
- Higher Premiums: Monthly rates can be higher compared to other insurers, especially for non-members.
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#4 – State Farm: Best for Personalized Service
Pros
- Bundling Policies: State Farm offers significant discounts for bundling multiple insurance policies.
- High Low-Mileage Discount: Provides a substantial discount for low-mileage usage.
- Wide Coverage: Offers various coverage options tailored for different needs. Discover more about offerings in our State Farm car insurance review.
Cons
- Limited Multi-Policy Discount: The multi-policy discount is not as high compared to some competitors.
- Premium Costs: Despite discounts, premiums might still be relatively higher for certain coverage levels.
#5 – Travelers: Best for Customizable Coverage
Pros
- Flexible Policy Options: Travelers offers highly customizable insurance policies to suit diverse needs.
- High Claims Satisfaction: Known for customer satisfaction in the claims process. Access comprehensive insights into our Travelers car insurance review.
- Risk Management Services: Provides extensive risk management services to help clients reduce potential losses.
Cons
- Complex Policy Management: Policies can be complex and may require more active management.
- Pricing Variability: Premiums can vary widely depending on individual risk factors and coverage choices.
#6 – Progressive: Best for Flexible Coverage
Pros
- Name Your Price Tool: Progressive offers a unique tool that helps customers find policies that fit their budget.
- Strong Online Presence: Easy online management and quote comparison tools. Delve into our evaluation of Progressive car insurance review.
- Wide Acceptance: Offers insurance to a broader range of drivers, including high-risk.
Cons
- Inconsistent Agent Experience: Customer experiences can vary widely depending on the agent or representative.
- Higher Rates for High-Risk: High-risk drivers may face significantly higher rates.
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#7 – Nationwide: Best for Widespread Availability
Pros
- Extensive Network: Nationwide offers insurance products across a broad geographic area.
- Multiple Policy Discounts: Significant discounts for customers who bundle different types of policies.
- Innovative Mobile App: Strong digital tools for policy management and claims. Unlock details in our Nationwide car insurance discounts.
Cons
- Varied Customer Service: The level of customer service can vary greatly depending on local agents and offices.
- Rate Fluctuations: Premiums can fluctuate more noticeably than some competitors.
#8 – Farmers: Best for Specialized Coverage
Pros
- Tailored Insurance Options: Offers specialized insurance policies for unique or uncommon needs.
- Dedicated Agents: Known for having knowledgeable and dedicated insurance agents. Discover insights in our Farmers car insurance review.
- Educational Resources: Provides extensive resources to help customers understand their coverage options.
Cons
- Higher Cost: Generally, Farmers’ insurance policies come at a higher cost compared to industry averages.
- Limited Availability: Not all specialized policies are available in every state.
#9 – Allstate: Best for Safe-Driving Discount
Pros
- Drivewise Program: Offers discounts for safe driving through its Drivewise telematics program.
- Multiple Coverage Options: Provides a wide range of coverage options, including custom parts coverage.
- Strong Local Agents: Known for having supportive and accessible local agents. If you want to learn more about the company, head to our Allstate car insurance review.
Cons
- Higher Premiums: Allstate’s rates can be higher, particularly for clients without discounts.
- Claims Process Issues: Some customers report less satisfaction with the claims process.
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#10 – Liberty Mutual: Best for Customizable Coverage
Pros
- Customization Options: Allows customers to tailor their policies with unique coverage add-ons. Learn more in our Liberty Mutual car insurance review.
- Accident Forgiveness: Offers accident forgiveness policies, preventing premium increases after the first accident.
- Extensive Discounts: Provides a wide array of discounts, including for environmentally friendly vehicles.
Cons
- Variable Customer Service: Customer service quality can vary, impacting customer satisfaction.
- Higher Premium Rates: Generally has higher rates compared to some competitors, especially for basic coverage.
Comparative Monthly Insurance Rates for Leased Vehicles
When choosing car insurance for a leased vehicle, understanding the cost differences between minimum and full coverage options is crucial. The table below provides a clear comparison of monthly rates from various insurers, highlighting how premiums vary significantly depending on the level of coverage.
Car Insurance Monthly Rates for Leased Cars by Coverage Level & Provider
Insurance Company Minimum Coverage Full Coverage
AAA $32 $86
Allstate $61 $160
Farmers $53 $139
Geico $30 $80
Liberty Mutual $68 $174
Nationwide $44 $115
Progressive $39 $105
State Farm $33 $86
Travelers $37 $99
USAA $22 $59
AAA, for instance, offers minimum coverage at $32 and full coverage at $86, illustrating a common trend where full coverage costs are substantially higher than minimum coverage.
Similar patterns are seen with other companies: Allstate’s rates jump from $61 for minimum to $160 for full coverage, while USAA presents the most affordable option, with rates increasing from a low $22 for minimum to $59 for full coverage.
This variability underscores the importance of considering both your budget and the extent of coverage needed when insuring a leased car. Discover insights in our “How do you get car insurance fast?“
What Insurance Do I Need for a Leased Car
Whether you are leasing a car or own it, you must ensure your vehicle is covered before driving it. At a minimum, you need to secure coverage that meets your state’s minimum insurance requirements, especially when seeking the best car insurance for leasing.
Most states require both bodily injury liability and property damage liability coverage, though some states have additional requirements. If you are uncertain as to how much insurance you are required to have on your vehicle, you can check with your state’s department of motor vehicles (DMV). Discover more about offerings in our “Compare Liability Car Insurance: Rates, Discounts, & Requirements.”
With a starting rate of only $22 for minimum coverage, USAA provides unparalleled financial relief for military families.
Tracey L. Wells Licensed Insurance Agent & Agency Owner
When it involves leased car insurance requirements, you may need additional coverage based on lessor stipulations. Many leasing companies necessitate one or more of the following insurance coverages:
- Collision: pays for damages to your leased car in the event of an accident.
- Comprehensive: covers damages to your leased car in the event of adverse weather conditions, theft, falling debris, and more.
- Gap: pays the difference in what your car is worth and the loan you have on your vehicle if it is totaled.
- Uninsured/Underinsured: pays for coverage to your vehicle if someone else is at fault but does not carry the proper insurance.
You may choose to add extra coverage options for your leased vehicle if desired, but it is rare for a leasing company to demand more coverage than what is mentioned above. If you are unsure about the type and amount of coverage required, consult with your leasing company to find the best car insurance for lease.
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Is Insurance More Expensive for a Leased Car
Car insurance for leased cars is not always more expensive than it is for a car that you own. The cost of insurance for a leased car actually depends on the type of vehicle you own and the kinds and amounts of car insurance coverage that you’re seeking.
The table below displays the average annual rates for full coverage car insurance — which includes liability, comprehensive, and collision coverage — in each U.S. state.
Full Coverage Car Insurance Monthly Rates by State
| State | Rates |
|---|---|
| Alabama | $68 |
| Alaska | $87 |
| Arizona | $78 |
| Arkansas | $72 |
| California | $77 |
| Colorado | $75 |
| Connecticut | $92 |
| Delaware | $99 |
| Florida | $101 |
| Georgia | $80 |
| Hawaii | $71 |
| Idaho | $55 |
| Illinois | $69 |
| Indiana | $60 |
| Iowa | $56 |
| Kansas | $68 |
| Kentucky | $75 |
| Louisiana | $111 |
| Maine | $57 |
| Maryland | $90 |
| Massachusetts | $90 |
| Michigan | $104 |
| Minnesota | $69 |
| Mississippi | $78 |
| Missouri | $69 |
| Montana | $70 |
| Nebraska | $65 |
| Nevada | $88 |
| New Hampshire | $65 |
| New Jersey | $113 |
| New Mexico | $75 |
| New York | $108 |
| North Carolina | $62 |
| North Dakota | $61 |
| Ohio | $62 |
| Oklahoma | $78 |
| Oregon | $71 |
| Pennsylvania | $78 |
| Rhode Island | $102 |
| South Carolina | $76 |
| South Dakota | $60 |
| Tennessee | $69 |
| Texas | $85 |
| Utah | $69 |
| Vermont | $61 |
| Virginia | $67 |
| Washington | $77 |
| Washington, D.C. | $109 |
| West Virginia | $85 |
| Wisconsin | $58 |
| Wyoming | $68 |
| U.S. Average | $80 |
As you can see, rates vary significantly based on where you live. There are several additional factors that affect the rates that you’ll ultimately end up paying for auto insurance, so it’s important to shop around to find the best options for cheap car insurance in your area.
Can I Get Insurance Through the Leasing Company
You likely won’t be able to obtain car insurance through the leasing company, although some do provide GAP coverage for leased vehicles. Since there are few car leasing options that include insurance, you’ll need to explore other sources for car insurance for lease cars.
In most situations, you should shop around for free car insurance quotes online to find the appropriate insurance for your leased vehicle. Consult with family and friends to learn which companies they use for car insurance and ask detailed questions. It’s crucial to compare multiple quotes from different companies to ensure you’re not overpaying for cheap car insurance for leased vehicles.
If you believe that you’ve found one or two companies you’re interested in purchasing a policy with, be sure to contact the companies and request direct quotes. You can also inquire as to whether or not there are any car insurance discounts for which you would be eligible.
Can I Get Discounts on Leased Car Insurance
You may qualify for one or more discounts when seeking insurance for your leased car. This will likely vary from one company to the next, but there is no harm in asking whether it’s possible to save some money on your monthly insurance rates by applying for a discount.
Some of the most common car insurance discounts include:
- Multi-Policy
- Multi-Car
- Vehicle Safety
- New Car
- Anti-theft Devices
- Good Driver
- Defensive Driver
- Good Student
- Paid-In-Full
If you believe that you qualify for any of the discounts listed above, it can be advantageous to speak with an insurance representative to ask. You may be working with a company that offers additional discounts on coverage, so you can always inquire as to whether there are discounts that you are unaware of. Access comprehensive insights into our “Occupation Car Insurance Discounts.”
Ensuring your leased vehicle has proper insurance coverage is crucial to avoid out-of-pocket expenses in case of any mishaps. When searching for the cheapest car insurance for leased cars, be sure to thoroughly evaluate your options and don’t hesitate to ask questions if any details are unclear.
Ready to find cheaper car insurance coverage? Enter your ZIP code below to begin.
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Frequently Asked Questions
Is car insurance mandatory for leased cars?
Yes, car insurance is mandatory for leased cars. When you lease a car, the leasing company typically requires you to maintain comprehensive and collision coverage. These coverages help protect the leasing company’s financial interest in the vehicle. In addition to these coverages, you may also need to carry liability insurance as required by your state’s minimum coverage requirements.
For additional details, explore our comprehensive resource titled “Compare Collision Car Insurance: Rates, Discounts, & Requirements.”
What types of car insurance coverage should I consider for a leased car?
For a leased car, you will typically need to carry the following types of coverage:
- Liability Coverage: This covers bodily injury and property damage liability if you’re at fault in an accident. It helps pay for the other party’s medical expenses and vehicle repairs.
- Comprehensive Coverage: This coverage protects against non-collision incidents, such as theft, vandalism, fire, or weather damage.
- Collision Coverage: This coverage pays for repairs or replacement of your leased car if it’s damaged in a collision with another vehicle or object.
- Gap Insurance: Gap insurance covers the “gap” between the actual cash value of your leased car and the amount you owe on your lease in case of a total loss. It can be helpful in paying off the remaining lease balance if your car is deemed a total loss.
Can I use my existing car insurance for a leased car?
It depends on your existing car insurance policy. Some insurance companies may require you to update your policy or purchase additional coverage for a leased car. It’s best to contact your insurance provider and inform them that you’re leasing a car to determine if any changes or additional coverage is necessary.
Are there any specific insurance requirements from the leasing company?
Yes, the leasing company may have specific insurance requirements that you must meet. They will typically require you to provide proof of insurance that meets their minimum coverage limits. They may also require you to add them as a loss payee or additional insured on the policy. It’s important to review your lease agreement and communicate with the leasing company to understand their specific insurance requirements.
How can I compare car insurance quotes for leased cars?
To compare car insurance quotes for leased cars, you can:
- Contact Your Provider: Reach out to your existing insurance company and inform them about your intention to lease a car. They can provide you with updated quotes and coverage options.
- Shop Around: Obtain quotes from multiple insurance providers to compare coverage options and prices. You can do this by contacting insurance companies directly or using online comparison tools.
- Consider Insurance Providers Recommended by the Leasing Company: Some leasing companies have preferred insurance providers or partnerships that may offer specialized coverage options or discounts for leased cars. Inquire with the leasing company for their recommendations.
To find out more, explore our guide titled “How to Purchase the Right Car Insurance Quote Online.”
What are the leased vehicle insurance requirements?
Leased vehicle insurance requirements typically include both comprehensive and collision coverage to protect the financial interest of the leasing company.
What does comprehensive insurance for leasing cover?
Comprehensive insurance for leasing covers damages to your vehicle from non-collision incidents, such as theft, vandalism, and natural disasters.
Where can I find cheap car insurance for leased cars?
Cheap car insurance for leased cars can be found by comparing quotes from multiple providers who offer competitive rates and discounts for leasing.
How do I get cheap auto insurance for leased cars?
To get cheap auto insurance for leased cars, look for insurers like USAA or Geico that offer lower rates for leased vehicles and discounts for safe driving and bundling.
To learn more, explore our comprehensive resource on “AAA Car Insurance Discounts.”
How do I perform a lease car insurance comparison?
To perform a lease car insurance comparison, gather quotes from several insurance companies, and compare their coverage options and monthly premiums specifically for leased vehicles.
Where can I get lease car insurance quotes?
Lease car insurance quotes can be obtained online from major insurers or through an insurance comparison tool tailored to leased vehicle coverage.
Get the right car insurance at the best price — enter your ZIP code below to shop for coverage from the top insurers.
Which insurance is considered best for leased vehicles?
For leased vehicles, the best insurance is often provided by companies that offer flexible coverage options and competitive pricing, such as USAA.
How do I find the best insurance for leased cars?
Finding the best insurance for leased cars involves comparing policies from top-rated insurers that offer specific benefits and discounts for leased vehicles.
Learn more by reading our guide titled “Best Eco-Friendly Car Insurance.
What should I look for in the best car insurance for lease?
Look for insurance that offers not only competitive rates but also comprehensive coverage that meets all lease agreement requirements.
How is car insurance for lease cars different?
Car insurance for lease cars typically requires higher limits and additional coverage like gap insurance to cover the full value of the vehicle in case of a total loss.
What is lease protection insurance?
First Class Lease Protection (FCLP) offers coverage for various chargeable items at the end of a lease, including minor dents, scratches, and other damages that exceed normal wear and tear.
Does leasing a car affect your credit?
Ensure that you consistently make your lease payments on time. Like finance payments, lease payments are reported to the major credit bureaus. Since timely bill payments significantly impact your credit score, maintaining regular lease payments can positively influence it.
Access comprehensive insights into our guide titled “Credit Card Car Insurance Discounts.”
What happens at the end of a car lease?
When you lease a car, you’re essentially paying for the right to use the vehicle for a set period of time. At the conclusion of the lease agreement, you must either return the car to the leasing company or you have the option to buy it at its residual value.
Is it smart to lease a car?
Leasing a car offers an attractive route to driving a new vehicle without the large payments associated with car loans. However, over time, purchasing a car might be more economically advantageous than leasing. Analyzing the financial details of each choice can guide you in deciding which is more suitable for your situation.
Why leasing is better than financing?
Leasing typically offers lower monthly payments compared to buying a car on finance. When you lease a vehicle, you’re not covering the full cost of the car; instead, you pay for the depreciation—the loss in value—of the vehicle over the duration of the lease.
Explore your car insurance options by entering your ZIP code below and finding which companies have the lowest rates.
Free Car Insurance Comparison
Enter your ZIP code below to view companies that have cheap car insurance rates.
Secured with SHA-256 Encryption
Jeffrey Manola
Licensed Insurance Agent
Jeffrey Manola is an experienced insurance agent who founded TopQuoteLifeInsurance.com and NoMedicalExamQuotes.com. His mission when creating these sites was to provide online consumers searching for insurance with the most affordable rates available. Not only does he strive to provide consumers with the best prices for insurance coverage, but he also wants those on the market for insurance to ...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
