120+ more*Quotes generated for Insurify users within the last 10 days. Last updated on May 21, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on May 21, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
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Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
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30+ years in financial services
Clinical Professor of Finance, University of San Diego
Updated
On average, the cost of full coverage is $183 per month, compared to $97 per month for liability-only coverage, whether you own or lease a car.
Before buying insurance, confirm your leasing company’s required liability limits and deductible caps.
Some leasing companies may require you to carry gap insurance.
Leased car insurance is the auto insurance coverage that dealerships or leasing companies require you to carry when you lease a vehicle. Unlike owning a car outright, leasing a vehicle means the leasing company holds the vehicle’s title and acts as the lienholder.[1]
Because the leasing company has a financial interest in the car, it sets its own insurance requirements on top of what the state mandates. This means state-minimum liability coverage is rarely enough.
Most leasing companies require full-coverage insurance for leased cars, which typically includes liability, comprehensive, and collision coverage. Leasing companies may also require higher liability limits than your state minimum and, in some cases, gap insurance.[2]
These requirements are designed to protect the leasing company’s investment in the vehicle throughout the lease term.
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Leased car insurance requirements vary by leasing company and state, so check your lease agreement carefully. Most leasing companies require coverage well beyond the state-minimum liability limits.
At a minimum, expect to carry liability, comprehensive, and collision coverage. Some leasing companies also require gap insurance to protect against a total loss. Leasing companies often cap deductibles — typically $1,000 for both comprehensive and collision insurance.
State-minimum liability coverage is not sufficient for a lease. Leasing companies typically require higher liability limits, such as $100,000 per person and $300,000 per accident for bodily injury, along with $50,000 or more in property damage liability.
Coverage Type  | Required for Lease? | Typical Limits |
|---|---|---|
| Bodily injury liability | Yes | $100,000 per person / $300,000 per accident |
| Property damage liability | Yes | $50,000 per accident |
| Collision | Yes | Deductible often capped at $1,000 |
| Comprehensive | Yes | Deductible often capped at $1,000 |
| Gap insurance | Yes | Covers gap between vehicle value and remaining lease balance |
Liability insurance covers injuries to others and property damage you cause in an accident. It doesn’t cover damage to your own vehicle.[3]
While liability insurance is required for all drivers, leasing companies typically require higher liability limits than your state minimum. A common requirement is $100,000 per person and $300,000 per accident in bodily injury liability, plus $50,000 in property damage liability.
These higher limits help protect both you and the leasing company from significant financial losses after a serious accident.
Collision coverage pays to repair your leased car after an accident, regardless of fault. Comprehensive coverage protects the vehicle against theft and vandalism, as well as non-collision events such as fire, hail, and animal strikes.
Leasing companies require both comprehensive and collision coverage because they have a financial interest in the vehicle. Without them, the leasing company would bear the cost if the car were damaged or destroyed.
To limit your potential out-of-pocket costs, leasing companies often cap deductibles for comprehensive and collision coverage, commonly at $1,000.
Leasing companies require you to have full-coverage insurance, which costs more than the liability-only coverage that drivers who own their cars outright can choose.
People with a clean driving record pay an average of $183 per month for full coverage on a leased car, according to Insurify data. In comparison, liability-only coverage averages $97 per month — a difference of $86 per month.
Driver Profile | Full Coverage (Leased) | Liability Only (Owned) | Difference |
|---|---|---|---|
| Clean driving record | $183 | $97 | $86 |
| Drivers with good credit | $174 | $92 | $82 |
| Drivers with a speeding ticket | $236 | $125 | $111 |
| Drivers with an at-fault accident | $245 | $130 | $115 |
| Drivers with a DUI | $265 | $140 | $125 |
The higher cost of insuring a leased car comes down to three main factors:
Leasing companies require full-coverage insurance for leased cars, meaning you must carry both comprehensive and collision coverage in addition to liability. Drivers who own their vehicles outright can opt for state-minimum liability, which is far cheaper but doesn’t protect the car.
Leasing companies often require higher liability limits than the required state minimums. Higher limits mean higher premiums.
Leasing companies may require gap insurance, which adds another line item to your insurance policy cost. Gap insurance for leased cars protects the leasing company if you total your car and the insurance payout falls short of what you still owe on the lease.
Though you may need to buy more insurance coverage with a leased vehicle, you can still save on car insurance. Here are some of the best car insurance companies for drivers who lease their cars.
| User Reviews | 4.9 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.1 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $51/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $103/mo |
USAA's score | Industry average | |
|---|---|---|
| Coverage options | 4.9 | 3.2 |
| Customer service | 4.9 | 3.6 |
| Discounts | 4.9 | 2.9 |
| Policy transparency | 4.9 | 3.1 |
| Value | 4.9 | 2.9 |
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
USAA provides the lowest car insurance rates for leased cars. The company also consistently earns the highest scores for its customer service and rewards policyholders who have a history of good driving. USAA exclusively serves members of the military and their immediate families, so you’ll need to fit this criteria to buy a USAA policy.
Budget-friendly rates
Several available discounts
Some of the highest J.D. Power customer and claims satisfaction ratings
Available only to veterans, active-duty military members, and their family members
Doesn’t offer car replacement assistance on leased cars
Limited customer service hours
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.2 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $80/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $148/mo |
GEICO's score | Industry average | |
|---|---|---|
| Coverage options | 4.0 | 3.2 |
| Customer service | 4.1 | 3.6 |
| Discounts | 3.9 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.8 | 2.9 |
Customers appreciate the reliability and customer service but find the rates to be high and increase frequently, even without claims or accidents. The app has improved, but some find the claims process lacking.
GEICO provides some of the lowest rates for leased cars and offers more discounts than nearly any other insurer. For example, seniors may qualify for a defensive driving discount or a five-year good driving discount. If you’re older than 50, you can apply for guaranteed policy renewal, ensuring the company can’t decline to cover you as you age.
Discounts for seniors
Good rates for drivers who lease their cars
Accident forgiveness available
Some drivers with violations may find better savings elsewhere
New-car replacement coverage not available
Gap insurance not available
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.3 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $53/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $108/mo |
State Farm's score | Industry average | |
|---|---|---|
| Coverage options | 4.1 | 3.2 |
| Customer service | 4.3 | 3.6 |
| Discounts | 3.9 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.7 | 2.9 |
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
Most leasing companies restrict your annual mileage — so, if you’re interested in this type of arrangement, you may plan to drive less often. This makes you a good candidate for usage-based car insurance, which helps you save money based on how safely you drive.
State Farm promises that with its Drive Safe & Save program, you won’t get higher rates because of any negative driving behavior the device captures. The company says drivers can save up to 30%, which knocks $630 off their average premium each year.
Above-average J.D. Power customer satisfaction and claims ratings
Customers can save up to 30% using Drive Safe & Save
Several available discounts
Gap coverage not available
Accident forgiveness not available
Drivers with violations may find better savings elsewhere
The best car insurance companies for leased cars provide affordable rates for their drivers. They also offer excellent customer service, add-on options, and discounts to help further lower your premium.
Even with the coverage requirements that come with a lease, you can find ways to keep your premiums as low as possible. Consider the following three strategies to keep your car insurance rates in check.
If you already have homeowners or renters insurance, bundling it with your auto policy through the same insurer can lower your overall costs. Many insurers offer bundling discounts ranging from 7% to 25%, depending on the insurer.
Your coverage needs and available rates can change from year to year. Reviewing your policy annually helps ensure you’re meeting your leasing company’s requirements while not overpaying.
Insurers regularly adjust their rates and discount offerings, so shopping around shortly before your renewal can help ensure you’re getting the cheapest car insurance.
Ask your insurer about discounts that can lower your premium without affecting your coverage.[4] These are some discounts that may be available to lessees:
Safe driver discount: For maintaining a clean driving record
Paid-in-full discount: For paying your annual premium up front
Paperless discount: For enrolling in electronic billing
Auto-pay discount: For setting up automatic payments
Good student discount: For being a qualifying student on the policy
Loyalty discount: For staying with the same insurer
Affinity or employer discount: For belonging to a qualifying group or organization
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Gap insurance, short for “guaranteed asset protection,” covers the difference between your car’s actual cash value (ACV) at the time of a total loss and the remaining balance on your lease. Because new cars depreciate quickly, your car’s ACV can fall below what you owe on the lease soon after you drive off the lot.
Gap insurance is particularly relevant for lessees because they don’t own the vehicle. If the car is totaled or stolen, a standard comprehensive or collision insurance payout may not be enough to cover the full lease balance.
Many leasing companies require gap insurance. But even when it’s optional, it’s worth considering, especially early in a lease when depreciation is steepest.
These answers to frequently asked questions can provide more information about leased car insurance.
Not exactly. Full-coverage insurance includes liability, comprehensive, and collision. Leased car insurance refers to the coverage you carry on a leased vehicle, which typically must meet full-coverage requirements.
No. Car leases don’t include insurance. You’re responsible for purchasing a car insurance policy that meets both your state’s requirements and your leasing company’s requirements before taking possession of the vehicle.
Most leasing companies require liability coverage above state minimums, as well as comprehensive and collision coverage. Some may also require gap insurance. Check your lease agreement for the exact leased car insurance requirements.
Your collision coverage pays for your leased car’s damage, minus your deductible. If you’re at fault and damage another driver’s car, your liability coverage pays for the other party’s medical bills and property damage.
Generally, yes. Leasing companies require full-coverage insurance and higher liability limits, which cost more than the liability-only coverage that drivers who own their cars can choose.
When you lease a car, you don’t build equity in the vehicle. At the end of the lease term, you return the car without ownership. You’re also responsible for any excess mileage fees or wear-and-tear charges.
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Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 20461358
Featured in
30+ years in financial services
Clinical Professor of Finance, University of San Diego
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