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Car Insurance for High-Mileage Leases (Updated August 2022)

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Amy Beardsley

By: Amy Beardsley

Edited by Jackie Cohen

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Buying car insurance for high-mileage leases is similar to buying a policy for standard leases. However, car insurance for leased vehicles can have a higher price tag. And if you have a high-mileage lease? The premiums are likely to be higher still.

Fortunately, the easiest way to get the cheapest car insurance for high-mileage leases is by comparison-shopping. Get car insurance quotes from top companies in real-time with Insurify.

Quick Facts

  • Car insurance can be more expensive for a high-mileage leased vehicle.
  • The average lease has a mileage limit of 10,000 to 15,000 miles each year.
  • Higher-mileage leases are available, so ask the lessor before signing the lease deal.

What is a high-mileage lease?

Does it matter how much I drive on my leased vehicle?

It’s common for leasing contracts to have an annual mileage limit of around 15,000 miles. If you exceed those limits, you may be faced with fines at the end of your lease.

Dealerships generally expect you to drive between 10,000 and 15,000 miles each year with a typical lease. If you go over the allowed number of miles, you may get hit with excess mileage charges—as much as 10 to 25 cents per mile. For example, an extra 1,000 miles can cost between $100 and $250 in mileage fees when the lease ends.

But high-mileage leases are available, and you can negotiate extra mileage caps on your lease ahead of time. You’ll pay more in the short term, but the it’s often less expensive than paying for excess miles at the end of the lease.

See More: Best and Worst Sites to Compare Car Insurance

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Insurance Coverage You Need

Although most states in the U.S. have minimum auto insurance requirements, banks and dealers want to ensure the car’s value is protected if involved in an accident. So they typically require more coverage than the state-mandated minimums when leasing a vehicle.

Since you’re leasing (and not buying) the vehicle, you must name them on the insurance policy as an additional insured. If the car becomes damaged, the insurer can pay the claim directly to the bank or dealer.

However, requirements vary, so you should check with your lender to determine the specific car insurance requirements needed.

Common State Requirements

Almost every state requires all drivers and vehicles to have insurance that meets the state’s basic requirements. Requirements vary among states, but they usually include two major types of coverage:

  • Bodily injury liability pays medical bills for other people affected by an accident. Typically, states require at least $25,000 per person and $50,000 per accident.
  • Property damage liability pays for repairing or replacing someone else’s property after an accident. Usually, states require at least $10,000 per accident.

Also, some states require uninsured (UM) and underinsured motorist (UIM) coverage. If the other driver is at fault, UM/UIM helps if they have no insurance or if their insurance is too low to cover your medical and vehicle repair expenses.

Common Lessor Requirements

Companies that lease vehicles tend to have additional car insurance requirements above and beyond the state-mandated minimums. They want to protect the value of the vehicle so they can lease it again or sell it later. Your lease may expect you to get:

  • Collision coverage to cover repairs after collision with an object or another vehicle
  • Comprehensive coverage to cover damage caused by things other than a collision, such as falling objects, theft, vandalism, and natural disasters

Additionally, most leasing companies require higher levels of liability insurance than the state. Expect to insure for $100,000 per person and $300,000 per accident for bodily injury and $50,000 in property damage. Your lessor may also set a maximum deductible of $500 or $1,000 to ensure the vehicle gets repaired after an accident.

See More: Best Car Insurance Companies

Is gap insurance mandatory?

Gap insurance covers the difference between how much you owe and how much the car is worth at the time of the claim. For example, suppose your insurance company totals your leased vehicle after an accident. If your car had above-average depreciation, your insurance claim might not cover the full cost of your lease. But gap insurance can step in to pay the difference.

Gap insurance is not mandatory by state laws. But there’s a good chance your lender will require you to buy coverage.

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How much does high-mileage lease car insurance cost?

If you opt for a high-mileage car lease, expect to pay more than the average cost of auto insurance. This isn’t simply because the vehicle is leased—insurers don’t consider whether a car is leased, financed, or bought outright when setting rates.

But a lessor’s insurance requirements generally mean you need to buy more than your state’s minimum coverage limits. And more coverage means higher premiums.

See More: Cheap Car Insurance

Your Lease Ends: Now What?

Most car leases last for 24 or 36 months, but what should you do at the end of your lease? You have a few options, and your choice depends on your circumstances.

Lease Another Vehicle

The first option is to trade in the leased vehicle and choose a new one to lease, starting the cycle again. If you have a good relationship with the dealer or finance company, they may have incentives to reward you for your loyalty.

This is a good option if you prefer to drive new cars and not worry about repairs on older or used vehicles.

Buy the Car You Leased

If you loved the car you leased and want to keep it, consider buying it. Before moving ahead, carefully review the terms of your lease and the car’s condition to ensure it makes financial sense. You can also check the car’s market value when you turn it in and calculate the monthly payments. Then, decide if you’d rather put that money toward a new lease or buy a different car.

Opt-Out of Car Ownership

If your circumstances change, you might not need a vehicle. In that case, you might choose not to own a car at all. For example, suppose you moved to a new area where public transit is easy and convenient. You might not need a car anymore when your lease ends and use public transit instead.

Buy a New or Used Car

Finally, the last option is to buy a new or used car. Maybe you discovered that leasing a car isn’t right for you. Instead, perhaps you need a larger or smaller vehicle that you can keep for long-term use.

When buying a car, find out if any of the money you paid toward your lease can help with a down payment. If not, you’ll need to come up with the funds for a down payment. Or you could buy a new vehicle outright in cash if you have enough money saved.

Buying a car doesn’t usually have the same car insurance requirements as when you lease. But if you take out a car loan to buy a used car or a new one, your lender might want you to carry collision, comprehensive, and gap insurance during the financing term.

How to Get Insurance for a High-Mileage Leased Car

Finding the right insurance coverage isn’t rocket science, but it can require a bit of know-how. So, how do you get the right policy if youre ready for a high-mileage leased car? Let these steps guide you.

Research the kind of vehicle you want. Determine the car that fits your driving style, comfort, and fuel efficiency needs. Generally, the more expensive the car, the more your auto insurance will cost.

Estimate mileage. Consider how many miles you expect to drive each month or year. The annual mileage you travel will factor into the cost of insurance and the lease.

Check the coverage you will need. Before getting your auto insurance quote, know precisely what insurance limits you must meet for the high-mileage leased car you want.

Get a quote on the insurance policy. Use a car insurance comparison tool like Insurify to find insurance quotes on the new car per the lease terms. Insurify lets you shop multiple insurance companies, using the same coverage limits to find the best price.

Make sure you can afford it. Budget the car payment and insurance costs before you sign and drive it off the lot.

Sign the lease. Review the lease contract first to make sure you understand what you’re signing.

5 Ways to Save on Leased Car Insurance

You aren’t stuck with the high cost of car insurance when you lease a vehicle. Even with a high-mileage lease, you have options to save on premiums.

Drive Fewer Miles

The more you drive, the more your auto insurance costs. So driving fewer miles is a reliable way to reduce your leased car insurance immediately. It can also lower the overall cost of your lease.

Lease a Less Expensive Car

Leasing a less expensive car saves you money in many ways, including on car insurance. Here’s why: car insurance companies consider the vehicle’s value when determining rates. So the less your car costs, the less the insurance could cost.

Ask for Discounts

Most car insurance companies offer discounts. You might qualify for savings, from safe driver discounts to multi-car and married discounts. Always ask your insurer about discounts, and make sure you’re taking advantage of all the ones available.

Improve Your Credit Score

Most car insurance companies factor in your credit score when quoting your rates. When you improve your credit score, you can reduce the cost of car insurance (and often your lease payments, too!). Simple ways to improve your credit include paying your bills on time and reducing your outstanding debt.

Comparison-Shop for Car Insurance

Comparing-shopping is the most efficient and straightforward way to save on leased car insurance. Insurify’s comparison tool checks prices with the nation’s top auto insurers. You’ll get quotes from dozens of companies to compare them in real-time. Best of all, Insurify automatically applies discounts to help you save even more.

Is a high-mileage lease right for you?

If you drive a lot of miles, a high-mileage lease might be right for you. Just remember: when choosing to lease a vehicle, address the mileage cap before you sign the lease. Don’t wait until you turn in the car. Typically, lenders are more willing to give you a price break upfront. Otherwise, you could face steep charges for driving additional miles.

Frequently Asked Questions

  • Generally, a high-mileage lease is one that permits the lessee to exceed the standard annual mileage of 10,000 to 15,000 per year.

  • Auto leases are pretty straightforward. You select the car you want to lease, agree to the lease terms with the dealer or lender, and drive the car until you are required to return it. A standard lease can last anywhere from 12 to 60 months.

  • Car insurance can be more expensive if you lease vs. buy a car. It’s usually because lessors require additional coverage beyond the state-mandated minimums, and additional coverage comes with a higher price tag.

  • Drivers who exceed their allowed mileage on a lease pay additional fees based on how many extra miles they drove. Negotiate leasing options upfront if you think you’ll drive more than the mileage limit.

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  • Data scientists at Insurify analyzed over 40 million auto insurance rates across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. With these insights, Insurify is able to offer drivers insight into how their car insurance premiums are priced by companies.

Amy Beardsley
Amy Beardsley

Insurance Writer

Amy is a personal finance and technology writer. With a background in the legal field and a bachelor's degree from Ferris State University, she has a talent for transforming complex topics into content that’s easy to understand. Connect with Amy on LinkedIn.

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