Leased Cars Insurance – Insuring Your Leased Vehicle

Insuring Your Leased Vehicle is Easy with These Useful Tips

Wouldn’t it be nice to drive a Mercedes Benz on a Tata budget? Or how about driving a brand spanking new car every couple of years? Anyone interest in lower monthly payments?

Well, leasing a vehicle instead of buying it outright allows drivers to benefit from all three. And leasing is making a comeback of sorts reaching its pre-recession heights as car leasing companies trumpet monthly payments as lows as $200 and car makers offering everything from compact to luxury vehicles to choose from.

Despite the undeniable advantages of leasing a vehicle though is the inescapable fact that drivers will still need to buy auto insurance for their leased vehicle. And perhaps one of the biggest factors determining the cost of auto insurance is what vehicle drivers decide to lease. For example, insuring a non-descript minivan like the Honda Odyssey LX instead of the head-turning Porsche Carrera 911 would be a difference of about $2,000!

In fact, minivans and SUVs top the recently released list of lowest cars to insurance by Auto Insurance Monitor.

AIM’s Top 10 vehicles having the lowest national average annual premiums below:

Rank Make Model National avg.annual premium
1 Chrysler Town & Country LX $1,092
2 Toyota Sienna $1,101
3 Toyota Sienna LE $1,108
4 Honda Odyssey LX $1,115
5 Nissan Murano SL $1,128
6 Jeep Wrangler Unlimited Sport $1,131
7 Honda Odyssey EX $1,138
8 Toyota Sienna $1,143
9 Ford Escape XLS $1,150
10 Toyota Highlander $1,154


But whether a driver is leasing a Toyota Sienna or a Cadillac Crossover, this simple advice will help drivers get some major relief on insuring their leased vehicle:

  • Leave No Discount Unturned – Drivers can score major savings when insuring their leased vehicles by looking at all the discounts they can possibly get. Does the vehicle have a good safety record? Are drivers affiliated with professional or trade association? Is the driver over 50? Answering yes to any of those questions will earn them some savings. Even drivers that are in low risk jobs such as teachers can get some premium relief so all they need to do is ask.
  • Keep it Clean … Your Record That Is – Driving safe and slow and obeying the rules of the road will lead to significantly lower insurance premiums on a leased vehicle. Speeding violations or at-fault accidents may lead to higher auto insurance premiums.
  • Go Higher …On Deductibles – Getting low cost auto premiums for leased vehicles is simple by raising the policy’s deductible. For example, by having a $1,000 deductible Americans can potentially save between 30 to 40% off a premium.
  • You Pay What You Drive – Leased cars such as minivans or cars that are unlikely to be targeted by car thieves will typically garner drivers the best rates available unlike cars that are popular with thieves such as the Cadillac Escalade.
  • Loyalty Only Goes So Far – Even if it’s a short term lease, it pays for drivers to compare auto insurance rates yearly, at a minimum, to always ensure they’re getting the best deal on insuring their leased vehicle.
  • Leave No GAPs – Drivers should check their auto lease contract to see if Guaranteed Auto Protection (GAP) is included. GAP kicks in when a driver totals a vehicle and pays the lease balance when a car is totaled or stolen. GAP also protects drivers from penalties if they choose to terminate their lease early.
  • Air Bags and ABS for Safety and Savings – Leasing cars with life saving features like Antilock Braking Systems and All Wheel Drive save money on premiums. Money saving discounts are mandatory in some states for leased cars with certain safety features so drivers should check with their auto insurance companies for more information.