Carrier vs. Carrier Comparisons
State Farm, Geico, and Progressive offer the best car insurance for leased vehicles, combining top-tier coverage, customer service, and affordability, with rates starting at $32/month.
State Farm leads with its exceptional coverage options, Geico is known for its budget-friendly policies, and Progressive excels in customer service. These providers offer reliable protection, tailored to meet the needs of leasing drivers. Learn more in our State Farm Drive Safe and Save review.
| Company | Rank | Bundling Discount | A.M. Best | Best For | Jump to Pros/Cons |
|---|---|---|---|---|---|
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#1 | 17% | B | Customer Service | State Farm |
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#2 | 25% | A++ | Affordable Rates | Geico |
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#3 | 12% | A+ | Budgeting Tools | Progressive |
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#4 | 10% | A+ | Local Agents | Allstate |
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#5 | 10% | A++ | Military Savings | USAA |
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#6 | 12% | A | Customizable Policies | Liberty Mutual |
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#7 | 10% | A | Safe Drivers | Farmers |
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#8 | 20% | A+ | Accident Forgiveness | Nationwide |
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#9 | 29% | A | Claims Service | American Family |
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#10 | 13% | A++ | Specialized Coverage | Travelers |
With flexible coverage plans and competitive pricing, they ensure peace of mind for every leased vehicle owner.
By entering your ZIP code above, you can get instant car insurance quotes from top providers.
What You Should Know
- State Farm is the top pick for comprehensive coverage and reliable service
- Leased vehicles require specialized insurance to meet leasing contract requirements
- Tailored protection plans ensure leased vehicles are fully covered and compliant
#1 – State Farm: Top Overall Pick
Pros
- Excellent Client Support: State Farm delivers top-notch customer care for leased car insurance.
- Gap Protection: Covers leased vehicles by paying off the difference between the car’s worth and remaining loan.
- Discounts for Leased Cars: Offers savings when combining policies for leased vehicles. Dive into our State Farm car insurance review for more details.
Cons
- Fewer Online Resources: Limited financial management tools for leased vehicle policies compared to others.
- Mileage Caps: Some leased car policies have restrictions on allowable mileage.
#2 – Geico: Best for Affordable Rates
Pros
- Cost-Effective Policies: Geico provides some of the most affordable options for leased vehicle coverage.
- Strong Gap Protection: Geico’s gap insurance is perfect for safeguarding leased cars. Find more info in our car insurance claims ratings.
- Various Discounts: Leased vehicle owners can take advantage of multiple discount opportunities, including multi-policy bundles.
Cons
- Lack of Local Agents: Geico emphasizes digital services, offering fewer personal interactions for leased vehicle needs.
- Fewer Policy Adjustments: Geico’s policies for leased vehicles offer less flexibility for specific needs.
#3 – Progressive: Best for Budgeting Tools
Pros
- Affordable Payment Options: Progressive offers flexible payment schedules for leased car coverage.
- Complete Gap Protection: Provides robust gap insurance for owners of leased vehicles. Read more in our full review on Progressive car insurance review.
- Advanced Budgeting Tools: Progressive’s tools assist leased car drivers in managing their finances efficiently.
Cons
- Higher Costs Without Discounts: Without applied savings, leased car premiums can be higher than anticipated.
- Slower Claims Handling: The claims process for leased vehicles may take longer than with other providers.
#4 – Allstate: Best for Local Agents
Pros
- Extensive Agent Network: Allstate offers in-person assistance tailored to leased car coverage.
- Gap Protection for Leased Vehicles: Comprehensive gap coverage ensures leased cars are protected.
- Flexible Policy Adjustments: Leased car owners can modify their coverage options with Allstate. See the reviews and rankings in our full Allstate car insurance review.
Cons
- Higher Premiums: Insurance for leased cars tends to be pricier with Allstate compared to other providers.
- Variable Agent Quality: Service levels can vary depending on the local representative managing your leased vehicle policy.
#5 – USAA: Best for Military Savings
Pros
- Military-Specific Discounts: USAA offers special deals for leased vehicle insurance targeted at military members.
- Outstanding Customer Service: USAA provides high-level support for managing leased car insurance.
- Comprehensive Gap Insurance: USAA includes robust gap insurance for leased car drivers. Learn more by reading our USAA car insurance review.
Cons
- Restricted Access: Coverage is limited to military personnel and their families, reducing access for others seeking leased vehicle coverage.
- Delayed Claims Processing: Some leased car drivers experience slower claims processing with USAA.
#6 – Liberty Mutual: Best for Customizable Policies
Pros
- Customizable Policy Options: Liberty Mutual allows owners of leased vehicles to personalize their insurance packages.
- Solid Gap Protection: Provides robust gap coverage, ensuring leased cars are adequately protected. Find out more in our guide car insurance review of Liberty Mutual.
- Adjustable Payment Options: Liberty Mutual offers adaptable payment plans for leased vehicle policies.
Cons
- Higher Rates Without Bundles: Policies for leased vehicles may cost more if bundling discounts aren't applied.
- Slower Claims Process: Some owners of leased vehicles experience longer waiting times for claims to be processed.
#7 – Farmers: Best for Safe Drivers
Pros
- Safe Driving Discounts: Farmers offers lower premiums to drivers of leased vehicles who maintain an accident-free record.
- Comprehensive Gap Protection: Provides gap insurance to cover the difference for leased cars in case of total loss.
- Excellent Agent Support: Offers in-person assistance to meet the unique needs of leased vehicle owners. You can learn more in our Farmers car insurance review.
Cons
- Premium Increases After Claims: Rates for leased vehicles may rise following claims, even with safe driving records.
- Fewer Customization Options: Offers limited policy flexibility for leased cars compared to other providers.
#8 – Nationwide: Best for Accident Forgiveness
Pros
- No Rate Hikes After First Accident: Nationwide doesn’t raise rates for leased vehicle owners after the first accident.
- Strong Gap Coverage: Nationwide offers excellent gap insurance for leased vehicle protection. See average Nationwide rates in our Nationwide car insurance review.
- Telematics-Based Savings: Leased car drivers can reduce premiums through Nationwide’s SmartRide program.
Cons
- Lengthy Claims Processing: Some customers with leased cars report slower handling of claims.
- Fewer Digital Options: Online resources for managing leased vehicle policies are more limited compared to others.
#9 – American Family: Best for Claims Service
Pros
- Excellent Claims Service: American Family provides highly-rated claims support for leased vehicle drivers.
- Comprehensive Gap Insurance: Offers gap coverage to ensure leased vehicles are adequately insured.
- Telematics Savings: Leased vehicle drivers can reduce costs through the KnowYourDrive program. Explore more add-on options in our review of American Family car insurance.
Cons
- Higher Initial Costs: Leased vehicle insurance premiums can start higher compared to other options.
- Limited Availability Nationwide: American Family’s leased vehicle coverage may not be available in all regions.
#10 – Travelers: Best for Specialized Coverage
Pros
- Specialized Coverage for Leased Vehicles: Travelers offers customized plans for leased cars.
- Top-Quality Gap Insurance: Protects leased vehicles with thorough gap insurance options.
- Telematics-Based Discounts: Leased vehicle owners save with IntelliDrive for safe driving. Read more about Travelers’ ratings in our Travelers car insurance review.
Cons
- Costlier Policies: Leased vehicle insurance may come at a higher price compared to competitors, even with discounts.
- Fewer In-Person Agents: Offers fewer physical locations for leased vehicle insurance support.
Rate Comparison for Leased Vehicle Coverage
Reviewing monthly coverage costs is essential when selecting insurance for leased vehicles, as it helps strike the perfect balance between affordability and comprehensive insurance coverage The monthly rates for minimum and full coverage differ greatly across major insurance companies.
| Insurance Company | Minimum Coverage | Full Coverage |
|---|---|---|
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$44 | $130 |
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$37 | $105 |
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$42 | $118 |
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$32 | $98 |
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$45 | $121 |
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$39 | $109 |
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$38 | $115 |
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$35 | $112 |
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$40 | $110 |
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$33 | $93 |
Geico delivers the lowest rates, offering minimum coverage for $32 and full protection for $98, making it a top pick for those mindful of their budget. USAA and American Family also present competitive pricing, with USAA’s full coverage at $93 and American Family’s at $105.
Don't make it easy for thieves. Take a few simple steps to add layers of protection against your vehicle being targeted. pic.twitter.com/yJOoNRQt50
— State Farm (@StateFarm) November 13, 2023
On the more expensive side, Liberty Mutual and Allstate charge $121 and $130 for full coverage, respectively, reflecting the wider range of coverage they offer.
| Insurance Company | Available Discount |
|---|---|
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Good Driver Discount, Multi-Vehicle Discount, Auto Safety Features, Low Mileage Discount, Loyalty Discount |
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Good Student Discount, Multi-Car Discount, Safety Equipment Discount, Homeowners Discount, Affinity Group Discount |
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Good Driver Discount, Multi-Policy Discount, Anti-Theft Discount, Defensive Driving Course Discount, Military Discount |
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New Car Discount, Vehicle Safety Features, Multi-Policy Discount, Paperless Discount, Early Shopper Discount |
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Safe Driver Discount, Anti-Theft Discount, Accident-Free Discount, Family Plan Discount, Defensive Driving Course Discount |
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Multi-Policy Discount, Continuous Insurance, Snapshot Discount, Homeowner Discount, Sign Online Discount |
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Good Driving Discount, Multi-Line Discount, Vehicle Safety Discount, Good Student Discount, Drive Safe & Save Discount |
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Safe Driver Discount, Multi-Car Discount, Hybrid/Electric Vehicle Discount, Home Ownership Discount, New Car Discount |
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Safe Driver Discount, Multi-Policy Discount, Military Discount, Family Discount, Garage Parking Discount |
For leased vehicle drivers, understanding these price differences helps choose a provider that meets both budget and coverage needs. Comparing minimum and full coverage options ensures you find the best insurance plan for your lease.
Main Factors Impacting Insurance Rates for Leased Vehicles
The cost of insurance for leased cars can fluctuate based on various elements, many of which might not be immediately apparent to drivers. Being aware of these factors can assist in lowering expenses and securing the right policy for your vehicle.
- Car Model: The brand and type of your leased car significantly affect insurance rates, with high-end and performance vehicles generally costing more to cover.
- Driving History: Maintaining a clean driving record can help reduce rates, while previous accidents, tickets, or claims usually drive up the cost.
- Residence: Where you reside affects insurance pricing—rates tend to be higher in cities due to factors like theft and traffic incidents.
- Credit History: Insurers may consider your credit standing when calculating premiums, and lower credit scores often lead to higher costs.
- Coverage Type: The level and type of protection you select, such as full coverage or additional options like gap insurance, can heavily influence your overall insurance bill.
By recognizing and addressing the factors that influence leased vehicle insurance rates, drivers can make informed choices that not only reduce their premiums but also ensure they have the right level of protection.
Adjusting aspects like coverage, driving habits, and vehicle type can lead to significant savings while maintaining the peace of mind that comes with comprehensive insurance. Discover insights in our practical guide for understanding car insurance.
Practical Strategies to Reduce Car Insurance Costs
Car insurance premiums can add up, but there are several approaches to lower them without sacrificing essential coverage. By recognizing key cost drivers and making intentional changes, drivers can reduce their monthly insurance bills.
Bundling multiple policies, such as car, home, and liability car insurance, is one of the easiest ways to secure discounts. Additionally, keeping a clean driving record leads to lower premiums, and choosing higher deductibles can reduce the insurer’s liability.
Frequently comparing rates from various companies ensures you’re getting the best deal available. You can also take advantage of discounts for driving fewer miles or enrolling in usage-based programs, which can provide substantial savings if you don't use your vehicle often.
Lastly, improving your credit rating can help you access better rates, as insurers often consider credit history when determining premiums.
Case Studies: Best Car Insurance for Leased Vehicles
Securing the right policy for leased vehicles is crucial to cover specific needs, such as gap coverage and full protection. The following case studies show how State Farm, Geico, and Progressive effectively cater to their customers' demands. Read more about our Progressive Snapshot review.
- Case Study #1 – Dependable Protection With State Farm: John leased a high-end sedan and required full coverage to satisfy his leasing agreement. State Farm crafted a personalized policy, including gap insurance, ensuring his car was fully covered in case of a collision or total loss.
- Case Study #2 – Budget-Friendly Options From Geico: Mary leased a compact crossover and needed insurance that wouldn’t stretch her budget too thin. Geico provided her with an affordable full coverage plan and gap protection, offering her security at a competitive rate.
- Case Study #3 – Flexible Payments From Progressive: Chris, leasing a performance vehicle, sought flexibility due to his fluctuating income. Progressive offered a customizable plan with usage-based savings and reasonably priced gap coverage, helping him manage his finances while protecting his car.
Choosing the right insurance for a leased vehicle is vital to meeting leasing requirements while managing costs and ensuring comprehensive protection.
As these case studies demonstrate, State Farm, Geico, and Progressive offer tailored solutions, from affordable rates to flexible payment options and essential gap coverage. With the right provider, drivers can confidently navigate their leasing agreements without sacrificing security or financial peace of mind.
Leading Car Insurance Providers for Leased Vehicles
When it comes to insuring leased vehicles, selecting the right provider is key to meeting coverage requirements and minimizing costs. State Farm, known for its customer-focused service, excels in offering comprehensive coverage and gap insurance tailored for leased cars.
Geico, recognized for its affordability, provides low-cost full coverage plans, making it a popular choice for budget-conscious drivers. Progressive, with its flexible payment options and usage-based discounts, offers a customizable approach perfect for those needing adaptable policies.
Each of these best car insurance companies delivers a blend of protection, value, and convenience that makes them ideal for drivers leasing vehicles, ensuring coverage that fits both the lease agreement and the driver's financial situation.
See how much you’ll pay for car insurance by entering your ZIP code below into our free comparison tool.
Frequently Asked Questions
Who typically has the cheapest car insurance for leased vehicles?
Geico typically offers the cheapest car insurance for leased vehicles, providing affordable full-coverage plans.
What's the cheapest car insurance for full-coverage on a leased vehicle?
Geico typically offers the cheapest full-coverage car insurance for leased vehicles, with competitive rates and comprehensive options.
What are the key factors insurers consider when providing leased vehicles car insurance?
Insurers consider the vehicle's value, the driver’s record, credit score, location, and the required coverage level when providing leased vehicles car insurance. Read more in our article how does my credit score affect my insurance premium?
Is insurance more expensive if you lease?
Yes, insurance is generally more expensive if you lease because lenders usually require full coverage, including gap insurance.
Is Allstate cheaper than Geico for leased vehicles car insurance?
No, Geico generally offers lower rates than Allstate for leased vehicles car insurance, especially for budget-conscious drivers.
Who has the lowest car insurance rates in California for leased vehicles?
Geico usually has the lowest car insurance rates in California for leased vehicles, offering competitive pricing on full coverage policies. Find more details about the best and cheapest car insurance in California.
Who is cheaper for leased vehicles car insurance, Geico or Progressive?
Geico tends to be cheaper than Progressive for leased vehicles car insurance, offering lower rates for both minimum and full coverage.
Who is the most trusted insurance company for leased vehicles car insurance?
State Farm is often considered the most trusted insurance company for leased vehicles car insurance due to its comprehensive coverage and excellent customer service.
What is the cheapest car insurance group for leased vehicles car insurance?
Geico consistently ranks among the cheapest car insurance groups for leased vehicles car insurance. For additional details, explore our best and cheapest car insurance in Vermont.
What is the best type of leased vehicles car insurance to get?
The best type of leased vehicles car insurance is full coverage with gap insurance, ensuring you meet lease requirements and are fully protected.