Is Insurance More Expensive for a Leased Car?

By John Scott Team Archive, Personal Comments Off on Is Insurance More Expensive for a Leased Car?

getting insurance for a leased vehicle

How much will it cost to insure my leased car?

In America, leasing vehicles is more popular than ever. If you are one of the many Americans considering leasing a vehicle, then you might be curious to learn how doing so will affect your auto insurance rates. In general, drivers who are leasing cars should expect to pay more for their insurance than drivers who actually own their cars. Curious to find out why? Here’s what you need to know about insuring a leased vehicle.

Insurance for Leased Vehicles

Generally speaking, insurance for leased vehicles will be on the more expensive side because they actually require more insurance coverage than a car that you actually own. Additionally, leasing companies also require drivers to carry policies with higher-than-average coverage limits before they will even issue them a car. While you might assume that the cost of this increased insurance coverage is included in your monthly lease payments, this is not really the case. While your payments might offer some gap insurance, this coverage is extremely limited and, in actuality, won’t do very much if you are forced to file a claim for your leased vehicle.

Cost of Insurance

It’s difficult to estimate insurance costs because they are based on a series of individual factors. For instance, your driving record, your leasing history, your credit rating, the type of car you are leasing, the leasing company’s requirements, and so on will all affect your auto insurance rates. The only way to get a more accurate insurance estimate is by having a frank conversation with your leasing company to learn about their insurance requirements and then going out and actually getting some insurance quotes.

This is why insurance for leased vehicles tends to be on the more expensive side.  Do you have additional questions regarding your auto insurance?  Then turn to the experts at John Scott Insurance for assistance today.  We are eager to get you the insurance coverages that you need today.

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