Does Insurance Go Up When You Lease A Car?

  1. 37376 POINTS
    David G. Pipes, CLU®, RICP®
    Business Development Officer, T.D. McNeil Insurance Services, Fresno, California
    Leasing is a modified form of purchasing an automobile.  Normally auto insurance companies charge the same for automobiles owned or leased.  The interests are similar and the exposures are the same.  The only difference is that the lease company must be named in the policy to protect their interests.  
    Answered on March 13, 2014
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  2. 730 POINTS
    Darald Novak AAI
    Retired Agent and Broker, Self Employed, Albany NY USA
    Not necessarily:   although some carriers in their rating programs may move you to a higher premium tier because you are leasing a vehicle.   Many leasing companies require certain limits of liability which may be higher than your current limits. This will result in an increase in premium. They will also require certain maximum deductibles (say $1,000) for physical damage coverages.  Your current deductibles may be higher (say $2500 or $5000) and you will have to select a lower deductible for collision to meet the leasing company's requirement. This can increase your premium. Remember, there are now many factors that can influence your personal insurance premiums. Do you own or rent where you live? Your credit profile...past claims... and on and on. 
    Answered on April 28, 2014
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