Is insurance included when you lease a car?
Insurance is not included when you lease a car, but it is required. Odds are the car insurance being offered with your lease is simply an additional “convenience” option provided by the leasing company. You will find better auto insurance rates when you comparison shop online. Enter your ZIP code below for free leased car insurance quotes.
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Written by
Shuman Roy
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Reviewed by
Joel Ohman
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UPDATED: Jul 19, 2021
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Insurance Q&A: “Is insurance included when you lease a car?”
If the leasing company you’ve decided to go with is including car insurance as part of the lease agreement, don’t sign it!
Odds are the car insurance you’re being offered is simply an additional “convenience” option provided by the car leasing company.
It is the same convenience that leads to the purchase of a $6 gallon of milk from the local gas station.
Or how about the convenience of the $14 cheeseburger you’re eating at the airport while reading this post, or the $7.00 per gallon gas for the convenience of not having to re-fill the gas tank when returning your rental car?
Are you picking up on what we’re getting at here?
Insurance for a leased vehicle can already be more expensive than if you purchase the car outright, so it’s best to shop around.
Utilize Your Options
It is recommended you obtain insurance quotes online and/or visit a local independent insurance agent for multiple car insurance quotes PRIOR to finalizing the lease on your new ride.
This is the best way to ensure you get appropriate coverage for the most cost effective insurance premium.
Your agent can fax the proof of insurance over to the leasing company in real time and get you on your way, likely at half the cost of the leasing company’s insurance policy offerings.
Tip: Ask your insurance agent about their GAP coverage and new car replacement insurance options rather than purchasing that coverage from the leasing company.
It is also likely much cheaper than the same coverage offered by the leasing company.