How does car insurance work on leases for first time car buyers? I believe this also needs to be taken into account when discussing monthly payment. Any links or calculators especially for first time car buyers would be appreciated. Apologies if this has already been discussed earlier.
Uh…you contact insurance brokers and insurance companies and get quotes. It has nothing to do with the lease payment, except that you need proof of insurance for the deal to be funded.
Are you from the UK?
The same as any car you buy, except there are often minimum coverage standards that exceed state minimums
As others stated, it’s not part of your lease but something that you should take into account from a personal finance perspective. Lessors do state the minimum coverage required and you’ll have to purchase that separately.
Shop around and call around. State Farm, Progressive, GEICO, Allstate, and those are just the big ones. You need to find an insurer that does business in your state.
Just a heads-up - If you’re a first time driver, don’t expect it to be cheap. GLWT
You will need to go with a non standard carrier if you do not have current coverage. Once you are established ( 6 months to a year of current) the more standard (better carriers) will insure you. Reach out to an insurance broker that has access to both markets. They will make it easy for you.
Insurance is way too bespoke for anyone to tell you how much to expect as your premium.
It’s going to depend on, among many things:
- Age
- Exact location.
- Credit history (in the US)
- Driving record (in the US)
- Etc etc
Thank you. I am in NJ and first time car buyer looking at leasing. Was thinking about this from a personal financial perspective
Dude. Just goto any of the following websites and pull a quote:
geico
progressive
esurance
farmers
nationwide
statefarm
allstate
metromile
erica
travelers
amica
here’s something else to read upon:
1 Like
I don’t believe it’s a huge factor to insurance carriers whether you lease or purchase. There’s a lot more that goes into how carriers price a driver and you can get an idea based on the questions you’ll be asked to answer. Don’t be surprised how wide-ranging the quotes you get will be. Carriers will price whatever they price - just need to shop until you find something you’re comfortable with from a price and service standpoint.
You are leasing a new car, your insurance is going to go up…a lot.
You can hack a new insurance plan, but that’s separate from the car.
This is one area where pricing is useless. Everyone has a different driving record, age, location, risk factors, etc where it is impossible. You can factor it in on a personal level but it is impossible to generalize an insurance payment for one car across a forum.
1 Like
Thanks!
As everyone mentioned, there are a ton of factors to getting an insurance quote.
Biggest factor that will drive your insurance premiums up is due to not having any prior insurance history.
As you build up your continuous years of insurance, pricing will get cheaper as you shop every year up until year 5-6 where it starts to plateau a bit as all companies look at how long you were insured for and rate accordingly.
In NJ I suggest Geico for best pricing, although I do not have it I can’t seem to beat their pricing in NJ most times.
I can help you shop with a couple companies if you need assistance, just give me a PM - thanks!
Thank you everyone. I am getting closer to identifying the kind of car I want. I will get back when I am at point of purchase.
Also, thank Josh for the offer, really appreciate the help from everyone.
Determining how much car insurance you need for a leased vehicle works the same as getting coverage for a car you buy. However, since you’re expected to return your leased vehicle in the same condition you originally leased it, consider including comprehensive, collision and uninsured/underinsured motorist on top of your state’s minimum liability requirements. You may also be required to get gap coverage, to cover the difference between the value of the car and what is still owed on your lease after a major accident. Your exact monthly costs come down to where you live, what kind of car you lease, which coverages you buy and your driving habits, but the annual average car insurance rates are about $108 per month.
You can find a handy car insurance calculator here: https://www.finder.com/car-insurance-calculator
These are contractually required to have per the lease requirements. The contract will spell out what terms are required.
Also, gap is included in almost every lease (with Toyota financial being the main exception).
1 Like
This topic was automatically closed 60 days after the last reply. New replies are no longer allowed.