If you are considering leasing your next vehicle, or are already leasing but are looking for better rates for your mandatory insurance coverage, you should be interested in the top 3 auto insurance companies for leased cars.
What many people don’t realize is that leasing companies, which own the vehicles, require specific insurance coverage for those vehicles for the duration of the lease. That’s because they want to ensure their investment is protected should you get in an accident and the vehicle is totaled as well as make sure you carry enough liability coverage if you are at-fault in the accident.
The required coverage, which is always stipulated in the fine print of the leasing contract, generally specifies liability coverage of $100,000 per person/$300,000 per occurrence; property liability coverage of $50,000; and comprehensive and collision coverage for the vehicle’s actual value with no more than a $500 deductible.
While leasing companies may require more insurance that you’re used to carrying or want to carry, you can still obtain good rates by shopping around. And, if you do lease a car, the auto insurance company you’ve dealt with for years on a car you own may not be the best one for rates on a leased vehicle.
Check out these top 3 auto insurance companies for leased cars:
- GEICO – Top-rated financial strength from A.M. Best (A++) and Standard & Poor’s (AA+), GEICO insurance is one of the top four auto insurance companies in the U.S. It’s also ranked high in customer service for its website. GEICO says that most of its customers save money on auto insurance because GEICO offers some of the best auto insurance rates around. GEICO also has a handy “Coverage Coach” to help you determine the coverage levels you need. Check out their website or call 1-800-861-8380.
- Amica Mutual – Winner of the J.D. Power and Associates 2011 National Auto Insurance Study (for the past 12 years), Amica Mutual, headquartered in Lincoln, Rhode Island, is the oldest mutual insurer of automobiles in the United States, established in 1907. Amica Mutual also provides drivers with competitive rates and a full-line of auto insurance products and services. The company offers many money-saving discounts that also apply to leased cars, including multi-line, multi-car, good driver and other discounts. Amica also boasts an A++ rating from A.M. Best.
- Erie Insurance – Founded in 1925 and ranked number two on the JDPA 2011 National Auto Insurance Study, Erie Insurance provides competitive rates and numerous discounts for owners of leased vehicles, just as they do for owners of purchased vehicles. Eligible discounts include safe driver, multi-car, age 55 or older, passive restraints, anti-theft devices, anti-lock brakes, multi-policy, longevity, reduced usage, auto accident prevention course, and more. Contact Erie Insurance at 1-800-458-0811.
Other auto insurance companies to check for the best rates for leased cars include Nationwide, Travelers, Shelter and AAA. Be sure to check your state’s auto insurance rate comparison tool, if available, to get an idea of what coverage for your particular needs will run. Once you narrow down your list to the top five auto insurance companies, go to their websites or call to get a more accurate quote. Most have online tools you can use to figure out coverage levels. You can also use price quotes you get to negotiate with your current auto insurer for a potentially better deal.