Leasing companies require that you get a high level of insurance coverage.
This typically means you will need liability coverage of $100,000 per person / $300,000 per occurrence and property liability coverage of at least $50,000.
That's significantly higher than legal state minimums, which usually require $30,000 in total liability coverage and $5,000 for property damages.
So why do leasing companies care what kind of insurance you have? It's mainly due to state laws that place liability on not only the driver, but also the owner of the vehicle.
When you lease, the vehicle is actually owned by the leasing company. If you were to cause an accident that injured someone, that person could sue your leasing company, which is usually what happens since they have deeper pockets.
If you're the type of person that gets a higher level of coverage anyway, then this won't be an extra cost to you. However, many people opt for minimum coverage, so leasing will potentially add a few hundred dollars to their typical insurance cost.
It's smart to take into account the insurance costs of any vehicle you're considering. Here are some of the least expensive and most expensive cars to insure to give you an idea.
Least Expensive Cars to Insure
The good news: You can save a lot of money on car insurance by doing a little comparison shopping. Insurance rates change all the time - it's a good idea to get some competitive quotes every couple of years. This small effort can save you hundreds of dollars per year.
Here's a pull-down menu that shows you what major insurance providers are currently charging in your state: