Some things you need to know about insurance before you lease
Most auto lease companies require you to maintain insurance coverage as follows:
* Liability coverage: $100,000 per person / $300,000 per occurrence
* Property liability coverage: $50,000
* Comprehensive and collision for actual value with no more than $500 deductible.
In Canada, $1,000,000 in liability coverage is required for car insurance when leasing.
This may be more coverage than you would buy normally, which could mean additional cost to lease  unless you know how to get better rates.
What’s the deal with car insurance when leasing?
When you lease, the vehicle that you’ll drive belongs to the lease company. They want to make sure that their investment is covered should you have an accident that destroys the vehicle, or if the vehicle is stolen. They may also want you to have sufficient liability coverage in case you are liable for your fault in causing an accident. This not only protects you from financial disaster, but it also protects the lease company if they should be held partly responsible.
Of course, having sufficient car insurance coverage is smart whether you are leasing or not. Many people attempt to get by with minimum coverage but it’s a big risk since there’s so much to lose. Accidents do happen. Lawsuits are common. And if you have insufficient car insurance coverage, you can be personally sued for additional money. Many smart consumers add additional coverage with “umbrella” policies.
How to minimize insurance costs
What most people don’t know is that they are probably already paying too much for their car insurance. It’s too easy just to stick with the same company you’ve been with for years, even though rates are lower elsewhere.
So, if you intend to lease and the insurance requirements are higher than you currently have, you can nearly always get the higher level of insurance at about the same rate as you are currently paying by simply investing a little time shopping by comparing quotes from a few other insurance companies, asking for discounts that you already qualify for, and adjusting your coverage.
Insurance companies offer a variety of discounts based on driving records, other insurance you may have with them, having multiple cars, safety equipment, and such. Of course, vehicle make/model, repair costs, theft history, previous violations, and driver age also affect insurance costs. Even your credit score can now affect your insurance rates with some companies.
The vehicle you buy or lease can have a huge effect on your insurance rates, regardless of which company you choose. A Honda Accord will cost you less to insure than a Cadillac Escalade, not so much because the Honda is a less expensive vehicle, but because the Escalade is one of the top most-stolen vehicles in the country.
Is it possible to find cheap car insurance? No, but you can mimimize what you pay by shopping smart and asking for discounts.
Here are some of the possible discounts you should ask about. Be aware that all auto insurance companies may not offer discounts for all these items.
[ ] $500 deductible
[ ] $1,000 deductible
[ ] More than one car
[ ] No accidents in 3 Years
[ ] No moving violations in 3 years
[ ] Driver training courses
[ ] Defensive driving courses
[ ] Anti-theft devices
[ ] Good credit score
[ ] Low annual mileage
[ ] Air bags
[ ] Anti-lock brakes
[ ] Traction and stability control systems
[ ] Daytime running lights
[ ] Student drivers with good grades
[ ] Auto and homeowners coverage with the same company
[ ] College students away from home
[ ] Long-time customer
[ ] Other discounts
The key to car insurance savings is not the discounts, but the final price. A company that offers few discounts may still have a lower overall price.