Best Car Insurance for a Leased Car
A leased vehicle is owned by the leasing company, not you. Lessors universally require higher liability limits than most state minimums (typically 100/300 bodily-injury, 50/100 property-damage), collision and comprehensive with low deductibles (usually $500 maximum), and the leasing company listed as additional insured / loss payee. GAP coverage is nearly always required or implicitly embedded in the lease. The four carriers below meet typical lessor requirements out of the box and file GAP in most states.
Our shortlist
| Carrier | Featured for | Why it fits | Caveat |
|---|---|---|---|
| Progressive | Standard-market lessee | FSR A+ (Superior) affirmed by AM Best on May 1, 2026. Direct-channel standard-market pricing meeting lessor limit requirements; Loan/Lease Payoff (GAP-equivalent) coverage filed in most states; Deductible Savings Bank builds toward $0 deductibles over time. | GAP availability varies by state. |
| Allstate | Agent-channel lessee wanting bundled rewards | Captive-agent channel; GAP available; pairs with New Car Replacement coverage (useful for first year of a lease). | Published modeled premiums above the national average. |
| Travelers | Independent-agent-channel lessee | FSR A++ (Superior) affirmed by AM Best on August 21, 2026; competitive full-coverage pricing; Loan/Lease Payoff (GAP-equivalent) add-on in most states. | IA channel; need an appointed agent. |
| Nationwide | Lessee wanting Vanishing Deductible stack | FSR A+ (Superior) per AM Best; Loan/Lease Payoff available in most states; Vanishing Deductible reduces collision deductibles over time. | Verify current AM Best rating action at bind time. |
Typical lessor requirements
- Bodily-injury liability: 100/300 split limit (sometimes 250/500 on luxury leases).
- Property-damage liability: 50/100 split limit (sometimes 100).
- Collision deductible: $500 maximum (some lessors cap at $1,000).
- Comprehensive deductible: $500 maximum.
- Lessor listed as loss payee on the auto policy declarations.
- GAP coverage: pays the difference between your car's ACV at total-loss time and the remaining lease balance.
Carriers that do NOT file GAP
State Farm, USAA, and American Family are three major mainstream carriers that do not file GAP coverage. If your lessor requires GAP, you cannot satisfy it with the auto policy at these carriers. Options: buy GAP from the dealer at lease signing (one-time flat fee rolled into the lease, non-refundable if you terminate early), or add a separate policy. See GAP coverage for the trade-off.
Insurer GAP vs dealer GAP
- Insurer GAP (via auto policy): typically $20 to $40 per year as an endorsement. Pro-rated if the lease ends. Cheaper over the lease term.
- Dealer GAP (lease-contract add-on): $500 to $700 flat, rolled into the monthly payment. Non-refundable in most states if lease is terminated early. More expensive but included at signing without a separate policy decision.
Related reading
Ready to shortlist? Quote two or three of the carriers above.
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- Progressive, Loan/Lease Payoff coverage (GAP-equivalent).
- Allstate, GAP insurance.
- Travelers, Loan or Lease Gap coverage.
- Nationwide, GAP insurance.
- State Farm, Auto coverage options (confirms State Farm does not offer gap).
- AM Best via Business Wire, AM Best Affirms Credit Ratings of The Progressive Corporation and Its Subsidiaries, May 1, 2026.
- AM Best via Business Wire, AM Best Affirms Credit Ratings of The Travelers Companies, Inc. and Subsidiaries, August 21, 2026.