Why does my State Farm car insurance cost more than my car lease?
I pay $200 for my car lease but $300 in insurance fees. Why is this?
Answer provided by
Answered on May 24, 2021
“Leased cars can be more expensive to insure because lenders usually require drivers to carry a higher-coverage policy that goes beyond the state minimum car insurance requirements. Leased cars often need to have comprehensive and collision coverage, which can be expensive.
But your level of coverage is only one factor that State Farm uses when determining the cost of your monthly insurance. Other factors like your car model, driving history, age, and location influence the rate you pay.
If, for example, you live in a location with a high crime rate or have several accidents and tickets on your record, you can expect to be charged a higher premium.”
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