Leasing a brand-new BMW allows you to drive the car you want, but it also requires you to purchase insurance to protect the vehicle and uphold your agreement. The terms of your lease may include specific parameters and minimums for the insurance policy. Learning about the cost, terms, and requirements of a BMW lease insurance policy can help you find the best coverage for you and can increase your ability to uphold your leasing agreement.
BMW Lease Insurance Costs
The exact cost of your car insurance policy and coverage for a BMW lease agreement can vary depending on a multitude of factors. Often, insurance rates for a lease don’t appear much higher than regular insurance rates; however, drivers looking for discounted rates and minimal coverage may encounter restrictions in the leasing agreement. The variability of lease agreements, requirements, and insurance policies make it difficult to provide an estimated average cost for a BMW lease insurance policy.
BMW Lease Insurance Requirements
The terms and agreements in your leasing contract typically include details about the minimum insurance requirements and parameters of the leasing agreement. Elements such as the deductible, coverage plan, and duration of your insurance may appear in the contract. Here are some common minimum requirements for a BMW lease insurance plan:
Deductible
A BMW leasing agreement typically requires drivers and customers to hold an insurance policy with a maximum deductible of $1,000. Drivers looking to pay a lower monthly rate by accepting a greater deductible amount may breach the agreements and requirements of the lease. Having a maximum deductible for a BMW lease allows the dealer to reduce their level of risk and ensures the upkeep and coverage of the vehicle.
Coverage Requirements
The terms of your leasing agreement may require your insurance policy to have a particular level and type of coverage. Common requirements from the state, manufacturer, or dealer often include a minimum plan including liability coverage to ensure the safety and coverage of others on the road. Liability coverage provides funding and assistance for other drivers who experience damage or injuries when an accident is deemed the fault of the policyholder.
Insurance Cost Factors
Multiple factors, including your credit, location, model, and history, can affect the cost of your insurance policy. Here are some elements that can influence your overall rates and payments:
Cost by Model
Your overall insurance rates can vary according to the make and model of your vehicle. BMW cars often come with higher insurance rates because of their expensive parts, repairs, and specialized engineering. A more complex or high-end BMW lease model includes a higher average insurance rate to compensate for the additional repair costs and increased risk factors.
State Requirements
Insurance requirements for a leased vehicle can vary depending on the car and the driver’s state of registration. The most common regulations require drivers to have liability insurance policies for their vehicles. Liability insurance includes both bodily injury and property damage liability coverages. Some states may also have less common requirements for lease plans, such as collision and comprehensive coverage policies.
Driver History
When you apply for a lease insurance policy, the insurance provider evaluates your driver history to determine your level of risk based on various factors. Drivers with more years of experience and no infractions pose less risk for the insurance company and may often receive lower rates. Customers with DUIs, DWIs, or speeding tickets will see increased fees and monthly payments because of the increased liabilities and risk factors for the insurer.
How To Get Insurance for Your BMW Lease
Leasing a car requires you to hold an insurance policy to cover any damages and repair costs or accidents. Follow these steps to find an insurance plan that meets your needs, fits your budget, and fulfills your leasing agreement.
1. Read Your Agreement
Before comparing providers and plans, carefully read through the insurance portion of your leasing agreement. The contract may include specific coverage and deductible requirements. Establish the needs and terms of your leasing agreement before researching plans to narrow your search and ensure proper compliance for your BMW lease.
2. Compare Coverage
Once you know what type of coverage your lease requires, begin looking at the different providers and policies. You can request quotes and provide information about your background and lease agreement to establish an approximate monthly cost and compare the value of each potential insurance plan.
3. Select a Provider
After evaluating your options, select the plan that offers the best value, protection, and rates within the parameters of your leasing agreement. File your paperwork and application for coverage before beginning your lease to ensure you can provide the dealer with proof of your insurance policy. Leasing companies, manufacturers, and dealers won’t let you drive away in your leased vehicle without proof of coverage.
4. Consider Additional Protection
Leasing a BMW comes with additional risks and liability for the driver. You may consider adding other protection policies to your lease to supplement your insurance coverage and reduce the likelihood of financial liabilities. BMW offers an optional Lease-End protection policy that waives the usual charges for excessive wear up to $5,000 with no deductible. Drivers worried about maintaining the condition of their car throughout the duration of their lease can add this protection to avoid fees when returning the vehicle. Other coverage options and plans, such as gap insurance, can also increase your protection.
Purchasing an insurance policy when leasing your BMW provides extra protection, assistance, and security in case of an accident or outside factors. Having full insurance coverage for your vehicle can help with the costs of repairs due to collisions or other damage to maintain the condition of your car and help you uphold your leasing agreement. Before leasing a BMW, use the information in this article to guide your research and help you predict the costs, factors, and terms of your lease and car insurance policies.
At FIXD, our mission is to make car ownership as simple, easy, and affordable as possible. Our research team utilizes the latest automotive data and insights to create tools and resources that help drivers get peace of mind and save money over the life of their car.
