Compare Quotes

Motorists more concerned with driving new, late model cars often choose to lease rather than own. They have exclusive use of a car under warranty that’s exchanged or bought out at the end of term. While leasing almost always costs more than buying, upfront costs are often more affordable with a lease.

There are a number of factors to balance between leasing and purchase options. One thing that doesn’t change very much is obtaining insurance and how much it will cost. Should you use the car insurance calculator here at Quote Finder, your estimates remain accurate whether you decide to buy or lease.

How Insurers Calculate Car Insurance Premiums


The price of a car insurance policy represents an assessment of risk for each situation. One of the largest influencing factors is the driving record and claims history of the motorist buying the policy. Having accidents or moving violations on their record is the single-most important, user preventable negative risk factor. Simply put, the more negative risks a driver has, the more they pay in insurance.

It’s not the only factor, however. The type of car a driver chooses also affects insurance price. Depending on features and model history, insurers raise or lower a vehicle’s risk factor. For example, 4 door sedans find favour with families, as do minivans, SUVs and crossovers. Family vehicles are used in statistically safer ways than coupe or sport versions of the same model. Anything about a vehicle that invites more aggressive driving habits, such as a high performance engine, lends a negative effect on vehicle risk. There, too, insurers raise premium costs.

Other factors include where the insuring driver lives. Postal regions in Canada have risk rankings as well. These base on statistical activity for the region. Areas prone to more accidents or higher claims cost all residents in that area when it comes to auto insurance. For example, Brampton has high rates of suspected insurance fraud, congested roads and an infrastructure lagging behind population growth. These factors are a key reason behind the highest insurance premiums in the country.

Other drivers listed on the policy, chosen deductible rates and optional endorsements also impact insurance policy costs. All factors affect coverage on a vehicle whether it’s owned or leased.

Does my insurance company need to know if my car is owned or leased?


While the cost of insurance won’t change, your insurance company, agent or broker does need to know when a vehicle is leased since the leasing company remains the owner of the vehicle. The driver of the leased vehicle earns cost savings due to the fact that, essentially, they pay only for the depreciation of the car over the lease period. There’s no equity or ownership share built for the driver. Since the leasing company continues to own the vehicle, they must be listed as such on the insurance policy so that claims pay out correctly in the event of an accident.

Lease or own, Quote Finder’s car insurance calculator is a fast, reliable and accurate source of car insurance premium estimates.

About the Author: Robert Davis

He is an insurance content professional with vast knowledge and a special aptitude and interest in imparting insurance education. He has authored many articles on insurance.

Leave A Comment

We’re Here To Help You Save $

Get Multiple Estimates From Top Canadian Insurers Online & Choose The Best Plan For You.

Compare Free Quotes