Car Leasing with Insurance in Canada

When it comes to renting a vehicle, either for a long or short period, it is a good idea to evaluate the insurance options. Shit happens, and the law requires everyone to be covered. So, if you are considering the alternatives for car leasing with insurance in Canada, then stick together with me for the next 6 minutes.

Car Leasing is a Long-Term Commitment

When you lease a car, let's say, for 310CAD/month, you will end up paying, on average about 10CAD/day if we average all months to have 31 days. 10CAD/day for a car isn't too much, but it is a price attached to a significant commitment: the lease contract term. The longer the time, the cheaper the daily basis.

If you go with Alamo, Enterprise, Hertz... 10CAD/month will sound ridiculous, as the cheapest daily cost you can find will average 30 - 40CAD for the smallest and most compact vehicles. But these are intended to be rented for a short period. You get the idea.

The same occurs with the insurance costs. If you get the rental agency insurance price, it will average 10 - 15CAD per day (on top of the vehicle cost). Then, if you get your own auto insurance, you will end up paying a way lower amount. Basically, it all depends on your term commitment and, obviously, your term will be determined by your purpose.

Long-Term: Car Leasing without Insurance

The best affordable way to do a long-term car leasing in Canada, from the insurance perspective, is keeping the insurance separated from the contract. Dealerships will try to sell you sometimes insurance from a partner or from a close provider, but you should always shop for your own insurance.

Keep your bills separated. Vehicle leasing fixed cost and insurance costs. Car leasing with insurance, or more explicitly: with coverage included, is not a good idea at all for a long-term leasing contract if it is ever offered to you. 

Short-Term: The Turo "Way"

On the other hand, when it comes to short-term, I would always encourage you to go with Turo. Turo is the new "Airbnb" for car rental. It has grown viral, thousands of people rent their cars there, and it is widely used all across the world. And there is a key factor: insurance is included. Up to 2 million dollars, civil liability is covered by Turo for both the driver and the car owner. 

Additionally, Turo offers:

  • Local Pickup: you can just go and get the keys vehicle from the owner.
  • City Delivery: for an additional fee, the vehicle can be delivered anywhere.
  • Airport Delivery: the same as the City delivery, but way more convenient for travelers who just want to skip the rental counter and later return it on a different location (or at the airport itself).

Car Leasing with Insurance in Canada: Turo

Turo has thousands of available vehicles for short-term leasing with insurance in Canada.

I've used it multiple times in North America, and it is very convenient. It's been a while since I stopped shopping for prices on Kayak for rental, as, in the end, I can drive a high-end vehicle with the same amount of money than a mainstream one. As same as with Airbnb, you should rely on the top reviewed cars, the ones with most completed trips and the most popular owners.

You can create a Turo account today and save $25 on your first trip.

About the author

Jorge Diaz is a passionate car lover, winter driver & Software Engineer. For the last 10 years, he has built Online Solutions used by more than 5,000 companies across the globe. He founded LeaseCosts in 2016 with the purpose of simplifying and helping Canadians to better understand the complex market of car leasing in Canada. You can connect with him at

Jorge is also the author of Car Leasing Done Right: A Canadian Guide for Understanding & Optimizing Vehicle Leasing Costs, released on Nov. 5th, 2021. It is available at