How to Insure a Lease Car

Is insurance included with a lease car?

Typically, your monthly leasing payment covers road tax, warranty, and the vehicle itself, but it does not usually include motor insurance. Therefore, it is generally your responsibility to insure the vehicle. While some leasing companies offer packages that include insurance, this isn’t always the case.

What type of insurance do I need for a lease car?

Most leasing companies require you to have a fully comprehensive insurance policy. Since they are the legal owners of the vehicle during the lease, they need full protection for their asset. A fully comprehensive policy usually covers:

• Accidental Damage to your Vehicle
• Cover for Fire and Theft
• Injuries to Third Parties
• Third Party Vehicle Damages

Additionally, many comprehensive policies include:

• Windscreen repair
• Courtesy car
• Personal Effects

Always check the specific details of your policy as coverage can vary between insurers. Though fully comprehensive insurance may be more expensive than third-party policies, it offers the best protection, ensuring you only pay the excess in case of an accident.

Who should be the policyholder?

The policyholder for leased vehicles should be the same as the name on the leasing agreement whether that’s a personal or business contract. For business leases, the company or a director should be the main policyholder, and the company must provide advise the insurer of anyone who drives the vehicle, unless they have arranged an ‘Any Driver Fleet’ policy.

Can other people drive my lease car?

Yes, other people can drive your lease car but only if they are named drivers on your policy. It’s advisable to add any potential drivers to your policy for full coverage.

How do I pay for my lease car insurance?

You can pay your insurance premium upfront for 12 months or opt for monthly payments. Monthly payments are usually subject to interest, so paying upfront can save you money. However, monthly payments may be more manageable and flexible.

Do all insurance companies cover lease cars?

Most car insurance companies do cover leased cars. The main difference is the name on the V5 registration document. So, it is crucial that you inform your insurer that the leasing company is the owner and registered keeper of the vehicle.

Can I accrue no claims with my lease car?

Absolutely! You can transfer an existing no-claims bonus to your lease car insurance policy and continue to build no-claims while driving your lease car. Where you take a business fleet insurance, your policy tends not to be rated on the conventional no claims bonus model, insurers usually provide a claims experience to understand the risk portfolio of the whole business rather than looking at cars individually.

Does my lease company need to know my insurance details?

Leasing companies typically require proof of fully comprehensive insurance before delivering your vehicle and at each renewal. Ensure your insurance coverage starts when your lease car is due to be delivered to prevent any delays.

Is it more expensive to insure a lease car?

Not necessarily. The cost of insuring a leased car is influenced by many factors and the insurers will analyse your profile before offering their most competitive quotation for review.

What can I do to lower my insurance costs?

Here are some tips to reduce your lease car insurance costs:

• Increase your excess: Voluntarily increasing your excess can lower your policy costs but ensure you can afford this amount if needed.
• Install a black box: Telematics devices monitor driving habits and can lower premiums based on safe driving.
• Utilise Camera Technology: Some insurers offer discounted premiums if your vehicle is fitted with hard-wired camera technology which acts as your witness in the event of a claim.
• Pay annually: Paying your premium annually instead of monthly avoids interest charges and can save money over a lease term.

At AMT Insurance Solutions, we arrange a wide range of motor insurance, personal insurance, and commercial insurance. Get in touch with us today to discuss your requirements.