Yes. Every car on the road in the UK legally needs to be insured, even your lease car. Car leasing with insurance is almost the same as insurance when you own the car, however, the biggest difference is that the leasing company will be the registered owner of the car instead of you.
Can You Lease A Car With Insurance Included?
Some of our leasing partners offer various packages with insurance included, for example, insurance being included in the first year of a car lease. However, the more likely scenario is that insurance won’t be automatically included in a lease deal and this will be something you will need to organise yourself.
Is Insurance Free When You Lease A Car?
Insuring your lease car will be similar to insuring a car you own, and unfortunately won’t be free. Paying for the insurance on your lease car will be your responsibility and the biggest things you can do to reduce the price of your insurance is to consider the factors that affect insurance prices. You may want to consider what type of car you are looking to lease as a lower-priced car will be cheaper to insure.
How Much Does It Cost To Insure A Leased Car?
Every insurance policy varies depending on various factors including driving history, the car you are leasing, where you live and how old you are. The average cost of comprehensive car insurance in the UK is £436 annually in 2021, however, this can change as much as 500% depending on these other factors. A common misconception is that car lease insurance is much higher than your own car, but luckily this is a myth and we’re happy to confirm that this isn’t the case. While you still need to let the insurance company know that you are not the registered owner of the lease car, this will have no impact on the price.
Does Car Lease Include Tax And Insurance?
As mentioned previously, leases are unlikely to include insurance and you will organise this separately yourself. The good news is that this means they are responsible for road tax on your car! So, whether you are looking for a personal car lease or a business car lease, you don’t need to worry about the road tax – one of the many benefits of leasing!
GAP Insurance: What Is It And Do I Need It?
A GAP insurance policy will cover the difference between your insurance payment and the full value of your car, should the car be stolen or written off. This means that you won’t need to pay for any costs if your insurance’s pay out doesn’t cover the entire finance, which with leasing would be the remaining finance owed on the lease. You shouldn't be required to get GAP insurance by the funder through our leasing partners, however, for your own peace of mind, it may be something you wish to consider. If you think you may need GAP insurance, feel free to read more about what GAP insurance is and whether you may need it.
Can Someone Else Drive My Leased Car?
Someone else can drive your lease car with insurance. Although, they will need to have permission from the leasing provider named on the lease and be covered by insurance to do so. This insurance can either be a named driver on the insurance of the person taking out the lease or if they have their own comprehensive insurance that states they can drive a leased vehicle that is not in their name. It’s important to remember that the named person on the lease agreement should be the main driver of the lease car. Of course, any other drivers will need a full UK driver’s licence too!
What Happens If I Crash A Leased Car?
Unfortunately, accidents do happen, and this is why finance providers of lease agreements will usually encourage people to get comprehensive insurance with their lease car. You will first need to determine whether the car can be repaired or if it is a write-off. If it can be repaired, then you will organise this with your insurance provider.
You don’t have to submit a claim if you would rather pay for the repairs and avoid affecting your no claims discount, which may be a good idea if the cost of losing the no claims discount is more than the repair cost. However, you will still need to report any accidents to your insurance provider and inform your leasing company.
In this scenario, if your car is written off completely, you should inform the leasing company as soon as possible as they will take this to the finance company who will ask for written confirmation from the insurance provider that the vehicle has been written off before they provide an amount for settling the lease contract.
Can I Return A Damaged Lease Car?
This will depend on the damage itself. If you’ve been involved in an accident and the damage is considerable, you may need to get it repaired at that point. If the damage is minor, then you can decide whether to get it repaired or leave this until the end of the lease.
All leasing companies and their funders follow a set of BVRLA guidelines to decide what is deemed acceptable for fair wear and tear. If you’ve taken care of your car and there is just normal wear and tear, then you will not have to pay anything at the end as the leasing providers expect standard wear and tear. However, if it goes beyond the BVRLA guidelines and isn’t repaired before being returned then you may face a charge.
Although it’s important to remember that your lease car is under warranty, so if there are any mechanical faults with the car that are not your fault then this is covered. You can also opt for an optional maintenance and servicing extra for your lease agreement for some peace of mind if you’d like.
Now that you have read all about insurance with car leasing, feel free to check out our search page to compare the hottest lease deals on the market. Using the filters on the search page, it's really easy to find the hottest deals for you, meaning you can narrow down the results to suit your budget, mileage and other requests and find a deal that suits you best. Once you have found your perfect lease deal, you’re only a few clicks away from making a free enquiry with one of our leasing partners.