Is insurance included in a car lease?

As you hopefully know, insurance is essential for drivers to take their car on the road. This means that whether it’s included in a car lease or not, it has to be obtained. However, in the pursuit of getting a good deal on a car, the inclusion of insurance in the lease can be a significant factor.

So, what’s the answer? Find out below.

What’s included in a car leasing agreement?

Taking out a car lease comes with a number of benefits designed to give you a better deal. The first of these is road tax, which is included in the total cost of the lease. The finance company is the vehicle’s registered keeper, so certain responsibilities lie with them. Lease cars also come with a full manufacturer’s warranty. This provides peace of mind to drivers without adding anything to the cost of the lease.

There can be many add-ons available for car leases, such as maintenance, breakdown cover, lease car servicing, and insurance. Although some providers may offer combined packages that incorporate these considerations, they aren’t typically included as standard. You can use our simple search function to browse our range of rental deals relevant to you.

Do I need insurance for a leased car?

Oftentimes, a car leasing agreement will not include insurance. This means you will have to get insurance cover yourself. Many finance companies will have policies in place that make it clear the insurance requirements must be met before the car can be delivered.

For car leased for personal use, the main policy holder should be the same person who has signed the lease agreement. For a business car lease, the insurance should feature either the company name or the name of the director. Of course, any lease car insurance policies will not apply to individuals that don’t meet the legal requirements. For instance, if their driving license is invalid.

What type of insurance is needed for a car lease?

Regardless of the lease and car type, you will need a fully comprehensive insurance policy. It applies for even short leases to rent a car for a month. This offers cover for:

Accidental damage inflictedon the lease car or someone else’s vehicle.
Damage to another person’s property.
Personal injury and injury to other drivers.
Damage to personal property.

Finance companies want reassurance of compensation as they are the owners of the car during the lease. In the event the car is written off, the insurance provider will compensate you for the car’s current value. This can be contributed to repaying the leasing company; however, it might not cover all the costs.

GAP insurance

A further layer of cover is General Asset protection (GAP) insurance. This can be applied on top of an existing policy to provide full cover if the lease car is stolen or written off entirely. A GAP insurance policy means you won’t have to pay the lender any remaining debt out of your own pocket.

Quality car hire in Durham

Croxdale rental is very flexible when it comes to car finance solutions. This is because we recognise that everyone has different needs and budgets to work from. Leasing a car is designed to be a stress-free process. We make sure this rings true by giving expert advice on insurance policies. This guarantees you’re covered even in the worst-case scenarios. Contact us today and a member of our friendly team will point you in the right direction.

Whatever your question or feedback we are here to help.
So please feel free to contact us.

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Company Info

A167 Croxdale Durham County Durham DH6 5HS

Head Office: Croxdale Service Station LTD A167 Croxdale Durham County Durham DH6 5HS

Reg. Company Number: 913346

VAT Reg. No. GB176008861

Financial Disclosure

Croxdale Service Station Limited is an Appointed Representative of Automotive Compliance Ltd, who is authorised and regulated by the Financial Conduct Authority (FCA No 497010).

Automotive Compliance Ltd’s permissions as a Principal Firm allows Croxdale Service Station Limited to act as a credit broker, not as a lender, for the introduction to a limited number of lenders.

We can introduce you to a selected panel of lenders, which includes manufacturer lenders linked directly to the franchises that we represent. An introduction to a lender does not amount to independent financial advice and we act as their agent for this introduction. Our approach is to introduce you first to the manufacturer lender linked directly to the particular franchise you are purchasing your vehicle from, who are usually able to offer the best available package for you, taking into account both interest rates and other contributions. If they are unable to make you an offer of finance, we then seek to introduce you to whichever of the other lenders on our panel is able to make the next best offer of finance for you. Our aim is to secure the best deal you are eligible for from our panel of lenders. Lenders will pay a fixed commission to us for introducing you to them, calculated by reference to the vehicle model or amount you borrow. Different lenders may pay different commissions for such introductions, and manufacturer lenders linked directly to the franchises that we represent may also provide preferential rates to us for the funding of our vehicle stock and also provide financial support for our training and marketing. But any such amounts they and other lenders pay us will not affect the amounts you pay under your finance agreement, all of which are set by the lender concerned. If you ask us what the amount of commission is, we will tell you in good time before the Finance agreement is executed. All finance applications are subject to status, terms and conditions apply, UK residents only, 18’s or over. Guarantees may be required.