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.
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.
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.
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:
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.
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.
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.