Car leasing and insurance

Taking out a car leasing agreement with insurance combined is a simple way to get behind the wheel of a fully covered vehicle.

To find out more about the lease deals that we offer, contact us to discuss your options.

Why do I need car insurance?

Car insurance is non-negotiable in the UK, and all motorists are required, by law, to insure their vehicles.  

If you are found to be driving without the right protection in place, you could face points on your license, fixed penalty fees, and in some cases, disqualification from driving. The police also have the authority to seize and potentially destroy vehicles that are driven without insurance. 

Do leased cars come with insurance?

Standard car leasing agreements don't come with vehicle insurance, this is something that needs to be added and quoted for.  

Policies differ widely in terms of what they cover you for, so it's important to understand your options. 

What are the different types of insurance for leased cars?

Insurance is designed to protect you, your passengers, and other road users if accidents happen on the road.  As third party and third party fire and theft policies only provide cover for other parties involved in an accident with you, but not yourself, they are not suited to lease vehicles.   

Lease car drivers need comprehensive insurance cover. Comprehensive insurance provides the highest level of protection and has several important benefits, including covering you for any damage caused to your vehicle, and for driving vehicles that you don't own. 

Comprehensive insurance can cost a little more than other policies, but it gives you peace of mind that your leased vehicle is covered in all eventualities. As there are many different policies and add-ons available, it's important to always read the small print to make sure that the policy you choose meets your needs.  

Here are some things to look out for:  

• Check the excess - The excess is the amount you will have to pay when you make a claim. It's then refunded if you're found to not be at fault. You pay the excess upfront to get a claim started – do the maths and work out whether you could afford to pay the excess on a big claim should the worst happen.  

• Restrictions – As there may be mileage limits, check your policy carefully. In some cases, breaking the mileage limit means driving with invalid insurance. This could be problematic in the event of an accident or if your car is stolen.  

• Premium - This is the cost of the policy. You can usually choose to make monthly payments or pay once a year. Some insurance companies offer a discount for paying the annual charge upfront. 

Your premium is decided by the value of the car, the location of your activities, your assumed risk group and your insurance/driving history.

• Warranty cover - A warranty or maintenance package will often cover you for accidental damage or repairs and replacements. Make sure you check what's covered. Good warranty cover can often mean saving hundreds or even thousands of pounds.