Leasing a vehicle can be a fantastic way to get your hands behind the wheel of the latest model. However, when it comes to insuring a leased vehicle, there are some important considerations to bear in mind. Below, we’ll set out the key points you need to know to ensure you’re adequately protected while driving your leased car on UK roads.
- You Must Take Out Comprehensive Insurance
When leasing a vehicle, most dealers will require you to take out a fully comprehensive insurance policy. This type of insurance goes beyond the minimum legal requirements and provides comprehensive protection for both your leased car and third-party property. Here’s what you should know:
- Repair Costs: Comprehensive insurance covers the full cost of repairing any damage to your leased vehicle, whether it’s due to an accident, theft, or vandalism.
- Third-Party Liability: It also includes coverage for damage to other people’s property or injuries caused by your vehicle.
N.B. If you find some of the insurance terminology a little confusing or you are trying to understand what some of the jargon in an insurance document actually means, check out: Car Insurance Terminology
- Inform Your Insurance Provider
When setting up your insurance policy, make sure to provide your insurance provider with the following details:
- The hirer obtaining finance (that’s you) must be listed as the main policyholder on the insurance certificate.
- Clearly indicate that the vehicle is a leased vehicle.
- Specify that the finance provider is the registered owner and keeper of the vehicle.
- When To Take Out Insurance
Timing is essential when insuring your leased vehicle:
Arrange insurance before delivery: Once your leased vehicle arrives at the dealership and all required checks are completed, you’ll be contacted to schedule delivery. At this point, it is important your insurance is in place.
Day of delivery: Your lease vehicle must be insured from the day of delivery and remain covered until the finance provider collects the vehicle.
Proof of insurance: Prior to delivery, provide proof of insurance that includes your name, the vehicle’s registration number, and a coverage date that matches or precedes your delivery date.
- Costs And Considerations
Insuring a vehicle can be expensive, but with some careful planning and research, you can manage your expenses effectively. Here are a few tips to help you save money:
- Shop around: Compare quotes from insurance providers to find the most competitive policies.
- Safe driving: Look for policies that offer discounts for safe driving habits or telematics, as these can help reduce your premiums.
- Choose wisely: Consider leasing a more economical vehicle to keep insurance costs down.
- Who Should Be The Policy Holder
As the hirer obtaining finance, you should be listed as the main policyholder on the insurance certificate. This is important for clarity and ensuring compliance with your leasing agreement.
Leasing a vehicle comes with specific insurance requirements, but by understanding these, you can navigate the process smoothly. Whether you’re looking to take out a comprehensive policy or exploring ways to minimize costs, staying informed will help you enjoy a hassle-free leasing experience.
Remember, while enjoying your leased car, having the appropriate insurance coverage is vital. Drive with peace of mind, knowing you’re protected on the road.
