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As the driver of the leased car will be responsible for arranging and paying for the insurance policy.
When leasing a car, please consider all the costs you will incur monthly before signing an agreement. One of those costs is also insurance, as leased cars do need to be insured before they are drive.
Who is responsible for insuring a leased car?
When leasing a car, the leasing company remains the legal owner of the vehicle, but you as the driver of the leased car will be responsible for arranging and paying for the insurance policy.
Leasing companies will require you take out fully comprehensive cover, which covers the cost of repairing any damage to the vehicle and third-party property in the event of an accident.
Whilst you might have a maintenance agreement as part of your lease, it’s unlikely the insurance costs will be rolled into your monthly payments to the leasing company, so you need to take out a policy yourself.
It you drive a leased car in the UK without insurance, you will be breaking the law, and the terms of your leasing agreement. Make sure you have an insurance policy in place before driving. Failure to do so could result in a penalty, points on your driver's licence, and even prosecution.
The type of insurance you need when leasing a car
When leasing a car, it is important to understand the insurance coverage requirements. In the UK, short term leased cars will not be insured by the leasing company, and you will be responsible.
You will need to take out comprehensive insurance coverage for the leased vehicle. Comprehensive insurance covers damage to the vehicle caused by accidents, theft, fire, and other incidents.
In addition to comprehensive coverage, leasing companies may also require lessees to carry third-party liability insurance. This type of insurance covers any damage or injury caused to third parties in an accident.
It is important to note that the insurance coverage requirements for leased cars can vary depending on the leasing company. Make sure that you carefully review your lease agreement and insurance policy to ensure they meet the required coverage levels.
Factors affecting insurance on leased cars
When it comes to insuring a leased car, there are several factors that can affect the coverage and cost of the insurance policy. In this section, we will discuss some of the most important factors that influence insurance coverage for leased cars.
Lease agreement terms
The terms of the lease agreement can have a significant impact on the insurance coverage required for a leased car. Most lease agreements will have specific requirements for insurance coverage, such as minimum liability limits, comprehensive and collision coverage, and deductibles.
Driver's age and driving record
The age and driving record of the driver can also affect the insurance coverage and cost for a leased car. Younger drivers, particularly those under the age of 25, may be required to pay higher premiums due to their lack of driving experience and higher risk of accidents.
Drivers with a poor driving record, such as a history of accidents or traffic violations, may also face higher insurance costs and reduced coverage options.
Type of car you have leased
The type of car being leased can also affect insurance coverage and cost. High-end luxury cars or sports cars may require higher levels of coverage due to their higher value and increased risk of theft or damage. Similarly, cars with advanced safety features or anti-theft devices may be eligible for discounts on insurance premiums.
If you are currently in the market for a leased car, please view our current short term deals.
