Insuring Your Leased Vehicle
Regardless of whether you lease or buy a vehicle, insurance is a must-have cost and often more expensive than the lease itself as leased vehicles must be insured on a fully comprehensive insurance policy.
Here at Vanarama, we get asked a lot of questions about the insurance of a leased vehicle. So, we put together a list of the most frequently asked questions on insuring a leased vehicle.
Do I pay for the insurance of a leased vehicle?
When leasing a vehicle, you are still responsible for insuring it and, therefore, the one that is responsible for paying for the cover. Leasing from Vanarama already includes many benefits including free and fast delivery, road tax and Total Lease Care, but insurance is not included in your lease monthly payments.
Vehicle insurance must be fully comprehensive, and the hirer obtaining finance must be the main policyholder or a named driver on the insurance certificate.
You’ll find that some brokers already have relationships with insurance companies, allowing you to insure your vehicle directly through them.
If your vehicle broker can handle your insurance, we recommend asking them for confirmation of FCA compliance, because this will give you the reassurance that your insurance is in safe hands.
Did you know: we now exclusively offer Vanarama customers a premium guarantee on a van and pick up insurance policies, which means the annual cost of your insurance will not change from the day you buy it across the duration lease.
Does leasing affect insurance?
Yes, it does. This is only because the insurance policy must be fully-comp.
Where can I get the cheapest insurance?
We always encourage customers to shop around, but there isn’t a specific place that you can get cheap insurance because there isn’t a ‘one size fits all’ policy.
Each insurance company evaluates risks individually and as a result, they price them differently.
It is also good to bear in mind that going for the cheapest insurance isn’t always the best. So, be sure to read the policy details and compare the different insurance companies before selecting the right one for you.
How do I find a good insurance company?
Much like when you were looking for a vehicle broker, you made sure that you found a reputable one that offered the best choice. The same principle should apply to insurance. We recommend finding one that is:
- Provides reasonable terms and conditions that won’t leave you in a position where, should the worst happen, you cannot claim.
- Offering the right type of insurance for you.
There are many cheap insurance companies out there, but they will not always offer the best policy.
When do I need to insure my leased vehicle by?
When all the checks have been completed, you will be contacted to arrange delivery of your vehicle. It’s at this stage that you can insure your vehicle. You will need to provide proof of insurance before delivery can take place and it must be a fully comp insurance policy. The certificate must show your company name, registration number and needs to be dated before or on the date of your delivery.
Your new vehicle will need to be insured during your entire lease period.
How can I achieve lower insurance rates on my leased vehicle?
We put together a list of the top three things to consider when looking for:
- Compare vehicle insurance groups.
Before choosing your dream vehicle, we recommend checking the vehicle’s insurance group. The more powerful and expensive your vehicle, the more likely it is to be expensive to insure.
- Compare rates between providers.
It’s worth comparing insurance prices online to find the best one for you. However, not all insurance providers are listed in comparison websites and you may miss out on policies and deals that could offer you the protection that is better suited to you.
- Pay annually.
If you can afford it, it may be cheaper to pay your insurance annually. Despite appearing more attractive to spread the cost over 12 months, the added interest charges can increase the rate.
Did you know: Vanarama Insurance offers 0% interest on annualised policies to all van & pick up drivers?