Insuring Your Leased Vehicle
As standard insurance is not included in the monthly repayments for a car leasing contract, it is the responsibility of the individual or business leasing the vehicle to arrange insurance – similar to if you were purchasing a car on finance.
How do I go about setting up insurance for my leased car?
When Insuring Your Leased Vehicle your new lease car you simply need to inform your insurer of this fact. If you don’t it can cause confusion with some insurance providers as their system is set up on the assumption that you own the car you’re getting a quote on. It shouldn’t make a difference to the price but make sure they know from the start.
We recommend Confused.com for getting the lowest insurance premiums for Insuring Your Leased Vehicle car. They compare up to 129 providers in order to get the very lowest price for your exact needs. If you’re thinking about leasing a car on our website and want to get an idea of how much it would cost to insure, Confused is a great place to get an idea of your best pricing!
Tips for Lowering Your Insurance Premiums
Car insurance premiums can be costly and are something that almost everybody begrudges paying. However with a little know-how you can make considerable savings on your insurance payments and smash that standard first quote out of the park. See some helpful tips below:
1. Be mindful of a car’s insurance group. Generally as a rule of thumb, the less valuable a vehicle is the lower it’s insurance premium will be. However, don’t assume that just because one model is cheaper or more expensive, that its insurance premium will follow the same pattern. Each car is assigned an insurance group number (the lowest being 1 and highest being 50) which depicts the cost of insuring the vehicle.
2. Put an additional driver on the policy. It may seem strange but adding an additional driver (or drivers) can often bring down the cost of your policy. Additional drivers can spread the risk of the policy in the eyes of insurers; and if the additional driver is seen as lower risk than you, then the price will almost certainly drop. Things like age, endorsements on licence, job and driving experience all play a part in how insurers evaluate the risk of an individual so keep this in mind. Insuring Your Leased Vehicle
3. Don’t just stick to comparison sites. Insurance comparison sites are great for quickly comparing quotes but not all insurance providers are listed on these sites. Companies such as Direct Line only operate via their own channels and so you could be missing out on the best deal if you don’t check these independent companies when Insuring Your Leased Vehicle
4. Try different parking locations. Where your car is parked makes a big difference to the cost of your insurance as this directly correlates with the risk of vandalism and theft. In most cases, cars parked in a garage or driveway will have the cheapest insurance price, but there are rare circumstances where street parking will actually turn out cheaper. Therefore it’s worth checking the price for multiple parking locations on your quote requests when Insuring Your Leased Vehicle .
5. Don’t make claims for minor incidents. The no claims bonus is one of the most powerful influences when it comes to lowering your car insurance premiums. Therefore making a claim for minor damages which cost only marginally more than your excess will do more damage than good in the long run. Only claim on your insurance for major damages and your monthly payments should keep getting lower over time.
6. Pay yearly if possible. Paying for your insurance in 12 month blocks can cut a large chunk off of the overall cost of your plan. Therefore if you’ve got the cash to pay your insurance in a lump sum it will usually save you money overall when Insuring Your Leased Vehicle
7. Third-party insurance isn’t always cheaper. Although logic would conclude that third-party party insurance is always cheaper this isn’t necessarily the case. Some sources suggest that this is due to the risk associated with those who choose third-party party insurance. Other sources claim it is due to the fact that third-party party can cause unexpected costs for the insurance company. As the policy holder will usually wait for the other party to claim via their insurance, rather than inform their own insurers of a crash/incident. Either way it’s best to not assume that third-party party is automatically the cheapest.
8. Take a higher excess amount. The amount you’re willing to pay in the event of a claim can also have a noticeable impact on your monthly repayments. The higher the excess you’re willing to outlay in the event of making a claim, the lower your monthly price will be. It’s a bit of a balancing act so finding a good in between point is probably best for most drivers when Insuring Your Leased Vehicle
9. Have a black box fitted. Certain insurers give discounts to those who drive more carefully; this can be monitored via a telematics device. Such a device measures the speed at which you travel, vehicle handling and how aggressively you drive. Over time, reliable drivers can see large reductions in their premiums with a black box insurance policy when Insuring Your Leased Vehicle
Still Have Questions about Insuring Your Leased Vehicle
If you still have any questions about the car leasing process, or wish clarification on car leasing insurance, don’t hesitate to get in touch. One of our helpful advisors will be more than happy to offer assistance.
Insuring Your Leased Vehicle