Nearly all lease deals (both business contract hire and personal contract hire) do not come with insurance, so you have to arrange this yourself and it needs to be valid from the day it’s delivered. Luckily, insuring your lease car is the same as any car. You arrange the insurance yourself and you can go direct to an insurer or use an online comparison site.
Insuring Your Lease Car
When arranging insurance for your lease car, the main things to know are these ones:
1. Vehicle details
Because all lease cars are brand new, chances are your registration will not pull through your vehicle details until a couple of days after delivery. This is because your lease car is not registered until the day it’s delivered and it takes a couple of days for the insurers database to update. So, just give them your vehicle details (which we can give you or you can find on your finance agreement) with your registration, along with the value, and you’re set.
2. Registered owner and keeper
With 99% of leases, the finance company is both the registered owner and keeper. Most insurers know this when your vehicle is leased, but have to ask you none the less, so just let them know. You don’t need to know the name of them either, just letting them know it’s the finance company is fine.
3. Fully comprehensive
For personal and business contract hire, you must insure your lease car under a fully comprehensive policy. However, these days, it’s normally cheaper than going third party, anyway!
4. Policy holder and named drivers
For personal contract hire, the person taking out the lease agreement doesn’t have to be the policy holder in most cases, being a named driver on the policy is enough for more finance companies. For business contract hire, it’s down to the business insurance policy as to who can drive. Most business insurance policies cover staff only.