It’s the letter of the law in the UK that those who lease a vehicle must have sufficient car leasing insurance in place, such as a fully comprehensive lease vehicle insurance policy.
Under any personal contract leasing or personal contract purchase arrangement, you need to be fully insured to drive it. It’s illegal to get behind the wheel of your leased car without a valid policy.
Insuring your leased vehicle is the right thing to do to protect yourself financially at all times. Ultimately, the principles of insuring a leased car are the same as any other vehicle. You’ll still want to shop around for the best deal. However, there are various things to consider that can help you secure the right level of cover at the right price for you and your leased car:
All road vehicles in the UK are now categorised into groups for car insurance purposes. There are 50 different groups, with the vehicles in the highest group (Group 50) deemed the most expensive to insure.
An independent panel of experts from the insurance industry come together to make a collective decision on how to group each vehicle based on a range of factors, including the value of parts, the vehicle’s performance and its safety features.
It’s a good idea to familiarise yourself with these car insurance groups first before setting your heart on a lease vehicle that might be out of your budget.
In some cases, it can save you money on your premiums just by adding another named driver to your policy. The addition of another experienced driver without a history of insurance claims can help spread the risk in the eyes of insurers.
However, be careful when you’re adding younger drivers or those with professions that may be deemed riskier in the eyes of insurers, as this could incur a rise in your lease vehicle insurance, as opposed to a decline.
GAP insurance upholds the value of the car when you leased it as new. That is very important, as most new models will depreciate heavily in value during the first couple of years of use. It’s a sensible policy to have in place should you damage your car beyond repair and the insurance company values it as much lower than it should be. It saves you having to cover the difference.
A ‘black box’ is a telematics device that will monitor how you drive your vehicle in terms of efficiency and safety. These are particularly beneficial for young or newly-qualified drivers.
Some insurers will offer lease vehicle insurance policies on a sliding scale for black-box drivers, reducing premiums as a reward for safe, consistent driving.
The better the security features of your new lease car, the better your chance of reducing your car insurance premiums. Most brand-new models at Rivervale Leasing come with factory-fitted alarms, immobilisers and even tracking devices.
Be sure to make prospective insurers aware of these features when seeking quotations.
Park overnight in a garage if you can, as insurers will view parking a vehicle overnight in a garage as a more secure location than parking on a busy road.
It might be a significant financial commitment, but if it is possible to pay for your lease car insurance in one go, it could save you a bundle of cash. This is because monthly premiums paid via direct debit will incur interest, resulting in you paying more for exactly the same product as others that pay in one lump sum.