The Mercedes-Benz A-Class: What can we say other than what a truly amazing piece of automotive engineering.
If you’re looking to lease for the first time then we know there can be a lot of questions and one area that our new Mercedes leasing customers want more information on is about insuring their lease car.
So, we’ve put together this handy article with all the essential info and FAQs to help you understand.
Types of Car Insurance
In the UK there are three main types of car insurance; comprehensive, third party, fire and theft and third party. This allows drivers some choice over the level of cover they get but all drivers legally need to have their vehicle insured, this includes if the vehicle is not in use unless it has been SORN.
Comprehensive Car Insurance
Comprehensive insurance, also known as fully comp insurance, is the highest level of cover that you can get for a vehicle. This will cover any damage to your own vehicle if it is involved in an accident, vandalised or stolen, any injury to you or your passengers as well as damage or injury to third parties and their property.
Third-Party, Fire and Theft Insurance
This is the middle level of cover and will cover any third-party damage or injuries. It will also provide cover for if your vehicle is stolen or damaged by fire but will not cover any damage to your vehicle incurred due to an accident or vandalism.
Third party insurance is the lowest level of cover that you can legally have in the UK. It will cover damage to any third-party vehicle or property and injury to any third-party.
What Kind of Car Insurance Do I Need on a Lease Car?
You will need to get comprehensive car insurance for your new lease car.
This is the highest level of cover and most funders require you to take this out to avoid unnecessary financial burden on their customers should the lease car be damaged or stolen, as they will then be responsible for the cost. Taking out comprehensive insurance not only protects the lease company’s asset but also prevents you from being hit with an unexpected bill.
How to Insure a Lease Car
Insuring a lease car will be very similar to insuring a car that you own yourself there are just a few differences that you need to be aware of.
The main difference is that although you will be driving the car you will not be the registered owner and usually not the registered keeper either. Your insurance provider will need to know this information if you are updating an existing policy. They will usually ask this question when getting a new quote but if not you should mention this.
Lease Car Insurance FAQs
Who’s the registered owner of a lease car?
The lease funder will be the registered owner of the vehicle.
Who’s the registered keeper of a lease car?
Most lease funders will also be the registered keeper of a lease car as well. We will let you know if this is not the case if you take out a new lease with us.
Can I use a comparison site to insure a lease car?
All of our lease cars are brand new vehicles and they will usually not be registered until the day of delivery as the manufacturer’s warranty, MOT due date, and road tax will not be started until the vehicle is registered. Unfortunately, as most comparison websites use the DVLA’s registration database to pull the vehicle’s details you may not always be able to use their sites to find the best insurance quote.
Some sites do allow you to search for a quote based on the vehicle spec without the registration and we can provide all the details needed for this. Alternatively, you will need to take these details to your preferred insurance provider and they will be able to provide you with a quote.
What type of car insurance does a lease car need?
You will need to get comprehensive car insurance for a lease vehicle. Most funders request this as if the vehicle is damaged and you do not have comprehensive insurance then you
Do I need to show proof of insurance for my lease car?
You will not usually be asked to show proof of insurance by ourselves or your lease funder but there are a few occasions when you may need to.
Some funders need to confirm the vehicle is insured to set it live on their system. They will usually be able to do this via the MID database but if it’s on a multivehicle or fleet policy they may ask you for proof of insurance as it may not be showing in their usual checks.
If you are travelling abroad with the vehicle then you may be asked to provide proof of insurance to make sure you have appropriate coverage.
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