What Type Of Insurance Do I Need On A Lease Car?


When you lease a car the insurance for the vehicle is your responsibility and not included in the monthly payments.

The same as if you bought a car outright, your brand new lease car needs to be insured before it can take to the road and a fully comprehensive insurance policy is required when you lease a car.

If you’ve taken out a personal contract hire (PCH) agreement, you as the one signing the agreement must be the main policy holder or ensure you are a named driver on the insurance certificate.

What Type Of Insurance Do I Need On A Lease Car?

Do Car Leases Come With Insurance?


For those taking out a Business Contract Hire (BCH) agreement, the insurance certificate must have the director or company name on it.

Whether the contract is for business or personal use, the finance company remains the registered owner of the car for the duration of your lease term and this must be made known to your insurer when you come to insuring your brand new lease car.

Not informing your insurance company of this fact could cause confusion, as most providers will automatically assume that you own the car. The price of your policy shouldn’t be affected by providing them with this information and in the event of a claim at least they will know how to proceed with the correct information in front of them.

Your brand new lease car will be delivered to you for free on a day that suits you, so it’s important to ensure that you have insurance cover ready. Your lease car must remain insured right up until the day it has been arranged for its return.


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