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Leasing and car insurance: what you need to know
Are you in the market for a car lease? Then you need to know about the rules of insurance when leasing. Comparis explains.
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1. Which car insurance do I need when leasing?
Full casco insurance is mandatory for leasing in the vast majority of cases. Full casco insurance is a combination of partial casco and collision casco insurance. Third-party liability insurance is compulsory for all car owners in Switzerland. This also applies to leased cars.
2. What applies to car insurance for leased cars?
When it comes to car insurance, you generally have less freedom in choosing the cover when leasing than when the car is yours. When taking out a new insurance policy, observe the specifications of the leasing company. They apply for the entire lease term and serve as security for the lender.
Key points:
How high is the cover? Deals vary depending on the owner and the vehicle.
In the case of leased cars, you usually have to take out cover for the replacement value supplement. This is because vehicles lose value over time. This additional cover protects the leasing company against such losses.
For some lessors, parked car damage coverage is mandatory.
3. Insuring the leased car with the dealer: is it worth it?
Many car dealers offer insurance products through partner insurance. You also have the option of taking out insurance yourself. It is convenient to purchase your insurance directly from your dealer. You usually pay the insurance premium with the leasing rate.
However, this insurance is usually more expensive than if you find car insurance on your own. In addition, you are often less flexible in the choice of coverage via car dealerships. If you take out the insurance through the dealer, we recommend taking out a one-year contract. Good to know: some dealers offer you discounts on the lease payments when you take out the insurance with them.
If you take out car insurance yourself, you have greater freedom in determining the cover. You benefit from lower premiums and can choose the provider freely. Please note: it is essential to state that the car is a leased car – otherwise the service may be reduced in the event of damage.
Parked car damage insurance and bonus protection in the small print
Read the contract carefully before signing it. The insurance benefits vary considerably in the small print. Parked car damage insurance is often subject to limitations: how much cover is provided per year and the maximum compensation per event?
The benefits and costs also vary greatly in the bonus levels. The fewer claims the insurance provider has to settle, the cheaper the premium. The more benefits a policyholder draws, the more expensive the premium. If you take out bonus protection, this will help to avoid premium increases. However, this only applies once per year.
4. Can I change insurance after a claim?
You can switch car insurance after a claim. A lease has no influence over your right of termination.You have 14 days from the date on which the acceptance of the claim is confirmed under the existing insurance policy to submit your notice of termination.
You must notify your lessor of the change of insurance. Send it the name of the new insurance company, your new policy number and a copy of your vehicle registration document. The lessor will then send you a something known as an assignment form for you to sign. This means that you assign any insurance benefits to the leasing company in the event of a write-off.
5. Lease or personal loan?
Leasing is not always the best way to finance a car. If you do not have enough money to buy a new car, a personal loan is a good alternative. Check with Comparis to see whether a lease or a personal loan is the right solution for you.
This article was first published on 01.09.2021
