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Leasing and car insurance: what you need to know
Are you considering leasing a car? Then you’ll need to know the rules about insuring a leased vehicle. Comparis explains.
03.09.2024
iStock/Artem Zakharov
1. What car insurance do I need when leasing?
If you lease a car, you’ll need comprehensive insurance cover:
In the vast majority of cases, full casco insurance is required when leasing. Full casco insurance is a combination of partial casco and collision casco insurance.
As is the case for all cars, liability insurance is compulsory when leasing.
Tip: Please refer to the leasing contract to find out whether you need to take out any additional cover.
2. What applies to car insurance for leased cars?
As a lessee, you are usually less free to choose car insurance than you would be with a vehicle that belongs to you.
When taking out a new insurance policy, take note of the specifications of the leasing company. They apply for the entire lease term and serve as a form of security for the lender.
Insurance for leased cars: 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 what is known as the replacement value supplement. This is because vehicles lose value over time. This additional cover protects the leasing company against such losses.
With some leasing providers, parking damage cover is required.
3. Insuring a leased car with the dealer: is it worth it?
Many car dealers offer insurance products through partner insurance products. You also have the option of taking out insurance yourself.
These are the possible pros and cons of the two options:
| Option | Pros | Cons |
|---|---|---|
| Insurance taken out through the car dealer |
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| Organizing your own insurance |
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Bonus protection and parking damage insurance: the small print
Read the contract carefully before signing it. The insurance benefits vary considerably in the small print.
Many insurers use a bonus/minus system with bonus levels. The benefits and cost effects vary greatly.
Depending on the leasing deal, parking damage insurance may be mandatory. There are restrictions depending on the provider. For instance, maximum cover per year and maximum compensation per claim are common.
4. Can I change insurance after a claim?
Yes, you can switch car insurance after a claim. A lease contract has no influence over your right to cancel a policy. You have 14 days after the claim has been settled to submit your notice of termination.
You must notify your leasing provider of the change of insurance. Tell the provider the new insurance company and your new policy number, and send them a copy of your vehicle registration document.
5. Lease or personal loan?
Leasing is not always the best way to finance a car. If purchasing the vehicle outright is out of the question, a personal loan may also be a possible 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
