How to insure a lease car
Just like any other vehicle on the road, lease cars have to be insured by law, and it’s rare for cover to be included with the lease. That means you’re responsible for getting insurance before getting behind the wheel.
Key points
- Lease cars must be insured by law and cover is rarely included with the lease. You are responsible for arranging insurance before you drive the car.
- Standard car insurance usually covers lease cars, and most providers will ask for the policy to be in the name of the primary driver named in the lease contract. The application process is similar to insuring any other vehicle.
- Insurance policies typically run for at least a year, even if your lease is shorter. Ending a policy early may mean paying a cancellation fee.
- You must have at least third party cover by law, and many leasing companies require a higher level such as comprehensive cover. It is important to check your lease contract before choosing your cover level.
Luckily, covering a lease car isn’t so different from insuring a car you own, you can still use our standard cover and you won't need specialist insurance.
How do I insure a lease car?
If you have a lease car, providers may ask you to insure it under the name of the primary driver named in the contract. For a personal lease, that means the name of the person who drives the car, and if you’re leasing on behalf of a company, it means the name of the business.
That aside, the application process for a lease car should be similar to that for any other vehicle. You’ll need to fill out information on areas like your own driving history and expected yearly mileage and you can usually choose different cover options based on your needs and preferences.
Insuring a company car?
You might want to check out our Business Vehicle and Van Insurance.
How long does car insurance last?
Some leasing companies now offer shorter, more flexible leases. If you have a short‑term lease (a few weeks or months), most insurers will still cover you for leased vehicles (rather than hired cars). However, insurance policy terms typically last for at least a year, although short-term insurance is also an option. And if you need to end your policy before this year is up – even if it’s just because your lease expires – you’ll often have to pay a cancellation fee. So, it’s best to check before signing up.
What level of cover do I need?
You don't need special lease insurance, standard car insurance will usually cover your needs. Every driver on the road needs to have third party cover as a minimum. If you cause an accident, this covers you for injury to other people (including your passengers), or damage to other cars and property. However, it doesn’t cover you or your vehicle.
Beyond the legal third-party cover, your cover level will depend on what you need and anything laid out in your lease contract. You'll need to choose what level of cover is suitable for you, and your lease.
Most insurers offer at least two types of cover – one based on the legal minimum third party policy and another called comprehensive.
Many leasing companies will require you to have comprehensive cover, rather than just the minimum third‑party cover, so be sure to check your contract before you apply.
What’s included in our car insurance, which can cover your lease car?
Our Comprehensive Car Insurance goes even further, with cover to repair damage to your vehicle following an accident and cover to drive someone else’s car if you’re over 25. Cancellation fees may apply. Limitations and exclusions apply.
If you’d like to find out more, take a trip over to our car insurance page.
What do I need to get lease car insurance?
Car insurance policies require you to have a valid driving license, live permanently in the UK, and be under a certain age. Many insurers also consider more specific factors like your driving history, and your vehicle’s age and value.
Will I have to pay excess?
As with other types of cover, car insurance typically involves an excess – the amount you have to pay towards the total cost of a claim prior to the insurance company paying out.
With us, you’ll be able to see the excesses and any other costs to insure a lease car before you buy your policy.
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