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Does Car Leasing Include Insurance?

Last updated: 11/08/2023 | Estimated Reading Time: 6 minutes

If you’re planning a long trip either for business or for pleasure you might be thinking about leasing a car instead of taking your own. Being able to lease a car means you can choose a vehicle that is tailored to your requirements ensuring you have everything you need to make your journey comfortable - but do lease cars include insurance as standard? Knowing the details of your car leasing agreement and what’s included can save you a lot of hassle and potential legal implications should you be involved in an accident. 

After all, as a UK driver, you’ll know that insurance is an absolute must. Not only does having the right cover give you peace of mind should the worst happen, but as a legal requirement, if you’re caught driving without it, you could face serious legal consequences, including a fixed £300 fine, penalty points and even an outright driving ban.

So, if you lease a car does it include insurance? Let’s take a closer look at the facts.

In This Guide:

Is Insurance Included In A Car Lease?

In simple terms, the answer is no. When entering a car lease agreement, insurance does not usually come as standard. However, the real answer to the question - is insurance included when leasing a car - is, that it can be! You’ll find a variety of leasing deals out there, all you have to do is search for a deal that includes the insurance coverage you need, which will ultimately be reflected in the price you pay for your lease. But are there any pros to sourcing a lease contract that includes insurance? 

Is Insurance Included In A Car Lease A Good Investment?

In addition to taking away the legalities and issues you’d face if you were caught driving without insurance, there are plenty of advantages to taking out a car lease agreement that includes insurance, such as: 

  • Get in the car and go: Perhaps you’re against the clock or simply eager to get going, a lease that comes with insurance means you simply add fuel and go, reducing stress and hassle!
  • Better planning of your finances: With insurance on your lease, you’ll pay the same premiums throughout its duration, so you’ll have better control of your finances
  • Less time searching: No searching around for providers or renewals every year  
  • Less inconvenience: Should you be involved in a car accident, your lease provider will likely take control of the repairs process or simply provide you with another vehicle
  • Total peace of mind: You’re fully insured!

Does Leasing A Car Include Insurance With Any Additional Extras?

As a driver, you’ll know that there are various types of car insurance available and that many insurance providers offer additional features that can be included with your policy. So, you’ll be pleased to know that the insurance package that you purchase with a leased vehicle can also come with features that are either included in the price or are available for an additional fee. Some examples of extras include maintenance and servicing, glass damage protection, breakdown assistance, own damage protection, accident management and more.

What If Your Car Lease Has No Insurance Options?

As we mentioned earlier, leased vehicles do not provide insurance as standard and this is something that is requested by you, quoted and then added to your lease package should your provider offer this service. So, is insurance included in a car lease - no. And what if your chosen provider has no insurance options?  

If this is the case, then you’ll need to source insurance yourself ensuring you have the right amount of cover and you’re aware of the options available to you. 

Third-Party Insurance

Third-party insurance is the most basic type of car insurance available. If you are in an accident, third-party insurance will cover the cost of any damage caused to the other vehicle and any injuries sustained to the other driver (assuming you were at fault). This insurance does not cover the cost of damage to your vehicle if you were at fault, or if your vehicle is stolen or damaged by fire. It’s for this reason that third-party insurance isn’t available on leased vehicles. 

Fully Comprehensive

All leasing companies will insist on fully comprehensive coverage for their vehicles. This is so they can protect their assets. If the worst were to happen and you found yourself in an accident then you would be fully covered, this includes damage to other drivers/passengers, other vehicles and any injuries you sustain yourself. 

Does Leasing A Car Include Insurance Premiums That Are More Expensive?

Whether you have to source the insurance yourself or your lease provider can include this within your contract for you, you’ll be pleased to know that insurance premiums for leased vehicles shouldn’t cost you any more than a traditional vehicle/insurance arrangement would, so if you’re hoping to save money by leasing a vehicle the cost of the insurance shouldn’t impact your potential saving.

Is It Possible To Keep These Insurance Costs Down?

Even though you’re planning on insuring a leased vehicle, you’ll be pleased to know that there are ways you can keep your premiums down, including:

  • Choosing your lease vehicle carefully and considering which group your selected vehicle would fall into is a way to keep your premiums as low as possible. Cars within the lowest insurance groups are usually small, with less power and can be fixed easily
  • Shopping around to find the best prices and comparing the latest deals from different providers. Whether you’re shopping for a lease company or specifically for insurance, it's important to search and compare as many providers as possible to find the best price
  • Add an older, more experienced named driver to your lease - this approach is common, especially amongst younger drivers     

Lease A Car With Confidence

When it comes to leasing a vehicle, it's important to ask the right questions, and asking if car leasing includes insurance is crucial to making the right choice and ensuring you’re covered whilst driving. If you’re looking to compare car insurance providers for your leased vehicle, get in touch with Money Expert today.

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