In the UK by law, if you drive any kind of vehicle on our roads you must have a motor insurance policy in place and this is the case whether you own, rent or lease your vehicle.
If you do lease a car or van, you must take out a fully comprehensive insurance policy.
When you take out a lease contract with Flexed, this does not include insurance, so therefore it’s up to yourself to make sure you have your own insurance on the car or van you lease.
It’s important to remember that you’re required to take out a fully comprehensive insurance policy and that the person leasing the vehicle and obtaining finance has to be the main policy holder shown on the certificate.
Despite insurance not being part of your lease agreement, there are many benefits to leasing a car or van with Flexed, including UK road tax for the duration of your lease term, a full manufacturer’s warranty, breakdown cover, maintenance and 10,000 to 15,000 miles per annum (calculated on a pro-rata daily basis).
Getting Insurance
As soon as your vehicle arrives with us and all the appropriate checks have been made, one of our team will be in touch to provide you with the vehicle registration number for your lease car or van. You can then look around for the best insurance deal.
Insuring your lease car or van – short term leasing with Flexed
Your fully comprehensive insurance policy must start either just before or on the day you take delivery of your lease vehicle and must remain in place right up until your lease contract comes to an end.
You will be required to show proof of insurance before you drive away in your lease vehicle. The insurance certificate must show your name, registration number of your lease vehicle and the date must be before or on the day you take delivery of your lease car or van.
If your lease agreement is for personal use, then the lessee obtaining finance for the vehicle must be the main policy holder on the insurance certificate.
On business lease agreements, the certificate must be either in the company name or a director’s name. However, if the lease vehicle is to be driven by an employee, then a covering letter on company headed paper may be required to confirm that the employee is indeed authorised to drive the lease vehicle.
Whether you lease your car or van for personal use or through your business, it’s the finance company who remain the registered owner and keeper of the lease vehicle for the duration of your lease term and hold the V5C registration certificate (log book).
Another type of insurance popular with leasing is Guaranteed Asset Protection (GAP) insurance. You might want to consider this when you lease a car or van, however this is an optional choice and not a legal requirement.
Basically, GAP insurance covers the difference between the value of the lease car/van (the amount your insurance provider will normally pay out in the event of a total loss or theft) and the amount you still owe to your finance provider for your lease vehicle.
It’s also worth remembering to check the insurance group before deciding which car to lease. A higher priced performance car is more than likely going to be more expensive to insure than a cheaper hatchback suitable for driving around the city.
To help with the cost of insurance, you could consider adding another driver to your policy. This could lower your annual outgoings for insurance but this may depend on the age of the person and how much driving experience they have. Please remember though, that the lessee who obtained finance for the lease vehicle must be the main policy holder on the insurance certificate.
Using comparison websites to compare insurance prices could also help lower your costs and ensure you find the best deal but be aware that not every insurance provider is on these sites, so you might need to do a bit more homework first.
Another way you could save money is by having a ‘black box’ fitted to your lease car, however not all finance providers allow this so you will need to check beforehand to see if permission will be granted.
When taking out a fully comprehensive insurance policy for your lease car or van it might be advisable to pay for your annual cover upfront in one payment rather than by monthly Direct Debit – this could save you money.
Please click here to find out more about our car leasing services and fantastic offers for both Business and Personal customers, or give us a call on 0800 311 8290.
Drop us a quick email to talk@flexed.co.uk or chat with a member of our team NOW using our online ‘We Are Here!’ service – we’ll gladly answer any leasing questions you may have.
