Does Car Leasing Include Insurance?
Table of Contents
Most car leasing deals do not include insurance as standard. When you lease a car in the UK, you’re usually responsible for arranging your own fully comprehensive car insurance for the entire lease term. Some lease providers offer optional insurance packages, but these are the exception, not the rule.
So unless it’s clearly stated, assume insurance isn’t included in your lease.
Key points
What Insurance Do You Need for a Leased Car?
All leased cars must be insured with a fully comprehensive policy. This is because:
- You don’t own the vehicle, it belongs to the lease company
- They need to protect the full value of the car
- Third-party or third-party fire and theft won’t meet leasing requirements
You’ll need to provide proof of insurance before your car is delivered.
When Is Insurance Included in Leasing?
Some specialist lease deals, often called “car lease and insurance packages” bundle insurance into your monthly payment. These deals may include:
- Insurance for a named driver (or multiple drivers)
- Fixed monthly costs
- Maintenance and breakdown cover
- GAP insurance (to cover lease liability if the car is written off)
These packages are typically offered through salary sacrifice schemes, business lease deals, or some personal lease providers.
Always check what’s included before signing.
Things to Watch Out For
- Insurance-included lease deals are often more expensive overall
- You may have less flexibility on the insurer or cover level
- Drivers under 25 may face age restrictions
- Claims could affect your personal no claims bonus, depending on the structure
If you prefer to choose your own insurer, a standard lease with separate insurance may be more cost-effective.
Can I use my own insurance on a leased car?
Yes, in most cases, that’s expected. Just make sure it’s fully comprehensive.
Do business lease cars come with insurance?
Not by default. Some business lease packages include fleet insurance, but this varies by provider.
Is GAP insurance required for leasing?
It’s not legally required, but strongly recommended. It covers the difference between what you owe and what your insurer pays if the car is written off or stolen.
Does leasing affect my insurance premium?
Not directly, but lease cars are often new and high-spec, which may increase your premium.
In Summary
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Most car lease deals do not include insurance, you’ll need to arrange it yourself
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Fully comprehensive cover is required for all lease cars
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Some providers offer bundled insurance, but these are less common and often cost more
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Always check the lease terms carefully to understand what’s included
Compare Fully Comprehensive Car Insurance Quotes
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