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Does car leasing include insurance?

 Published 8th September 2023
General Guides 

As drivers, we are all aware we need to renew our car insurance annually to comply with the law, and if we don't remember, the insurance companies will soon remind us. We also know we must arrange insurance when purchasing a new vehicle before we drive it home, but does car leasing include the insurance?

Whether car leasing includes insurance is dependent on the lease terms and the lease provider and you must ensure you understand your lease, as it is your legal requirement to be insured for a vehicle you are responsible for. Typically, most lease agreements will not include insurance as part of their monthly payment and will require the lessee to obtain insurance that covers the duration of the lease and meets their minimum level of coverage.

The importance of car insurance

Car insurance is not simply insurance for the person who takes out the policy but also offers protection to other road users. For the policyholder, insurance will typically be in place to cover you should you be in an accident. This includes liability cover which will pay for repairs or replacement of another vehicle should you be at fault in an accident.

If you were to be the cause of an accident that wrote off an expensive car, without insurance you could find yourself in court and ultimately paying a hefty fee out of your own pocket. It will also cover any additional costs the innocent party incurs due to the accident such as medical bills, loss of earnings and possible therapy to relieve the trauma.

Car insurance will also protect the policyholder in the same manner. Covering costs incurred to repair or replace your vehicle and loss of earnings while you are on the mend. So, it is important you know whether your car lease does include insurance for the sake of all on the road.

Factors that affect the cost of car insurance

The price of car insurance can vary depending on numerous factors, and it is always advised to shop around to find the best deal for you. Age is a well-known factor that can increase the cost of your insurance premiums quite substantially as drivers under 25 are generally considered a higher risk since they have less experience controlling a vehicle and less experience of numerous situations that could occur on the road.

Your driving history will also come into play when insuring your vehicle as an applicant who has shown a disregard for traffic laws in the past is likely to re-offend and cause problems for other road users - particularly people who have received driving bans in the past. You may also find yourself with higher annual insurance premiums if you have been in accidents, regardless of whether you were the innocent party.

Other factors that affect the annual insurance price you will pay include, your geographic location as inner-city areas are considered a higher risk of accident use to their busy nature and put the vehicle at a greater risk of theft. Annual mileage is another contributing factor to your insurance costs as the more miles you drive each year, the greater opportunity you have to be involved in an accident.

The final main consideration by insurance companies when compiling your annual premium quotation is the vehicle you wish to insure. Luxury brands and sports cars tend to have higher premiums as they are more attractive to thieves and, often require more expensive parts should repairs need to be carried out. The age of the vehicle also has a knock-on effect as the value will decrease and with this, the insurance. However, if the vehicle is of an age where it lacks certain common safety features, you may see the premium increase again.

Keep the costs low with car leasing

Though insurance costs can vary depending on personal circumstances, they do not need to prevent you from being behind the wheel of a quality vehicle. At Gateway2Lease, we pride ourselves on helping customers drive the car they love, and with our fantastic lease deals, you are certain to have enough money left over to cover your insurance premiums. We are a family-run business with over 15 years of experience and the one thing we know is family comes in all shapes and sizes much like drivers and insurance, so if your quotes have left you feeling uninspired, get in touch with us and we will restore your drive!

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