Understanding Insurance in Car Leasing: A Detailed Guide for Businesses
Silverstone Leasing

The Role of Insurance in Car Leasing: A Comprehensive Guide

In the world of car leasing, insurance plays a crucial role. Whether you're a small local business or a large national corporation, understanding the ins and outs of insurance in car leasing is vital to ensuring smooth and trouble-free motoring.

car insurance

The Importance of Insurance in Car Leasing

Insurance is not just an option when leasing a car - it's a necessity. Leasing companies require customers to have a fully comprehensive insurance policy in place for the duration of the lease agreement. This is to protect their investment in the vehicle.

"Having adequate car insurance not only safeguards the leasing company's investment but also provides you, the lessee, with peace of mind."

It's important to note that the insurance cost is typically not included in the monthly lease payments. Therefore, it is an additional expense that businesses must consider when considering leasing.

Types of Insurance in Car Leasing

In the context of car leasing, there are a few types of insurance that businesses should be aware of:

  1. Fully Comprehensive Car Insurance: This is the minimum level of coverage required by leasing companies. It covers damage to your vehicle and the other driver's vehicle in the event of an accident, regardless of who is at fault.

  2. Gap Insurance: This covers the difference between the car's market value at the time of a total loss claim and the amount still owed to the leasing company. While not mandatory, it's worth considering for added financial protection.

  3. Lease Excess Wear and Tear Coverage: This type of insurance covers costs incurred at the lease's end due to excessive wear and tear.

How to Get Car Lease Insurance

Obtaining car lease insurance is similar to getting car insurance for a purchased vehicle. You can shop for quotes from various insurance companies or use comparison websites to find the best deal.

When getting a quote, let the insurance company know the car will be leased and not owned. This is because leasing companies are often registered as the legal owners of the leased vehicles.

Car Lease Insurance and Business Contract Hire

In the case of Business Contract Hire (BCH), the company leasing the car is responsible for arranging the insurance in the company's name or an authorised driver's name.

At Silverstone Leasing, we work with many brands, including BMW, Audi, Mercedes-Benz, and Volkswagen, to provide a vast selection of vehicles suitable for various business needs. Whether your business requires a single car or a fleet, we can help you find the right vehicle and lease arrangement.

Insurance and Multibrand Leasing

As a multi-brand leasing broker, we at Silverstone Leasing offer various vehicles from various manufacturers. Whether you're interested in leasing a luxury sedan from Mercedes-Benz, a reliable city car from Volkswagen, or an eco-friendly electric vehicle from Nissan, we've got you covered.

"Regardless of the brand or type of vehicle you choose to lease, having the right insurance in place is crucial."

It's worth noting that the insurance cost can vary depending on the make and model of the vehicle. High-end cars like BMW, Audi, and Mercedes-Benz may carry higher insurance premiums than more economical brands like Ford or Vauxhall. This is something to remember when deciding on the type of car to lease for your business.

car insurance silverstone leasing

Nationwide Car Leasing and Insurance

At Silverstone Leasing, we offer nationwide car leasing, making it possible for businesses all over the UK to lease a vehicle with us. However, it's essential to note that the cost of car insurance can vary depending on the location. For instance, car insurance premiums are higher in large cities than in rural areas.

"Insurance providers consider several factors when calculating premiums, including the car's make and model, driver's age and driving history, as well as the location."

Hence, as a business, while considering car leasing, it's vital to factor in these variables when budgeting for insurance.

Wrapping Up

Understanding the role of insurance in car leasing is crucial for businesses. While it might seem like an additional hassle and expense, it is an essential part of leasing that protects your business, the leasing company, and the vehicle itself.

At Silverstone Leasing, we understand that every business has unique needs and preferences. Whether you're a local business in Northampton or a national corporation across the UK, we are dedicated to providing you with the best multi-brand car leasing solutions tailored to your business needs.

Please don't hesitate to contact us if you have further questions or need more car leasing and insurance guidance. We're always here to help you navigate your car leasing journey.

Please note: This guide provides general information about insurance in car leasing. Specific details may vary depending on the insurance provider and the leasing agreement. Before finalising your policy, please read the contract carefully and discuss it with your chosen insurance provider.

Insurance in Car Leasing FAQs

Can I use my own insurance for a leased car?

    Yes, you can use your own insurance for a leased car. However, it must be a fully comprehensive insurance policy, and the leasing company should be listed as the registered owner and keeper of the vehicle.

Who is responsible for insuring a leased car?

    The responsibility of insuring a leased car falls to the lessee (the person or company leasing the car). The insurance policy must be in the name of the company or an authorised driver.

What happens if a leased car is written off and the insurance payout doesn't cover the outstanding finance?

    This is where Gap Insurance comes into play. Gap Insurance covers the difference between the insurance payout (market value of the car) and the outstanding finance owed to the leasing company. While not mandatory, it can provide financial protection in such situations.

Can insurance be included in the lease contract?

    Silverstone Leasing offers a Fuel & Go leasing package that includes insurance, maintenance, breakdown cover, and more in a simple monthly payment. This can be a convenient option for businesses seeking an all-inclusive leasing solution.

Special Offers

In stock Top deal Metallic Paint Included

SUZUKI SWIFT HATCHBACK

1.2 Dualjet 83 12V Hybrid SZ-T 5dr Auto

£209.63 Per Month (inc VAT)

£1,886.67Initial Rental

  • 48 months
  • 5,000.00 miles pa

£174.69 Per Month (excl VAT)

£1,572.21 + VATInitial Rental

  • 48 months
  • 5,000.00 miles pa
  • 48 month term
  • 5000 miles per annum
In stock Top deal

AUDI A3 SPORTBACK

40 TFSI e S Line 5dr S Tronic

£344.45 Per Month (inc VAT)

£3,100.05Initial Rental

  • 48 months
  • 5,000.00 miles pa

£287.04 Per Month (excl VAT)

£2,583.36 + VATInitial Rental

  • 48 months
  • 5,000.00 miles pa
  • 48 month term
  • 5000 miles per annum
In stock Top deal

MAZDA CX-60 ESTATE

2.5 PHEV Exclusive Line 5dr Auto [Comfort Pack]

£496.91 Per Month (inc VAT)

£4,472.19Initial Rental

  • 48 months
  • 5,000.00 miles pa

£450.65 Per Month (excl VAT)

£4,055.85 + VATInitial Rental

  • 60 months
  • 5,000.00 miles pa
  • 60 month term
  • 5000 miles per annum
In stock Top deal

TESLA MODEL Y HATCHBACK

Long Range AWD 5dr Auto

£543.68 Per Month (inc VAT)

£4,893.12Initial Rental

  • 48 months
  • 5,000.00 miles pa

£453.06 Per Month (excl VAT)

£4,077.54 + VATInitial Rental

  • 48 months
  • 5,000.00 miles pa
  • 48 month term
  • 5000 miles per annum
In stock Top deal

TESLA MODEL Y HATCHBACK

Performance AWD 5dr Auto

£649.75 Per Month (inc VAT)

£5,847.75Initial Rental

  • 48 months
  • 5,000.00 miles pa

£541.46 Per Month (excl VAT)

£4,873.14 + VATInitial Rental

  • 48 months
  • 5,000.00 miles pa
  • 48 month term
  • 5000 miles per annum
Top deal

PORSCHE MACAN ELECTRIC ESTATE

300kW 4 100kWh 5dr Auto

£899.46 Per Month (inc VAT)

£8,095.14Initial Rental

  • 60 months
  • 5,000.00 miles pa

£749.55 Per Month (excl VAT)

£6,745.95 + VATInitial Rental

  • 60 months
  • 5,000.00 miles pa
  • 60 month term
  • 5000 miles per annum
Top deal

SKODA ENYAQ ESTATE

210kW 85x Sportline Plus 82kWh 4x4 5dr Auto

£560.59 Per Month (inc VAT)

£5,045.31Initial Rental

  • 60 months
  • 5,000.00 miles pa

£467.16 Per Month (excl VAT)

£4,204.44 + VATInitial Rental

  • 60 months
  • 5,000.00 miles pa
  • 60 month term
  • 5000 miles per annum
Top deal

KIA SPORTAGE ESTATE

1.6T GDi ISG GT-Line 5dr

£333.05 Per Month (inc VAT)

£2,997.45Initial Rental

  • 48 months
  • 5,000.00 miles pa

£277.54 Per Month (excl VAT)

£2,497.86 + VATInitial Rental

  • 48 months
  • 5,000.00 miles pa
  • 48 month term
  • 5000 miles per annum
In stock Top deal

MG MOTOR UK ZS HATCHBACK

1.0T GDi Exclusive 5dr DCT

£313.70 Per Month (inc VAT)

£2,823.30Initial Rental

  • 48 months
  • 5,000.00 miles pa

£261.42 Per Month (excl VAT)

£2,352.78 + VATInitial Rental

  • 48 months
  • 5,000.00 miles pa
  • 48 month term
  • 5000 miles per annum
Top deal Metallic Paint Included

VOLKSWAGEN TIGUAN ALLSPACE ESTATE

1.5 TSI R-Line 5dr DSG

£444.50 Per Month (inc VAT)

£4,000.50Initial Rental

  • 60 months
  • 5,000.00 miles pa

£370.42 Per Month (excl VAT)

£3,333.78 + VATInitial Rental

  • 60 months
  • 5,000.00 miles pa
  • 60 month term
  • 5000 miles per annum
In stock Top deal

TESLA MODEL 3 SALOON

Performance AWD 4dr Auto

£880.75 Per Month (inc VAT)

£7,926.77Initial Rental

  • 48 months
  • 5,000.00 miles pa

£733.96 Per Month (excl VAT)

£6,605.64 + VATInitial Rental

  • 48 months
  • 5,000.00 miles pa
  • 48 month term
  • 5000 miles per annum
In stock Top deal

VOLKSWAGEN GOLF HATCHBACK

2.0 TSI GTI 5dr DSG

£414.84 Per Month (inc VAT)

£3,733.56Initial Rental

  • 48 months
  • 5,000.00 miles pa

£345.70 Per Month (excl VAT)

£3,111.30 + VATInitial Rental

  • 48 months
  • 5,000.00 miles pa
  • 48 month term
  • 5000 miles per annum