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Leased Car Insurance

Leased Car Insurance from Keith Michaels

  • ANY vehicle owned on a leased basis insured – lease rental or lease purchase
  • Cover provided for both businesses and individuals
  • Introductory bonuses, ex company car discounts, mirrored bonus, etc
  • We are a well established UK based company and do NOT operate a call centre
  • Instant cover available
  • Monthly payment options



Leasing is by the far easiest way for both business and private users to drive a new car with  a lower upfront cost. We believe that insuring your leased car should be just as easy. Whether your car is a personal or business lease, we will find the best insurance policy to suit your requirements using our intricate knowledge of the market to get you the best price.

When You Lease a Car is Insurance Included?

Insurance is not included as part of your monthly lease payments. It is an individual or business’s responsibility to make sure the appropriate full cover is in place when leasing a vehicle.

In most cases you will require fully comprehensive insurance to cover your leased vehicle. This protects you against damage to other drivers and your own property. You may find taking out insurance on a leased vehicle is more expensive than insuring your own vehicle – especially as some car leasing agreements require you take out Guaranteed Asset Protection (GAP) insurance as well. GAP provides enhanced protection for the dealer against damage or theft. Find out more on our GAP Insurance for Leased Cars page.

Audi A5 Lease contract hire car Insurance

Leasing a Car vs Buying a Car

What are the benefits of a leased car over a purchased car? The obvious benefit of course would be that you can drive a nicer car for a cheaper upfront cost. If you’re a business in particular, making a good first impression is important, and luxury, sophisticated cars can be extremely costly to buy and run. With a lease, maintenance costs are lower, the monthly repayments are lower than loan repayments and a 3 year warranty is usually in place to cover the whole/majority of the length of an agreement.

For business leases, mileage expenses can be deducted the same way as a purchased car, however there are agreed mileage limits for leased cars, so you will need to make sure these aren’t exceeded. Whilst wear and tear will affect a purchased car’s resale value, for a leased car, you can land yourself an extra charge when handing it back – so make sure it’s being looked after.

Do I Need Specialist Lease Car Insurance?

Mainstream insurers often struggle to provide suitable policies for lease car insurance, particularly when the owner and keeper of the vehicle differ; this is usually the case if you have entered a personal contract purchase (PCP) or personal contract hire (PCH). If you have entered either we are able to get you the leased car insurance policy that suits your requirements.

Personal Lease Car Insurance

Car lease insurance documentationLeasing is recognised as the best strategy if you plan to upgrade your car every couple of years and would usually consider purchasing a car that doesn’t retain its value. That way the costs associated with the vehicles depreciation are held by the financing company rather than you. The correct insurance policy can save you money at the end of your lease agreement.

When it comes to returning the vehicle you may be required to fork over a hefty sum for any damage deemed to be beyond normal wear and tear. Plus if the vehicle is written off, you risk having to pay the difference between what the car was worth new and its value now. At Keith Michaels we are able to provide Guaranteed Asset Protection (GAP) with our lease car insurance policies, whether it’s a requirement or personal preference, we can get you the quality leased car insurance you deserve.

Business Lease Car Insurance Explained

Business contract hire car insuranceBusiness Contract Hire (BCH) allows businesses to purchase their vehicles with a minimum down payment and an agreed mileage. Insuring leased business cars is a simple process; we can accurately tailor our policies to your businesses requirements either through our company car insurance or fleet car insurance policies.

Keith Michaels strive to give you peace of mind by finding you a lease car insurance policy that is tailored to your personal requirements. We do this by taking into account all the stipulations of your lease contract and personal preferences, providing a policy and service you can be happy with.

Leasing FAQs

What is car leasing?
Car leasing is where you hire a car for a set period of time. It is a popular method of choice for many people who want to drive a brand new vehicle for business use and/or private ownership. Signing a leasing contract means you have to make repayments every month.

Car leasing is available in the form of a Personal Contract Purchase (PCP) finance plan, or a Personal Contract Hire (PCH) finance plan. These differ in terms of monthly payments and deposit amounts.

What do I need to do to set up car leasing insurance?
When applying for car leasing insurance, you need to tell your insurer the following information so they can get a clear idea of your leasing contract and the type of cover you need:
  • The registered owner of the vehicle (this will be the finance company who you have signed a car leasing contract with).
  • The registered keeper (this will be you).

Choosing a specialist insurer is advisable because most mainstream insurance companies may not have the necessary policies in place to cover motorists who do not own the car they are insuring. Remember, you need to be completely honest when declaring your details to your insurer as failing to do so could result in a policy that does not fully cover you for your specific needs. Any claim you make would therefore be refused.

What happens at the end of a car lease?

What happens at the end of your lease depends on the type of lease you have. Typically, you will have the option to hand the car back and take out a lease on a new car, or, you can agree on a price to buy the car which will be in the form of a balloon payment. Sometimes you can also extend your lease on your current car if you wish to keep it for longer.
When handing your lease car back, it will be inspected for wear and tear and have its mileage checked. If wear and tear is not deemed acceptable for its age, you will be charged. Additionally, if you have gone over your agreed mileage you will be charged.

What is the difference between leasing and financing a car?

The main difference between leasing and financing a car is that you will completely own your car at the end of a financing contract. With a leased car, it is not yours to own (unless you have the option to put a balloon payment down at the end of your term). With financing, you will take out a loan to pay for the car, along with interest, whilst you are purely paying to lease the car in a lease contract. There are typically terms in place with leasing that mean you cannot exceed a certain number of miles during the lease term, which you do not have with financing.

What happens if you write off a lease car?
Depending on the severity of the accident, you will need to speak to the finance company in charge of your lease to see whether repairs are viable or if it needs to be completely written off. If it is a write off, your finance company will end the agreement and decide on a settlement figure required to pay it off. This is why the proper insurance is so important.
How can I lower my car leasing insurance costs?

Ensuring maximum safety for your vehicle is one of the best ways to reduce the cost of your car leasing insurance. If you install safety devices such as an alarm system or steering wheel lock, this will show your insurer that you are taking measures to avoid the risk of theft. Parking your car in safe locations, particularly overnight, will also help.

Driving a low insurance group vehicle, that is low in value and performance, will further help to reduce the cost of your premium.

Get a quote from one of our leased car insurance experts today.


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