Do I need insurance when leasing a car?

Car Leasing with Insurance

Insurance is not included as standard in the bad credit car finance lease agreement and is therefore your responsibility to arrange a fully comprehensive motor insurance policy. For personal contract hire the main insurance policy holder must be you.  For business hire the car insurance policy must be in your company name.

Please note, as you are leasing the car, CVS will be the registered owner of the vehicle not you. Please make your insurance company aware of this fact as it can sometimes lead to confusion. This should not affect the cost of your insurance premium. You will need to have car insurance for your lease vehicle in place on the day you take delivery of the car.


Our car insurance advice

At CVS, we appreciate insurance premiums can be a costly addition that nobody particularly enjoys paying, especially when you are on a budget. To that end we have put together some tips we hope will you save some money, in addition, we also work closely with insurance brokers who understand our customers’ requirements, and would be more than happy to put you in touch with one of them.


Insurance tips

  • Be mindful of a car’s insurance group. Choose a car you can afford to run – Smaller cars usually mean cheaper car insurance. Each car is assigned an insurance group number (the lowest being 1 and highest being 50) which depicts the cost of insuring the vehicle. The value, type and engine size all play a part, so consider these factors when you take out a lease.
  • Adding an additional driver (or drivers) can often bring down the cost of your policy.  This is especially true if the additional driver is seen as a lower risk than you, this could be down to their age, driving experience or job to name just a few factors, so please bare that in mind.
  • Comparison sites are great for their convenience, but remember not all insurers participate on them, so it’s still worthwhile to shop around in order to find the best deal for you.
  • Security (especially enhanced) always means cheaper car insurance, so make sure you know exactly what alarm or / and immobiliser is fitted to your vehicle, and advise your insurance company accordingly.
  • Certain insurers give discounts to careful drivers; so, ask if you can have a black box fitted. These devices measure speed, handling and generally provide stats on how you drive and reassure the insurance company that you are a competent driver.
  • Consider taking out a higher excess, in a nutshell your excess is a fixed amount you pay if you have to make a claim. So, if you choose an excess amount of £250 and make a claim for £1000, the insurance company will reimburse you the remaining £750.  The higher the excess, the lower your premiums will be, however it is good to get a sensible balance when budgeting for this.
  • Be mindful of making claims for minor incidents. Building up a solid no claims bonus over time, is a great way of keeping your insurance premiums low.
  • Inform your insurer how you intend to use the car, whether it’s for business, pleasure or both and agree a yearly mileage plan.
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