Car Insurance and Leasing A Car - Leasing Myths Debunked

By AllCarLeasing
09-08-2018

In another post in our series of leasing myths debunked we take a look at another myth which completely surprises us every time that people believe it; that insuring a leased car is a hassle or in some cases more expensive than a used car or a car purchased through another type of finance! This is one of the myths that irk us the most at All Car Leasing because in some instances it could wrongly put people off leasing and cost them more money in the long term.

Let's face it - Insuring a vehicle isn’t something anyone wants to do. For those careful drivers out there it may be something they never use or only use once in their life – if you count all those payments and nothing at the end of it that’s a lot of money. When we hear or see comments which are completely fabricated in terms of insuring a leased vehicle that’s when we get really irritated, unfortunately the trend (as with most myths) seems to be that the myths are spread by those who have never leased before or by those who are set to gain from deterring someone from leasing. Whatever the reason, spreading misinformation is bad.

So, here we are with another article debunking some more myths to help those who have never leased understand just how easy and pain free it really is.

Myth 1 – Insuring a leased car is a hassle

The first myth we want to debunk is the myth that insuring a leased car is a hassle or that it takes longer to do so. This is completely untrue. Insuring a leased car takes the same amount of time and is no different to insuring any other car – and why would it? A leased car is no more likely to be stolen or vandalised and the driver is no more like to be in an accident than a non leased car. It doesn't matter either if your leasing privately or through a business

The only difference in the process is when the insurance company asks who the owner of the vehicle is you just need to say the finance company, whoever they may be. They ask this as its important to understand who the car belongs to in the event of a claim.

That’s it, that’s the only difference. Everything else is exactly the same. Myth. Busted.

Not convinced? Try it for yourself by calling two insurance companies about a quote, tell one the vehicle is leased and tell another that you own the car and see for yourself if the conversation is any different.

Myth 2 – Insurance on a leased vehicle is more expensive

Some people believe that insurance companies may charge a premium or that it’s are just more expensive to insure a vehicle on contract hire purely because it's leased. This is completely false and out of the two myths in this guide the one we’re most annoyed about as anyone who believes this myth may have ended up not leasing or in a worst case scenario paid a premium when they shouldn’t.

There is no extra charge of insuring a leased vehicle and if the insurance company mentions a premium it’s time to look elsewhere. There is no good reason to charge someone more for insuring a leased other than to make some extra money from someone who doesn't question what they are told or know any better.

Not convinced? Try it for yourself by calling two insurance companies about a quote, tell one the vehicle is leased and tell another that you own the car and see for yourself if the conversation is any different.

Conclusion

To conclude, insuring a lease vehicle costs no more than takes the same amount of time and effort as any other vehicle and anyone saying otherwise is spreading false information or not the whole story. Do not let insurance woes put you off a car leasing deal – it’s a necessary evil but no more of an evil.

All Car Leasing do not provide insurance, recommend any insurance companies in particular and our deals do not include insurance.