Insuring Your Lease Car – What You Need to Know

So, you’ve sorted your new lease car – nice one. Now there’s just one thing left to tick off the list before it arrives: insurance.

Unlike PCP or HP deals, lease cars don’t come with insurance included, so it’s up to you to get a policy in place. The good news? It works just like insuring any other car. You can use an online comparison site or go direct to an insurer – whichever suits you best.

Here’s a simple breakdown of what you need to know when insuring a lease vehicle.

1. Your vehicle details might not pull through right away

Since lease cars are brand new, the registration might not show up in insurer databases straight away – especially if you're getting quotes before delivery day. That’s because lease cars aren’t officially registered until the day they’re delivered.

If the reg doesn’t work, no stress – just provide:

• The make and model

• The vehicle value (you’ll find this in your finance documents)

• The registration (if you have it already)

We can help with the details if you’re unsure. Once the database updates (usually within 48 hours of delivery), your reg should pull through automatically.

2. Who’s the registered owner and keeper?

This one’s easy: the finance company is both the registered owner and keeper of your lease vehicle – not you.

Most insurers know this when you select “lease car” during the quote process, but they’ll still ask, so just let them know the car is leased and owned by the finance company. You don’t need to give them the company’s name – just flag that it’s a lease and that’s usually enough.

3. You need fully comprehensive insurance

Whether it’s a personal or business lease, your car must be covered by a fully comprehensive policy – this is part of your lease agreement.

These days, fully comp is often the most affordable option anyway, and it gives you the best cover. It protects both you and the lease company if something goes wrong – like an accident, theft, or major damage.

4. Who can be the policyholder?

Here’s where it depends on the type of lease you’ve taken out:

For personal lease cars (PCH):

• The person who took out the lease doesn’t always have to be the main policyholder

• In most cases, it’s fine for someone else (like your partner or parent) to insure the car, as long as the leaseholder is a named driver

That said, it’s always a good idea to double-check with the insurer and your finance company, just to be sure.

For business lease cars (BCH):

• The car is usually insured under the company’s fleet or business insurance policy

• These policies typically cover employees only – so make sure the right people are listed and allowed to drive the car

Final tips

• 🛑 Make sure the policy starts on the day your car is delivered

• 🔁 If your delivery date changes, you may need to adjust your start date

• 📞 We’re happy to help if you need any of the car’s details for the quote

The takeaway

Leasing a car doesn’t make insurance complicated – it just means you need to arrange your own cover and make sure it meets a few key requirements. Stick to fully comp, note that the finance company is the owner/keeper, and you’ll be good to go.

If you’ve got any questions about lease car insurance, or you’re not sure what info you need to give your insurer, just get in touch – we’re always happy to help.