Cost of car insurance when leasing

[GoonerByron]

Hi all,

Currently in the process of needing to get a new car, my 12 year old car has finally had it. I've been weighing up the pros and cons of buying vs leasing and decided leasing would suit me at the moment as don't have cash sat there waiting to be used after just buying first house and want to keep monthly payments as low as possible..

Question is, should I be expecting to pay a much larger insurance premium just because the vehicle is leased? It's not something I'd read anywhere or factored into the budget and doing some comparisons on the car I want, I get a cheapest quote of £635 for leasing but if I put the same vehicle in as owning it the cheapest quote goes down to around £320.. My current insurance is £240 so a massive leap..

Hope someone can help!

[Tiggsy]

Not sure my insurance comp even knows mine are leased??? And I've claimed a few times on them with no issue!

(now waiting to be told I've done that wrong!)

[sidicks]

Tiggsy said:

Not sure my insurance comp even knows mine are leased??? And I've claimed a few times on them with no issue!

(now waiting to be told I've done that wrong!)

Don't they normally ask who owns the car....

[jimmyVX]

Depends on the insurance in my experience.

Direct Line wouldn't cover me, as I was not the registered keeper of the car for example. However, I have a multi-car policy with Admiral and they didn't ask me who the registered keeper was, I assume that's due to the nature of the multicar policy.

Worth shopping around.

[sidicks]

jimmyVX said:

Depends on the insurance in my experience.

Direct Line wouldn't cover me, as I was not the registered keeper of the car for example. However, I have a multi-car policy with Admiral and they didn't ask me who the registered keeper was, I assume that's due to the nature of the multicar policy.

Worth shopping around.

If you have taken out a contract hire agreement, aren't you the registered keeper but not the registered owner...??

[Phateuk]

sidicks said:

jimmyVX said:

Depends on the insurance in my experience.

Direct Line wouldn't cover me, as I was not the registered keeper of the car for example. However, I have a multi-car policy with Admiral and they didn't ask me who the registered keeper was, I assume that's due to the nature of the multicar policy.

Worth shopping around.

If you have taken out a contract hire agreement, aren't you the registered keeper but not the registered owner...??

In my experience neither - the lease company doesn't send out the V5 to you (why would they?).

[shakotan]

Phateuk said:

sidicks said:

jimmyVX said:

Depends on the insurance in my experience.

Direct Line wouldn't cover me, as I was not the registered keeper of the car for example. However, I have a multi-car policy with Admiral and they didn't ask me who the registered keeper was, I assume that's due to the nature of the multicar policy.

Worth shopping around.

If you have taken out a contract hire agreement, aren't you the registered keeper but not the registered owner...??

In my experience neither - the lease company doesn't send out the V5 to you (why would they?).

To tax the vehicle?

My leased vehicle has a V5C in my name.

[Phateuk]

shakotan said:

Phateuk said:

sidicks said:

jimmyVX said:

Depends on the insurance in my experience.

Direct Line wouldn't cover me, as I was not the registered keeper of the car for example. However, I have a multi-car policy with Admiral and they didn't ask me who the registered keeper was, I assume that's due to the nature of the multicar policy.

Worth shopping around.

If you have taken out a contract hire agreement, aren't you the registered keeper but not the registered owner...??

In my experience neither - the lease company doesn't send out the V5 to you (why would they?).

To tax the vehicle?

My leased vehicle has a V5C in my name.

Interesting, I've always had the tax disc sent to me in the post from the lease company and has been part of the monthly rental - is this not the norm? If I was leasing cars out I'd want to keep hold of the V5C to prevent any headache over log book loans etc

[Pickled Piper]

If you have a vehicle on contract hire, you are not the registered keeper but the authorised hirer. Most insurance cos don't have a problem with this.

[Simpo Two]

I wondered if part of it might be actuarial - in other words, perhaps leased cars get taken less care of/are involved in more claims than driver-owned ones?

[sidicks]

Simpo Two said:

I wondered if part of it might be actuarial - in other words, perhaps leased cars get taken less care of/are involved in more claims than driver-owned ones?

That would of course be the reason!

[Simpo Two]

Jeepers, I've won an award

Thanks bud!

[rfoster]

shakotan said:

To tax the vehicle?

My leased vehicle has a V5C in my name.

If you have an 'operating lease' or 'finance lease' agreement then the vehicle is registered to you - and you'll pay the VED as & when it's due. With a contract hire agreement, the vehicle is registered to the finance company and you are effectively 'hiring' it from them for a set period of time - they provide the VED.

[R8Steve]

I lease a merc for getting me to work and back and the logbook is in my name. I had no issues with the insurance, the only thing they asked was is the car registered to me, which it is. Not sure what would have happened had i said no right enough.

[rfoster]

R8Steve said:

I lease a merc for getting me to work and back and the logbook is in my name. I had no issues with the insurance, the only thing they asked was is the car registered to me, which it is. Not sure what would have happened had i said no right enough.

This is quite popular with Mercedes - you have an operating lease. Slightly cheaper than contract hire, and you'll pay for the VED yourself when it's due.

[jdwoodbury]

I am with Hastings and they did not blink when I told them the registered keeper was Ford Lease