Personal lease insurance
Discussion
I am not posting in the "best lease deals" thread because people get upset if you deviate from the thread title 
My daughter is getting one of the 125D deals that were about a few months ago. Her current insurer (own car cover) wont cover her for a leased car. So can you recommend the best place for her to try please?
Sorry if it has been done recently but a search showed older posts and situations change for ins companies, especially with leasing being so popular right now.
My daughter is getting one of the 125D deals that were about a few months ago. Her current insurer (own car cover) wont cover her for a leased car. So can you recommend the best place for her to try please?
Sorry if it has been done recently but a search showed older posts and situations change for ins companies, especially with leasing being so popular right now.
charltjr said:
I just tried confused.com, you can specify that you're leasing it and the search will filter out all the insurers who won't quote.
Unfortunately Confused seems .. well confused, some companies filtered out are ok with leasing and some included are not willing to cover when I was checking for myself a few weeks ago. Hence why I thought I would ask the PH collective who is good to try from actual experience.
Sorry another question. My daughter has just asked about GAP insurance, I know about ALA and 123 but at what level is cover needed?
So the 125D is say £28K, what cover on that for a 2 year lease? If car is stolen/written off then the value difference is needed? Any ideas what that would be?
Again thanks
edited to add, would Admiral do GAP at a good price, sort of keep it in house? Anybody done this
So the 125D is say £28K, what cover on that for a 2 year lease? If car is stolen/written off then the value difference is needed? Any ideas what that would be?
Again thanks
edited to add, would Admiral do GAP at a good price, sort of keep it in house? Anybody done this
Edited by rongagin on Wednesday 18th March 16:34
You should get the Finance GAP/one that covers PCH. More often than not (you will have to read the lease paperwork) but you will be liable for the entire lease payments if its written off even if it was a day old. So your GAP should cover at least the cost of the lease.
On a Fiesta ST-2 which cost £4700 i got GAP which covered £7500 for £69, could of gone for £5000 but was only £6 less than £7500 and not 100% sure if it got valued less by the insurance than the finance owners would be happy with, what would happen and for the GAP price difference it wasnt worth the worry.
On a Fiesta ST-2 which cost £4700 i got GAP which covered £7500 for £69, could of gone for £5000 but was only £6 less than £7500 and not 100% sure if it got valued less by the insurance than the finance owners would be happy with, what would happen and for the GAP price difference it wasnt worth the worry.
Edited by duckson on Wednesday 18th March 20:24
Edited by duckson on Wednesday 18th March 20:25
Just my 2c from my experiences. With my lease the finance company is the registered owner & keeper. I'm with Elephant (as someone has said part of the Admiral group) and there's a place especially for declaring both these bits of info on the quote.
RE GAP - I went with Ala (make sure to use the PH discount). With the GAP policy there is an option for Contract Hire so no trouble there and the quote takes 2 mins so get it done before ringing the insurer and you'll get a good back to back.
To be honest though with Elephant they offer everything under the sun as an add-on and it never was offered so I guess they don't have it - can't believe they would miss the opportunity but worth asking! With the gap level, remember your aim is to get the difference between the worst case old & new. So my Fiesta on a 2yr lease will probably drop about 7k so a level of cover of 7500 is adequate but have a play with it and see what you are comfortable with.
RE GAP - I went with Ala (make sure to use the PH discount). With the GAP policy there is an option for Contract Hire so no trouble there and the quote takes 2 mins so get it done before ringing the insurer and you'll get a good back to back.
To be honest though with Elephant they offer everything under the sun as an add-on and it never was offered so I guess they don't have it - can't believe they would miss the opportunity but worth asking! With the gap level, remember your aim is to get the difference between the worst case old & new. So my Fiesta on a 2yr lease will probably drop about 7k so a level of cover of 7500 is adequate but have a play with it and see what you are comfortable with.
So am I right in saying if the lease cost is 23 x £250 (after the initial 3 up front) then the GAP cover should be £5750 at least?
Or is it based on the insurance value at the point of loss? So any shortfall? How could this be known in advance?
Thanks for all the advice
Edited to ask what is the ALA discount?
Or is it based on the insurance value at the point of loss? So any shortfall? How could this be known in advance?
Thanks for all the advice
Edited to ask what is the ALA discount?
rongagin said:
So am I right in saying if the lease cost is 23 x £250 (after the initial 3 up front) then the GAP cover should be £5750 at least?
Or is it based on the insurance value at the point of loss? So any shortfall? How could this be known in advance?
Thanks for all the advice
Edited to ask what is the ALA discount?
To my mind, and this is not financial, legal or otherwise regulated advice, just a statement of my experience, there are two ways of looking at GAP insurance for leases.Or is it based on the insurance value at the point of loss? So any shortfall? How could this be known in advance?
Thanks for all the advice
Edited to ask what is the ALA discount?
My VW lease is quite clear: I need to assign to them the value of any insurance payout, PLUS pay them all outstanding lease payments. So if my car is written off tomorrow, I owe £130 × 23, plus whatever the insurance company gives me. (Let's ignore that it smells like an unenforceable penalty, because they could be much better off by claiming that back than by simply selling me the car in the first place: I know this, but I can insure against it for a reasonable amount). In that scenario, there's no obligation on me to 'settle' the lease - and in fact I can't do so. So my liability appears to be capped at around £3k.
The second scenario is that the finance company has a settlement figure in mind, which would be my theoretical cost of exiting the lease and buying the car. That amount is quite likely to be more than an insurance payout (but of course it might not be). If you were to take the difference between list price, and the trade value of an equivalent car at the end of the lease term, I'd feel safe in terms of getting sufficient cover.
So, in summary, I'd read my lease contract and see how it defines my liability in the event of an insurance write-off. If I could calculate it, I'd make sure that at least that figure was covered - if not, I'd do the trade to list calculation and buy that, understanding that GAP insurance doesn't get all that much more expensive with higher levels of coverage.
CYMR0 said:
To my mind, and this is not financial, legal or otherwise regulated advice, just a statement of my experience, there are two ways of looking at GAP insurance for leases.
My VW lease is quite clear: I need to assign to them the value of any insurance payout, PLUS pay them all outstanding lease payments. So if my car is written off tomorrow, I owe £130 × 23, plus whatever the insurance company gives me. (Let's ignore that it smells like an unenforceable penalty, because they could be much better off by claiming that back than by simply selling me the car in the first place: I know this, but I can insure against it for a reasonable amount). In that scenario, there's no obligation on me to 'settle' the lease - and in fact I can't do so. So my liability appears to be capped at around £3k.
The second scenario is that the finance company has a settlement figure in mind, which would be my theoretical cost of exiting the lease and buying the car. That amount is quite likely to be more than an insurance payout (but of course it might not be). If you were to take the difference between list price, and the trade value of an equivalent car at the end of the lease term, I'd feel safe in terms of getting sufficient cover.
So, in summary, I'd read my lease contract and see how it defines my liability in the event of an insurance write-off. If I could calculate it, I'd make sure that at least that figure was covered - if not, I'd do the trade to list calculation and buy that, understanding that GAP insurance doesn't get all that much more expensive with higher levels of coverage.
Thanks for taking the time to write that, very helpful.My VW lease is quite clear: I need to assign to them the value of any insurance payout, PLUS pay them all outstanding lease payments. So if my car is written off tomorrow, I owe £130 × 23, plus whatever the insurance company gives me. (Let's ignore that it smells like an unenforceable penalty, because they could be much better off by claiming that back than by simply selling me the car in the first place: I know this, but I can insure against it for a reasonable amount). In that scenario, there's no obligation on me to 'settle' the lease - and in fact I can't do so. So my liability appears to be capped at around £3k.
The second scenario is that the finance company has a settlement figure in mind, which would be my theoretical cost of exiting the lease and buying the car. That amount is quite likely to be more than an insurance payout (but of course it might not be). If you were to take the difference between list price, and the trade value of an equivalent car at the end of the lease term, I'd feel safe in terms of getting sufficient cover.
So, in summary, I'd read my lease contract and see how it defines my liability in the event of an insurance write-off. If I could calculate it, I'd make sure that at least that figure was covered - if not, I'd do the trade to list calculation and buy that, understanding that GAP insurance doesn't get all that much more expensive with higher levels of coverage.
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