Leasing - Early Termination Insurance - Worth It?

[ARF8885]

Hoping someone can help.

I'm currently in the process of taking out my first Salary Sacrifice. The option of Early Termination Insurance (ETI) has been offered up, but its adding circa £50-60 a month extra onto the monthly payments (net).

Having not done a SS before only ever Personal Leasing, we've never even considered having to have insurance to cover this.

My question is, is this cover on top of cover? As part of my benefits at work we get Critical Illness, Life Assurance and Income Protection.

[Mr Overheads]

My understanding is that it protects the business from being stuck with a lease for a car they don't need if the employee leaves.

So should the business pay it or should you pay it? Negotiate a £50 rise to cover it if they want to protect against that risk.

[ARF8885]

Mr Overheads said:

My understanding is that it protects the business from being stuck with a lease for a car they don't need if the employee leaves.

So should the business pay it or should you pay it? Negotiate a £50 rise to cover it if they want to protect against that risk.

It seems to differ. But it feels like something both parties benefit from, however arguably the Employer ultimately benefits from it the most.

If it’s something to have and it’s not a duplication of cover, then I’d just use the Employer Savings on NI to offset the cost.