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Apr

29

/ 2021

Does Car Leasing Include Insurance?

One of the more popular questions we get asked is about insurance, and whether or not our leasing deals cover insurance policies as part of your contract.

So, to help answer this question, we’ve put together this quick blog guide that should clear things up. Within this piece, we will cover the various different car leasing and leasing options out there, how easy it is to get insured on a leased vehicle, which cars and vans are available to lease, and where best to get one.

Let’s kick things off with a summary of the different kinds of leasing options available.

What Are The Different Kinds of Lease Available?

Customers tend to lease a car or van, for one of two reasons. Those two reasons are for personal use or for use within a business. Vans are particularly popular for businesses, but companies also tend to lease cars for their staff, especially in certain industries and professions. For personal leases, cars tend to be more popular, and they can help spread the cost of a brand-new car over an agreed period of time, rather than shelling out a large amount of cash up front.

Whether it’s personal or business vehicle leasing you’re in the market for, there are certain things you need to consider before you get to thinking about insuring the car or van. There are a few different kinds of lease available for both forms of lease, so let’s take a look at the specifics of what they actually are before we cover how you can insure a leased car or van in the UK.

Personal Car or Van Leasing Options

First up for personal leasing options is the Personal Contract Hire, or PCH. This is a very popular contract hire option and is based on a fixed term contract agreed upon up front with the customer. Customers then simply pay an agreed monthly rental fee to use the vehicle for a set period, and return it at the end of the leasing contract. Simple. As long as you’re within the agreed mileage and the car meets the criteria & condition for it’s age, that’s the end of the contract and you’re good to go with no additional fees or charges surprising you.

The second option for individual customers is the Personal Contract Purchase, also commonly referred to as a PCP. This particular option is for individual customers looking for a good lease deal with more options available at the end of their finance contract. With a PCP, you make an initial payment when you originally agree to the contract, and then continue to pay a pre-agreed, fixed monthly amount until the leasing of the vehicle is completed.

At the end of the contract, you’ll have an Optional Final Payment, where you can trade in your vehicle with AVL if there is some equity and receive another new vehicle. Alternatively, you can simply return the vehicle as long as you’re within your pre-agreed mileage and the car is in good condition, you’ll receive no charge.

Both are great options but depend on the individual customers requirements, so take a look or give us a call on 01642 793 444 to find out which option is best for you.

Business Leasing Options

For business leasing, you can select a business contract hire, finance lease, or a contract purchase. A Business Contract Purchase is similar to the Personal Contract Purchase, in that it frees up options at the end of the leasing period for businesses for trading in your vehicle and may be more tax effective. A Business Contract Hire is also known as an Operating Lease, and is a long term rental from 12 to 60 months tailored to your specific requirements as a business.

Business Finance Lease lets you control the sale at the end of the contract by paying a monthly rental cost each month determined by the initial cost of the vehicle, the leasing period and the residual value, which is also known as a balloon payment. 

The leasing company reclaims all VAT on the original purchase in this situation, which means your monthly rental costs are lower. This makes this option very popular with businesses and a great tax incentive. It means you can claim back 50% of the VAT on the finance element of the vehicle and generally 100% for commercial usage, as well as the VAT on services, which is 100% recoverable. 

You never take direct ownership of the car or van in this instance, but you can pay a final rental balloon payment as you sell the vehicle which can benefit your cash flow and give you far greater flexibility.

All of these options help with budgeting and allows you to drive a brand new car or van, be it for personal or business use at low monthly payments.

Can I Get Insured on Any Car?

So, with the different kinds of car and van lease options available covered, let’s take a look at insurance policies and options.

For the most part, leasing companies do not offer insurance as part of the vehicle leasing agreement. It is not within the contract and is provided by a third party, so AVL does not play any role in securing insurance for our customers, whether it’s for business or personal use.

You will need to ensure that you organise fully comprehensive insurance. We can include things like maintenance, no damage recharges, and no excess mileage charges with certain kinds of lease, particularly for business purposes, but unfortunately the insurance is up to you.

Younger drivers in particular tend to find it difficult to get insured on highly powerful cars, but we can guarantee that you will be able to find something suitable to your age and experience that looks great and gets the job done, thanks to our enormous range of cars and vans available to lease throughout the UK. We even provide nationwide delivery on our leased vehicles, so you don’t have to worry about anything other than receiving your brand new car* or van and enjoying it.

There are all kinds of different aspects of insuring a car and elements that effect different drivers, so it’s best to get some quotes before you organise your new car.

Cars and Vans Available to Lease with AVL Today

AVL has plenty of cars and vans available on leasing contracts to choose from at great prices with something to suit everybody. This of course means you have plenty of opportunity to find something you can definitely get insured on when you shop with AVL. Take a look for yourself by searching online at our website for your perfect car or van, and please look out for our special offers that are updated every day.

From smaller, lower powered city cars to super cars and luxury saloons, you’re sure to find something that you can afford, easily be insured to drive, and most of all, enjoy. 

 

Get in Touch with AVL Today

We are a professional and friendly company with years of experience in the industry under our belts. Our friendly and passionate team are on hand to help you pick the perfect lease, and pride ourselves on our customer service. Basically, we love being able to talk with our customers about our lease deals, offering guidance and tips on your best options.

So, if you’re looking for a leased car or van, then AVL have something perfect waiting for you. We offer nationwide delivery on all our vehicles, and we’re sure you’ll leave with a smile on your face and a vehicle you’ll be proud to drive.

All you need to do is select something you like the look of on our site or get in touch with us on 01642 793 444 or by email at sales@avluk.co.uk for more information. 


*All of our cars are trailer delivered to your door where appropriate.