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Insuring A Lease Car

Last Updated: 8th Oct 2018
Insuring A Lease Car

8th October 2018

Before signing up to any financial agreement, it is important to do your research. And it’s no different when thinking of leasing a car.

How do I insure my lease car? Is insurance more expensive on a lease car? How can I reduce my insurance premiums? In this guide to insuring a lease car, we answer all your questions and share tips guaranteed to reduce your insurance premiums.

Does my lease agreement include insurance?

Like most other leasing companies, Hippo Leasing won’t include car insurance. While leasing can include many benefits including, free delivery, manufacturer’s warranty, breakdown and road tax, you will need to insure your car which is an additional cost you will have to budget for. You are responsible for arranging fully comprehensive insurance on the vehicle you lease.

Is it more expensive to insure a leased vehicle?

The actual cost of car insurance for a leased vehicle is not any greater than a vehicle owned outright.

Does the vehicle lease holder have to be the main driver?

Although this is lender dependent, most funders do require the main insurance policyholder and the finance agreement to be under the same name.

Can I add additional drivers to the insurance policy of my lease vehicle?

Yes. This can also bring your insurance premiums down, as long as additional drivers are seen as low risk i.e. they have previous driving experience, don’t have any driving convictions etc. Use a comparison site to see the difference this can make.

When do I have to insure my lease vehicle?

Once your vehicle has arrived at the dealership and all paperwork has been completed, our logistics team will contact you to arrange delivery or collection of your vehicle. At this stage, you will receive confirmation of your vehicle registration, ready to arrange your vehicle insurance.

A fully comprehensive insurance policy is required from the day of the delivery or collection.

How can I get cheaper insurance on my leased car?

  • Use comparison rates websites

Before choosing an insurance provider, it is worth checking online to compare insurance prices. Many comparison sites such as and Go Compare will get you fast quotes from multiple insurance providers. However, we do advise not to just stick to comparison sites as not all insurance companies will be listed.

  • Check car insurance groups

Each car is assigned an insurance group number, 1 being the lowest and 50 being the highest, this number reflects the cost of insuring the vehicle. So, leasing a vehicle in a higher insurance group is likely to give a higher premium and vice versa. We advise you check the insurance group before signing up for a lease on a specific car to ensure it is within your budget.

  • Pay premiums annually

If you can afford to pay your insurance in a lump sum it will usually save you money overall.

  • Consider a black box

Some insurers offer discounts to those who drive carefully; driving is monitored via a telematics device measuring your speed and vehicle handling.

If you are interested in leasing a low insurance vehicle, enquire today by giving us a call on 01254 956 666 or drop us an email at

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