Everything you need to know about motor insurance on a leased vehicle

If orange is the new black, then renting is the new owning! Sure, buying a home or a car has always been joyous moment, but the new generation is looking for practicality and they find it in the form of leasing. Until not too long ago, leasing was reserved for corporate big shots and luxury cars. Companies offered their top executives swanky premium cars as perks of the job.

However, the concept of leasing a car is picking up steam, and if you’ve been thinking about giving it a try, this article will further your planning and understanding of the concept by throwing light on the motor insurance aspect of car leasing.

Do I need to buy insurance on a leased car?

This is one of the biggest differences between owning and leasing a car. With your own car, you need to pay for various things such as a motor insurance plan, vehicle upkeep and in some cases, vehicle repair. However, with a leased car, the lessor will usually take of these aspects for you. Therefore, you will most likely end-up skipping on these costs!

Does this mean that the car will come with insurance?

Yes, most leased cars come with a pre-existing four wheeler insurance policy. The lease installment usually includes the cost of the car, the insurance premium, and any applicable taxes. Some of the better lease agreements will also cover maintenance, roadside assistance, repair costs & even offer round the clock replacement of the vehicle.

What if I want to tweak the insurance as per my needs?

Right, so as mentioned above, a leased car usually comes four wheeler insurance included. However, this can pose a problem for anyone with unique motor insurance needs.  The plan might not include the certain add-ons that you need or might not offer features that another insurance plan does.

Well, fret not! Most lessors will provide maintenance, repair, and insurance only on your demand. If you want to handle one or more of these costs on your own, including motor insurance, you are free to do so. You can choose the insurance policy you like and include the add-ons you feel are important.

The conclusion:

Leasing a car is great - you do not have to commit a large amount of your savings towards purchasing a vehicle. Instead, you can pay small amounts every month and enjoy the car to the fullest for as long as you wish. It’s also great if you bore easily with one car – all you have to do lease a new car after every couple of years! You can also choose the four wheeler insurance plan you deem fit or forget about this aspect altogether by letting the lessor cover this cost for you!

We hope this has been helpful and if you have any further doubts regarding motor insurance on a leased car, just speak to one of the many insurance companies. They will be more than ready to answer any of your queries. Good luck and congrats on your new leased car!