Insurance requirements for leased vans and cars
Ensuring your leased vehicle is properly insured is a fundamental part of your agreement. Many drivers assume that insurance is included with a lease contract, but this is not the case. Leasing does not automatically provide insurance, and it is the customer’s responsibility to arrange adequate cover before the vehicle is delivered.
While some providers offer insurance-inclusive packages, these options often limit your flexibility and typically cost more overall. By sourcing your own insurance independently, you maintain full control over pricing, policy features, and provider choice. Our aim is to offer complete transparency so that you can secure the most competitive and appropriate insurance for your circumstances.
When should you arrange insurance for a leased vehicle?
Your insurance policy must be active from the day your vehicle is delivered. To help you prepare, we supply the vehicle registration number approximately 5–10 working days before delivery. This allows you to finalise and activate your policy in advance.
We strongly recommend researching insurance options early. Comparing quotes ahead of time can:
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Ensure smoother delivery with no delays
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Provide more competitive pricing
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Give you the opportunity to tailor your cover correctly
Remember: a leased vehicle must be fully insured for the entire duration of your contract, without gaps or lapses in cover.
What type of insurance do I need for a leased van or car?
All leased vehicles must be covered by a fully comprehensive insurance policy. This level of cover protects both you and the finance provider’s asset, ensuring the vehicle is safeguarded against damage, theft, fire, accidents, or third-party claims.
Key requirements include:
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The policyholder’s name must match the individual or business named on the finance agreement
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For business leases, the policy must clearly state the company name (where applicable)
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The policy must include the vehicle registration number once provided
Comprehensive cover is mandatory—third-party or third-party, fire & theft policies are not acceptable for leased vehicles.
Can I add additional drivers to a leased vehicle policy?
Yes. If the lease is in your name (or your company’s name), you must be listed as the main driver on the policy. However, most insurers allow you to add additional named drivers, such as:
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Family members (for personal leases)
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Employees (for business leases)
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Partners or co-directors
It is your responsibility to ensure all named drivers meet your insurer’s eligibility criteria.
Who owns a leased vehicle?
Even though you are responsible for insuring and maintaining the vehicle, ownership remains with the finance provider for the duration of the contract. You are the registered keeper and user of the vehicle, but not the legal owner.
You must declare this arrangement when setting up your insurance policy to ensure the cover is valid and correctly recorded.
Still have questions?
Our quick, at-a-glance vehicle insurance FAQs cover the key points every customer should know before leasing.
1. Is insurance included with my lease agreement?
No. Insurance is not included as part of your car or van lease agreement. You are responsible for arranging your own fully comprehensive insurance policy before the vehicle is delivered.
2. When should I arrange insurance for my leased vehicle?
Your insurance must be active on or before the delivery date. We provide your registration number 5–10 working days in advance so you can finalise your policy.
3. What type of insurance do I need for a leased vehicle?
All leased vehicles require fully comprehensive cover. Third-party or third-party, fire & theft policies are not accepted by finance providers.
4. Does the policyholder have to match the finance agreement?
Yes. The main policyholder must match the name on the finance agreement.
For business leases, the policy must include the company name.
5. Can I add additional drivers to my insurance?
Yes. You can add additional named drivers as long as:
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You (or your company) are listed as the main driver, and
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The insurer approves the additional drivers.
6. Who is the legal owner of a leased car or van?
The finance provider is the legal owner. You are the registered keeper and must insure the vehicle accordingly.
7. Can I transfer my existing insurance policy to my leased vehicle?
Often yes, but it depends on your insurer. You may need to update your policy details or start a new policy depending on vehicle type, value, and usage.
8. Do I need business insurance for a leased van?
If you are using the vehicle for work—deliveries, travel between sites, carrying tools or equipment—you will typically need a business-use insurance policy.
For company cars, you may also need to include social, domestic and pleasure use if the vehicle is used outside work.
9. Does GAP insurance come with a leased vehicle?
Standard lease agreements do not include GAP insurance. Many customers choose GAP cover separately because it protects against financial loss if the vehicle is written off or stolen.
10. What happens if I don’t insure the vehicle correctly?
Incorrect or insufficient cover can:
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Delay the vehicle’s delivery
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Invalidate your insurance
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Breach your lease agreement
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Leave you liable for repair or replacement costs
Always ensure your cover meets the finance company’s requirements.
11. Can I lease a vehicle without insurance?
No. Finance providers require valid comprehensive insurance from day one. A vehicle cannot be legally driven—or delivered—without it.
12. Can my insurer refuse to cover a leased vehicle?
Some insurers may have restrictions on leased commercial vehicles or high-value cars. If this happens, simply obtain quotes from alternative providers; many insurers specialise in leased vehicles.
13. Does my leased vehicle need to be insured for the entire contract term?
Yes. Continuous insurance is mandatory for the full duration of your lease. Any gaps in cover would breach your agreement.
14. Do I need to notify my insurer if my lease ends early?
Yes. If your lease is terminated early, you must inform your insurer immediately and update or cancel your policy as needed.
15. Can I use telematics (“black box” insurance) on a leased car or van?
Usually, yes. Many telematics devices are compatible with leased vehicles, but check with your insurer first, as some devices require installation that may not be allowed.
