When you're considering leasing or buying a car, one of the most important questions you'll face is how much car insurance you need.
It's a tricky question that, unless you've leased before, there's no one-size-fits-all answer.
But don't worry; in this blog, we'll break down car insurance and discuss how much coverage you really need.
We discuss:
First things first, we need to understand the basics of car insurance in the UK. There are three types of car insurance: comprehensive, third-party fire and theft, and third-party only.
Let's explain:
- Comprehensive - Comprehensive car insurance gives you the highest level of protection; you are pretty much covered for everything. If your car is stolen, damaged, vandalised, or destroyed in a fire or by flooding, you'll receive full compensation. You'll also be able to claim for an accident that was your fault, and if your car is damaged, but you don't know who's at fault.
- Third-party fire and theft—This is the level down from comprehensive car insurance. It covers you for any damage made to a third party, their vehicle, or property. You're also covered for fire damage or having your car stolen.
- Third-party - Third party is the minimum car insurance needed to drive on UK roads. It protects other people, vehicles, and property in the event of a car accident that was your fault.
However, there are other options for car insurance in the UK:
- Black box - Black box insurance is ideal for young drivers who often pay more for insurance. A black box is installed in your car, which tracks your driving performance. The better you drive, the lower your insurance. For more information, check out our guide, Black Box Insurance and Car Leasing.
- Temporary - This gives you short-term cover for driving a car and is ideal if you're borrowing a car for a short period of time.
- Classic car - This is for older cars that are mainly for leisure purposes. There can be stricter terms and conditions, but often it works out cheaper because classic cars are driven much less.
When considering what car insurance coverage to go for, you'll need to consider your needs and circumstances. Ask yourself these questions:
- What's my budget? - The higher the coverage you get, the more it will cost.
- How much do I drive? If you're on the road all the time, such as travelling for work or dropping the kids off from A to B, you're at a higher risk of accidents. This may make comprehensive coverage more worthwhile.
- Where do I live? - If you live in a city or an area with a high rate of car accidents or thefts, comprehensive insurance might be worth the extra money.
- What's my car worth? - If you're driving a high-end vehicle, you'll want to ensure it's fully protected with comprehensive insurance.
When you lease a car, you must opt for a fully comprehensive insurance policy that covers the cost of repairing damage to your vehicle and the third party.
Your lease vehicle will need to be insured from the day of delivery and must remain in place for the duration of your lease agreement.
For peace of mind, you can opt for our Complete Care package, which includes insurance, maintenance, and breakdown coverage for a fixed monthly fee.
For more information on car insurance for a lease vehicle, see our guide, Insuring Your Leased Vehicle.
When considering what coverage to go for on your car, always go the extra mile to lower your premiums. Shop around for insurance quotes, increase your deductibles, and take advantage of discounts to return a lower monthly premium.
If you're looking for more information on decreasing your insurance, check out our blog, Ways To Save Money on Car Insurance While Leasing.
The world of car insurance can be a mysterious and intimidating beast. You're surrounded by specific jargon, a range of policies, and various prices.
However, by understanding the basics, such as the different types of insurance, your personal needs, and car insurance while leasing, you can make an informed decision pretty easily.
Remember, it's always worth it to pay extra and get better insurance coverage in the event that something bad happens. There's nothing worse than getting caught short in terms of insurance after an issue with your car.
Looking for more car insurance advice? Nationwide Vehicle Contracts has produced a range of guides on car insurance, such as the Cheapest Family Cars to Insure and Black Box Insurance Explained.
We are also one of the UK's largest car leasing brokers, offering various services to suit your every need. From our Fast Lease Service to our Used Car Leasing, we'll be sure to have a car leasing deal you'll love.
