"Most lease agreements include an annual mileage limit, which is typically around 10,000 a year on average. Make sure you set your mileage accurately to match the leasing contract when you get your quote. If you go over your agreed mileage you may face extra charges from your leasing company."
Do I need GAP insurance for my lease car?
A GAP insurance policy can help bridge the gap between the value of the car and the amount the insurer pays out if your car is written off.
If your leased car is stolen or declared a total loss following an accident, insurers only pay out the current market value of the car. If this is less than the outstanding finance on your leasing agreement, you're left paying the difference.
There are 3 main types of GAP cover suitable for leased cars:
- Contract hire GAP insurance
- Vehicle replacement GAP insurance
- Return to invoice (RTI)
- Contract hire GAP insurance pays the difference between your hire car insurer’s settlement sum and the outstanding finance owed on the car.
- Vehicle replacement GAP insurance is a more comprehensive and typically more expensive form of protection. This cover option pays any outstanding finance owed on the lease deal. It also pays for a replacement vehicle of the same specification, age and mileage as the one that needs replacing.
- Return to invoice (RTI) is suitable for cars that were leased brand new. It pays the difference between the insurance payout and the original value of the car. If your car is declared a total loss, the difference between your insurer’s payment and the cost of your vehicle when you bought it is covered, including any outstanding finance.
What our expert says
Need more help?
Breakdown cover is often included with new lease car contracts, but it depends on the deal you choose. There may be limitations on the level of cover included, so it's worth checking you have the right cover that suits your needs.
You can compare breakdown cover with us and buy a stand alone policy if it's not included in your lease agreement.
You can add drivers to your car insurance policy on a lease car, but the main driver must be listed as the policyholder. Drivers who aren't named on your policy can still drive your lease car, providing they have their own insurance policy that covers them to drive other cars.
Types of car insurance
covers you if you use your car for work, including travelling between offices or across the country.
for those looking for short-term cover when purchasing a new car.
lets you insure one or more cars on the same policy.
is a legal requirement if you're driving in the UK. Find out more about choosing the right cover at the right price.
offers cover for owners of classic cars. For insurance purposes, a classic car can be any car that’s older than 15 years.
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