For a car to be insured, the person taking on the insurance must have an ‘insurable interest’ in the car – meaning that they would face some kind of loss (financial and otherwise) should the car be damaged or stolen. However, if you are leasing a vehicle, you aren’t the owner, meaning insurable interest may be reduced.
Due to this, insurers may vary on whether they will insure a leased vehicle or not. Some insurers may agree to insure them if they receive a copy of the lease agreement, and the agreement is in the name of the policyholder (or in some cases, a relative of the policyholder). Others may not insure leased vehicles at all. This is why it’s important to declare that your car is leased when you make an insurance quote, so that we can offer you quotes from the right insurers.
Keywords: hire vehicle, car on finance, lease