Leasing is an increasingly common practice among Swiss drivers. It consists of leasing a car for a given period of time, then either returning the leased car at the end of the lease, or acquiring it permanently in the case of leasing with a purchase option. The vehicle is not necessarily new at the start of the lease, but perfectly maintained. Which insurance contract should I choose for a leased car ? What are the advantages, disadvantages and differences with no-leasing car insurance ?
Who should insure the vehicle, with or without leasing ?
Drivers must insure their vehicles, with or without a lease. Car insurance, regardless of the type of vehicle purchased (cash, credit or lease), is compulsory for all motorized vehicles used on public roads. As a minimum, you need third-party liability insurance, which covers only property damage and bodily injury caused by the insured vehicle to third parties in the event of an at-fault accident on the part of the motorist. If you don’t have third-party insurance, you won’t receive authorization for your vehicle from the motor vehicle department. To obtain this authorization, you need a certificate of insurance, sent electronically by your insurer to your cantonal motor vehicle department. If you lease a car, it’s up to you to take out car insurance, either by accepting the insurance offered by the leasing company, which can insure the leased car, or on your own, by selecting the leased car insurance contract.
This means that you also have to pay for this car insurance in addition to the monthly lease payments. If you decide to take out insurance outside the leasing company, you must first ensure that the contract selected is suitable for your finance company.
The leasing company can offer car leasing insurance
In many cases, the leasing company can offer you a car insurance policy directly when you sign the leasing contract. You are not obliged to accept: The best option is to compare this offer with other car insurance companies on the market.
For a leased vehicle, the leasing company will require you to take out comprehensive insurance, also known as complete collision or fully comprehensive insurance. You cannot refuse this requirement. If the leasing company has a list of requirements for car insurance on your leased car, it’s sometimes simpler to take out the insurance contract they offer.
Which car insurance should I choose for a leased car ?
The best car insurance for a leased car will depend on your constraints and personal situation. Like all car insurance, its price can vary according to your situation and the vehicle’s technical characteristics. The best thing to do is to use car insurance comparison services and get a personalized online quote, which will tell you exactly how much you’ll have to pay if you take out leasing car insurance. You can also contact us so that we can offer you leasing car insurance through our partner insurers. You’ll benefit from a discount on your first year’s premium.
Warranties to choose for car leasing insurance
Leasing companies will require you to have a comprehensive insurance policy. This will ensure that you are covered in all situations, not only for bodily injury but also for material damage to the vehicle. Leased vehicles are often recent and of very high quality, so they have a high value.
Liability or partial cover will not be accepted for a leased car. Full comprehensive insurance often includes a wide range of cover already included in the contract. Some types of insurance cover are therefore compulsory for leasing companies, such as theft, fire, etc. Each situation will depend on the lessee and the vehicle. For their part, insurers offer situations adapted to leased cars.
What to do in the event of an accident with a leased car ?
In order to anticipate this kind of inconvenience, leasing companies require drivers to be insured with the highest levels of cover. This ensures compensation for bodily injury and material damage to third parties, as well as to the driver. The procedure remains the same as if you were the owner of the vehicle: in the event of an accident, you must notify your insurer to initiate the claims procedure. Of course, you must also notify the leasing company that owns the vehicle. As with all automobile claims, if your contract includes a deductible, you’ll have to pay it. If, on the other hand, you have opted for a policy with no deductible, you won’t have to pay anything.
Leasing with used cars
Leasing can be applied to both new and used cars. In this case, the system works in the same way as for a new car: you pay rent every month to use your leased car over a defined period. You can put down a deposit or pay an increased first lease rental, and you can choose to buy your car at the end of the leasing contract if you are leasing with an option to purchase. Leasing with used cars is even more affordable. Just take a look at the ads for leased cars for trade-in on our platform and you’ll see that a car lease trade-in can be financially advantageous. When it comes to leasing car insurance, the conditions are the same for a used car as for a new one.
Leasing and car insurance: are they still always linked ?
Insurance is not always included in a leasing contract, depending on the leasing company. In any case, you can accept or refuse the offer. The leasing company will require you to take out comprehensive insurance cover, whether the leased vehicle is new or used. In general, it’s easier to accept the car insurance offered by the leasing company if it has one, especially when it comes to paying the monthly payments, which will combine the leasing charge and the insurance into a single monthly payment, and making administrative management easier.
