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Do I Need to Insure a Leased Van?

Getting insurance for a leased van is like insuring any other vehicle, but there are some differences to be aware of. This handy guide provides all the information you need about getting the right insurance for your leased van.

Tom Roberts

Words by: Tom Roberts

Published on 6 March 2024 | 0 min read

Whether you are leasing a van for personal or business use, getting it insured is not just recommended, it is a legal requirement and fully comprehensive insurance is required. The guide has been broken up into some of the most asked questions we hear from customers about insuring a leased van.

Is Insurance Included In The Monthly Van Leasing Payments?

Van leasing lets you drive the van you want for fixed monthly payments, but insurance is not normally included in those monthly payments. It is important to consider this additional cost when selecting your lease vehicle. While some lease deals may include insurance, it is not common and not something offered at Auto Trader Leasing.
Remember, driving a van without insurance is illegal and can lead to fines, points on your license and potentially a driving ban if you are caught.

What Type Of Insurance Policy Is Required For Driving A Leased Van?

Leasing a vehicle requires a fully comprehensive insurance policy, with lesser policies such as third-party cover not accepted. The finance company will usually insist on comprehensive insurance coverage to fully protect their asset throughout the lease period.

When Should I Insure A Leased Van?

Most leasing providers demand proof of insurance before the agreed-upon delivery date. Although insurance coverage does not need to commence immediately, it is crucial to ensure coverage spans the entire contract duration, from the delivery day to the collection day.

What’s Covered By A Fully Comprehensive Van Insurance Policy?

Fully comprehensive insurance covers damage to your leased van, liability for collision damage to another person's vehicle, personal injury costs, damage to other properties, theft, fire, and more. The coverage extends to repairs, and in case of a write-off, you only pay the agreed excess.
You can also add a variety of bolt-on insurance policies to your main policy, including personal device cover and tools-in-transit cover, to name just two.

What’s Not Included In Fully Comprehensive Cover?

Certain events may not be covered, typically outlined in the policy certificate. Examples include damage due to your fault outside a collision, negligence in theft cases, driving without a valid license, and fair wear and tear (read more about that in our handy guide to fair wear and tear).

How Do I Insure A Leased Van?

Insuring a lease van closely resembles insuring any other vehicle, with minor differences. You must inform the insurer that it is for a leased van, specifying the named driver for personal leases and the company director for business leases.

What About GAP Insurance?

GAP insurance is a policy type that covers the potential shortfall between what you owe the finance company and what your insurance covers if the vehicle is written off. It is not a legal requirement but provides peace of mind that if the worst happens and your vehicle is taken off the road for good, you will have the money required to pay off all remaining expected payments.

Is Insurance More Expensive For Leased Vans?

Insurance costs for leased vans should be comparable to any other similar vehicle. The requirement for fully comprehensive cover might make it appear more expensive, but annual payments, carrying over a no-claims bonus, and adjusting your excess can help manage the costs.

Where Can I Find More Van Leasing Information?

Explore more about van leasing in our comprehensive guides covering various aspects of the leasing process, from understanding how van leasing works to comparisons between buying and leasing. And, if you are ready to discover your next vehicle, look through our latest van leasing deals.

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