Cost of car insurance when leasing

GoonerByron

Hi all,

Currently in the process of needing to get a new car, my 12 year old car has finally had it. I've been weighing up the pros and cons of buying vs leasing and decided leasing would suit me at the moment as don't have cash sat there waiting to be used after just buying first house and want to keep monthly payments as low as possible..

Question is, should I be expecting to pay a much larger insurance premium just because the vehicle is leased? It's not something I'd read anywhere or factored into the budget and doing some comparisons on the car I want, I get a cheapest quote of £635 for leasing but if I put the same vehicle in as owning it the cheapest quote goes down to around £320.. My current insurance is £240 so a massive leap..

Hope someone can help!

InsideInsurance

Are the two prices the same company?

For reasons I've never fully worked out many companies will decline to quote online if you note that the finance company is the owner/ registered keeper as is normally the case with leases. Of those companies that decline I am yet to find one that wont actually insurer it if you pick the phone up and speak to them but they normally ask a couple of questions to ensure its a "long term lease".

Of those companies I called when tossing up between PCP and Leasing myself none changed their premium from what I'd gotten online for saying I owned it.

albionrovers

As above. Never been a problem for me.

OddballJamie

Buy a cheap used car and plough the money you had aside for leasing into your mortgage.

Rates will not stay this low forever, you'll thank me in the future.

arcon5

Leasing is rarely the moneysaving of options. It's an option if you want a nice car without the outlay, not necessarily cheap in that you need to maintain it, inside out to ensure you are not landed with a large bill when you return it.