Personal Lease Insurance

chuffinnora

I have a new car ordered under a personal lease agreement with Kia.

2 issues seems to be causing me a headache for obtaining insurance:

In the T&Cs it states… "You will also have to ensure we are named as owner and loss payee under the insurance policy"…Insurance comparision websites dont seem to draw out this point, even if they ask if its a lease car. I've spoken to a couple of insurance companies direct and neither so far will entertain adding a "named" lease company specifically. They accept the legal owner and RK is the lease company, but that actual point of naming them on the policy is a sticking point.

The dealer/lease company dont actually register the car with DVLA until the day I drive it away (they put 2 days drive away insurance on it). I am able to get plenty of quotes but they seem reluctant to allow insurance to actually be taken out early with no DLVA registration. Obviously I can wait until it is on the DB, but that means losing potentially competitive quotes.

Either I've just spoken to the wrong call desk advisors, or this is typical. Surely it must be easier than this as there are huge number of personal lease drivers out there? The dealer also said most people add Gap insurance as a precaution, but I've not even got that far in adding that question yet.

If anyone has got a personal lease, did you experience the same issues? Who did you insure with?

paul_c123

Can't you get a (competitive) quote many days ahead, then have the insurance start at a later date to coincide with the arrival of the car?

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/6658545/personal-lease-insurance

When you are through to the insurers website have you checked that it's correctly showing that the finance company is the owner and keeper?

Most insurers are ok with it, you dont have to do anything up front with them and the terms will state who gets paid in the event of a total loss of a lease car… note that it won't name the finance company but be in more general terms… it would cause a problem if they named Kia and then someone bought out their leasing operations and you dont realise so the payment goes to the wrong company.

Seeing as it is a lease certainly read the terms properly, there is a wide spread of approaches in policies as to what happens if the total loss value is above the monies the lease company say they want… some will just payout what the lease firm want, some will payout the full value to the lease company and its then up to that firm what they do with the extra and some will pay the surplus directly to you. Obviously often it's a non-issue because the value of the vehicle is less than what you owe hence GAP insurance but it does happen occasionally.

Most the time the dealer will get the car and register it a couple of days before you do, in principle gives them time to check it over, fix any minor transportation damage etc. You then get your free insurance for a couple of days. So you aim to buy your insurance to start after the free insurance runs out. That should be enough time for the DVLA records to be published so the insurer happy with writing it.

born_again

Kia do not offer a lease on their website. So is this via a 3rd party lease co?

There is only PCP purchase or Personal Motor Loan

chuffinnora

Just to clarify, its not Kia themselves that run the lease, the use a 3rd party called ALD.

But this is what Kia use as standard for the dealership leasing deals. Appreciate I could take a different one elsewhere, but was raising questions for this scenario.

The clause is very specific, and the dealer confirmed this, ALD require to actually be named in the policy. They wont accept the usual generalised leasing wording. I'm finding insurance companies not over willing to amend their standing wording to accomodate this. I'm sure there must be some who do, I just need to find a few of those.

Yes agree with the points about insuring once the car actually has its DVLA registration setup, its just some companies (or their call centres) seem to be a bit wooly on this point and "frozen" until they have the registration and can reference it. Hopefully they will still honour any advance quotes.

Update: I have now found a couple that will name the lease company, so just seemed random I must have initially contacted ones who wouldn't.

flashg67

I've used quote me happy for my last 3 lease cars and never had an issue putting a lease company as the owner & RK

MyRealNameToo

https://forums.moneysavingexpert.com/discussion/comment/81916523#Comment_81916523

But did they explicitly name who the lessor was or just generally state its owned by a finance company?

chuffinnora

Well I tried a further 6 insurance companies today. No problem getting a quote for a private lease car. Big problem getting the lease company actually named on the policy. None of them would do this. They wont deviate from a standardised baseline policy. 1 or 2 will send an email highlighting the lease company as legal owner/RK or add it to a covering letter, but not the policy.

Kia dealer now looking into this ALD T&Cs, and changed to an alternative lease company, who's T&Cs dont have that requirement.

They are left slightly confused about the customers prior to me using this, but they never actually checked any of their policies. If it is indeed an issue, its between the leaser and leaseholder.

flashg67

https://forums.moneysavingexpert.com/discussion/comment/81916810#Comment_81916810

From memory I just had to select 'private leasing company' from the options. You could run a quote on their site and see if it works for your situation?

flashg67

I'm sure my Puma was with ALD and I used quotemehappy for that vehicle. I wonder if I'd have come unstuck if I'd had a claim!?

I've checked both my recently departed Nissan and my new Mazda contracts and all I can see is that they must be insured fully comp, that's all I can see.

Penelopa.Pitstop

For future reference, Admiral puts the name of leasing company on insurance documents. They must started doing it from around 2023/2024, because I didn't have it on previous policies. They specifically asked who's the owner and put the name in special field on the forum.