How to insure a leased car correctly?

8 min what to look out for in a leasing contract and which insurance is indispensable for unadulterated driving pleasure, you can find out here.

A monthly rate and a trendy new car every three or four years – leasing is no longer only interesting for companies or the self-employed, but also increasingly for private individuals. the advantage is obvious: instead of a large purchase sum or financing, lessees ideally pay manageable monthly installments. But how does it look with leasing with the protection by the car insurance? Does a lease rate automatically include insurance?? When do i need GAP insurance? Answers to these and other questions can be found here.

What does car leasing actually mean??

The word leasing comes from the english and is translated as "to rent, to let". Who therefore leases a vehicle resp. rents, uses it, but does not own it. A lessee is usually entered as the keeper in the vehicle registration document, but the vehicle title remains with the lessor (leasing company, bank) as the owner.

the monthly "rent" to be paid depends on the model and the equipment of the vehicle. As a rule, the leasing contract is concluded for a period of two to four years, after which the car is returned. But if you are so fond of the leased car that you want to keep it, you can usually buy it for the calculated residual value.

Important:

Experience shows that the residual value is not the same as the purchase price. If you want to buy the vehicle after the end of the lease, you may have to. Expect a higher price.

What is important in the leasing contract?

Basically, leasing contracts come in different forms: mileage leasing is of interest to drivers who want to increase their annual expected mileage (e.g.B. 10.000 km or 15.000 km) can estimate well. This is the basis for the monthly rate.

In the case of residual value leasing, on the other hand, the lessor estimates the value of the vehicle at the end of the contract period. In this case, the assumed loss in value over the term of the loan is the amount of the leasing installments.

Other important aspects:

  • In the case of high-priced vehicles, a down payment – a one-time payment based on the new value of the car – is often added to the monthly leasing installments. the higher the down payment, the lower the installments. But be careful: the down payment does not replace the residual value payment after the end of the contract.
  • Cost considerations should also include whether expenses for minor repairs, oil changes, or annual inspections are part of the lease payment or whether the lessee organizes and settles these individually.
  • as a rule, early termination of a leasing contract is not free of charge. exception is a contractually agreed special right of termination, but this must be explicitly stated.

Is vehicle insurance part of the leasing contract??

for the conclusion of a leasing contract a motor vehicle liability insurance and mostly a comprehensive insurance are a prerequisite. The cost of the premiums must i.D.R. To be borne by the vehicle owner. If nothing else has been agreed upon, the leaser can take care of a good and favorable car insurance for his leased car himself. From time to time, there are also combined offers where partial or fully comprehensive insurance is already included in the monthly rate. However, it is worth asking exactly what services the contract actually includes and compare prices.

The top 10 most popular leased models 2019

  1. VW golf
  2. Seat leon
  3. Ford kuga
  4. Seat ibiza
  5. VW polo
  6. Fiat 500
  7. VW arteon
  8. BMW 5 series
  9. Renault kadjar
  10. Audi A6

Is motor vehicle liability insurance sufficient for leased vehicles??

No, a motor vehicle liability insurance alone is usually not sufficient. A leased vehicle must have at least partially comprehensive insurance, but many lessors insist on fully comprehensive insurance in the contract. This offers all-round protection, for example in the event of a total loss. Fully comprehensive insurance covers virtually all damage to your own car. Although it is more expensive than a partially comprehensive insurance policy, it offers significantly more benefits in terms of claims settlement. Comprehensive motor insurance also covers accidents caused by the driver and vandalism. In addition, the partial casco is already included in the fully casco insurance.

Do I need GAP insurance for a leased vehicle??

In the small print of the leasing contracts it is often stated that the user assigns all claims against the insurance to the lessor. With this addition, many lessors want to ensure that they get their money in the event of a claim. In addition to the partially comprehensive or fully comprehensive insurance, a GAP insurance (engl. Gap) possible: in the event of theft or total loss, the lessee is not left with the difference between the replacement value and the residual lease amount. For leased vehicles in the more expensive mid-range and luxury classes, this amount can quickly run into the thousands. Therefore, an additional GAP protection within the insurance contract is highly recommended.

Example:

Let’s assume that after a total loss, the residual lease amount of your leased car is 20.000 euro and the replacement value is 16.000 euro. This would result in a difference of 4.000 euros, which, however, you do not have to pay yourself if you have taken out GAP cover.

*information about the calculation example "from 8,63 €/ month": calculation example for: smart fortwo 1.0 coupe (HSN: 1313, TSN: AHM), self-financed, initial registration 2015, year of purchase: 2015, registered in PLZ: 26871 (papenburg), mileage: 5.000 km/year, use: exclusively private, owner: VN, driver: VN (age 54 years/driver’s license since 36 years) and further driver (age 52 years/driver’s license since 34 years), employed, no residential property, parking place: street, married, SF-class KH/ VK: SF 36 / SF 36 excess VK/ TK: 500/ 150 €, no pre-damages, payment: yearly direct debit, workshop binding, insurance start: 05.01.2021, rate incl. Comprehensive insurance, classic product line. The figure of 8.63 €/month refers to the calculated annual premium of 103.60 €, which was broken down into 12 months. Status: 2021

What to do if the leased car is totaled?

The lessee must inform the insurance company and the lessor of the existence of a total loss.B. Inform immediately after an accident. A total loss can entitle the lessor – depending on the modalities of the policy – to dissolve the contract if the vehicle can de facto no longer be used.

GAP insurance, as explained above, covers you in the event of a total loss and reimburses the difference between the replacement value and the lease residual amount.

And what happens if the leased car is stolen??

Not a nice situation: leaving the house in the morning unsuspecting to go to work and then the shock, "where is my car?? I put it here yesterday!". If you are certain that your leased car has been stolen – it doesn’t hurt to make sure it hasn’t been borrowed by another family member – you need to act immediately.

It is important to report the theft to the police and to notify the vehicle insurer. In addition, the theft should be reported to the lessor as soon as possible. In the event of theft, GAP insurance replaces i.D.R. again, the difference between the replacement value and the residual lease amount.

Whether you’re leasing or buying a car, having the right insurance coverage makes driving more relaxed. Calculate your rate now with our online rate calculator and switch to verti – germany’s second-largest direct car insurer! Do you have any questions about our rates or would you like a personal offer?? Then you can reach us by e-mail or by phone on 030 – 890 003 003 – in the event of a claim, of course, around the clock.

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