"Most lease agreements include an annual mileage limit, which is typically around 10,000 a year on average. Make sure you set your mileage accurately to match the leasing contract when you get your quote. If you go over your agreed mileage you may face extra charges from your leasing company."
What our expert says
Do I need GAP insurance for my lease car?
A GAP insurance policy can help bridge the gap between the value of the car and the amount the insurer pays out if your car is written off.
If your leased car is stolen or declared a total loss following an accident, insurers only pay out the current market value of the car. If this is less than the outstanding finance on your leasing agreement, you're left paying the difference.
There are 3 main types of GAP cover suitable for leased cars:
- Contract hire GAP insurance
- Vehicle replacement GAP insurance
- Return to invoice (RTI)
- Contract hire GAP insurance pays the difference between your hire car insurer’s settlement sum and the outstanding finance owed on the car.
- Vehicle replacement GAP insurance is a more comprehensive and typically more expensive form of protection. This cover option pays any outstanding finance owed on the lease deal. It also pays for a replacement vehicle of the same specification, age and mileage as the one that needs replacing.
- Return to invoice (RTI) is suitable for cars that were leased brand new. It pays the difference between the insurance payout and the original value of the car. If your car is declared a total loss, the difference between your insurer’s payment and the cost of your vehicle when you bought it is covered, including any outstanding finance.
Need more help?
Is breakdown insurance included with lease car agreements?
Breakdown cover is often included with new lease car contracts, but it depends on the deal you choose. There may be limitations on the level of cover included, so it's worth checking you have the right cover that suits your needs.
You can compare breakdown cover with us and buy a stand alone policy if it's not included in your lease agreement.
Can someone else drive my leased car?
You can add drivers to your car insurance policy on a lease car, allowing them to drive you car. But the main driver must be listed as the policyholder, otherwise you may be accused of fronting, which is a type of insurance fraud.
Drivers who aren't named on your policy may still drive your lease car, providing they have their own insurance policy with driving other cars cover included. Just bear in mind that most policies will only allow drivers to drive other cars in an emergency. So be aware of exactly what you're covered for before getting behind the wheel.
Types of car insurance
Car insurance guides
Page last reviewed: 01 February 2024
Reviewed by: Louise Thomas