Car insurance: its price following long-term rental

Long-term rental and rental with purchase option offer many advantages to take advantage of a recent model whose cost of purchasing new does not necessarily correspond to your budget. We invite you to discover how to insure a leasing vehicle.

What is a car leasing? 

A definition of leasing

Le lease is a vehicle rental contract in the form of monthly rentals for a period varying from one year to five years. Leasing brings together three parties:

– An individual wishing to purchase a vehicle;
– A car manufacturer owning the vehicle;
– A banking establishment in charge of financing.

The individual pays a monthly lump sum for the use of the vehicle, of which he is not the owner. Several data are used to calculate the amount of rent:

– Value of the vehicle;
– Annual mileage in the contract;
– Rental duration.

To these elements can be added included services such as auto insurance and vehicle maintenance. To obtain accurate insurance quotes that meet your needs, discover the LeLynx.fr insurance comparator. For an LOA lease, the average price observed for have car insurance was 819 euros in 2024 according to their latest study. Please note: an important difference with the rest of the auto insurance for vehicles that were purchased using other payment methods. If you buy a car outright for example, the average price of your car insurance will be, according to LeLynx.fr, €767, or €50 less.

LOA leasing

La LOA, rental with option to purchase, operates on the same contractual bases as an LLD contract. Some differences remain fundamental. A contribution representing approximately 15% of the price of the vehicle is requested upon signing the contract. The purchase of the vehicle is offered at the end of the contract. Otherwise, it is returned to the lessor. Maintenance and support services are generally not included as part of a LOA.

LLD leasing

La LLD, long-term rental, involves renting a vehicle for a fixed period in return for paying a monthly rent. Maintenance, assistance and repair of the vehicle in the event of a breakdown are included in the rental contract. The vehicle usage rate is determined in the contract.

In LLD, the rental period is between 24 and 48 months but sometimes extends beyond 60 months. Mileage ceilings are associated with the rental period. If exceeded, incremental penalties may apply. At the end of the LLD, the vehicle is returned to the dealership with the aim of being resold as a used vehicle. It must be returned in a state of wear consistent with the contract.

Who insures a leased car?

The obligation to insure a rolling vehicle

Car insurance is compulsory for all types of vehicle purchases: purchase of a new or used vehicle, purchase under LOA or LLD. According to data from the comparator LeLynx.fr, more than 10% of their users, in 2024, had a rental car with an option to purchase. Remember that vehicle insurance is compulsory for motorized vehicles traveling on public roads. There third party formula is the minimum level to insure a vehicle. It provides compensation for material damage and bodily injury in the event of an at-fault accident caused by the driver.

Insuring a leasing vehicle: the responsibility of the individual

For a leasing purchase, the driver is required to take out car insurance. In the context of leasing, it is the name appearing on the registration document which provides information on the vehicle's insurance holder. It is not the car garage or the credit institution that insures the vehicle. The monthly insurance payment must be added to that of the leasing. It is important to take this information into account when you have the project to acquire a vehicle under LOA or LLD. Depending on the dealership, the selected contract must include certain protections. The third-party formula is generally not enough to insure a leased car.

Choose the rental company’s insurance

A concession, identified as the rental or lessor, offers in most of its leasing contracts an insurance contract. It insures several vehicles in its leasing fleet with the same insurer. This strategy allows it to negotiate certain advantages for its customers.

The use of a vehicle acquired through leasing (LLD or LOA) requires the driver to take out car insurance. The contract must have the minimum guarantees required by the rental company. Using an online car insurance comparison tool is an excellent solution for insuring your city car or branded sedan.

What insurance should I choose for a car purchased through leasing?

In addition to the requirements of your rental company, the choosing insurance for your car acquired through leasing depends on your daily constraints. The price varies depending on several criteria: the model and characteristics of the vehicle, the method of acquisition, your personal situation, the use of the vehicle and the geographical location.

To conclude, it would seem that having a rental car would have advantages, but the car insurance criterion is not one of them. In order to still find the best insurance for your vehicle, a online comparator offers the opportunity to produce several car insurance quotes simultaneously, including various insurance companies. Enter precisely all the information relating to your vehicle, particularly in terms of acquisition, and you will have insurance with the best guarantee-price ratio.

NOTES

(1) The data collection methodology is as follows: the results were obtained on a significant sample of auto insurance premiums clicked by users LeLynx.fr over the period from 01/01/2024 to 08/08/2024.