The price of auto insurance is set based on several criteria to determine the level of risk presented by a customer.
This concerns the characteristics of the car, its
value, the driver's experience behind the wheel, the parking method adopted and
the guarantee formula chosen. Thus, there should not be a big difference
between car insurance for leased cars and classic car insurance. But given the
nature of leasing, lessors tend to require additional guarantees which have the
effect of increasing the price of the cover.
How
are car insurance rates established?
Auto insurance is insurance intended to cover claims
relating to the insured vehicle, whether it is an accident, breakdown or theft.
As it is a product intended to provide the insured with financial compensation
following damage, its cost is normally commensurate with the risks incurred.
Thus, to determine the price of car insurance, insurers refer to a certain
number of parameters. To begin with, the insurer will take into account the
parameters related to the vehicle itself. Indeed, there are vehicles which
present more risks than others, in particular powerful vehicles. In recent
years, electric vehicles are considered the safest, which allows them to
benefit from cheaper insurance. However, these are not the only criteria
determining the cost of auto insurance.
Driver experience and background also come into play
in pricing. An experienced driver who has never experienced any claims will be
entitled to a lower insurance premium than that of a young driver, a malussed
or terminated driver. The number of drivers mentioned on the insurance contract
is also likely to influence the price of the cover. In addition, the criteria
linked to the insurance itself will make it possible to define its price. We
are talking in particular about the guarantees included, the deductible and the
reimbursement ceilings. Insurance offering full coverage will necessarily be
more expensive than basic insurance. In view of all these elements, we can
therefore conclude that insurance for a leased car should not be less expensive
than conventional insurance for the same car and the same circumstances (more
info on this leasing guide) .
Leasing
insurance and classic car insurance: what are the differences?
There are two notable differences between car leasing
insurance and classic car insurance. On the one hand, classic car insurance is
taken out with an independent insurance company, offering offers adapted to
each customer. As far as car lease insurance is concerned, the cover is taken
care of by the lessor himself through partner organizations, particularly in
the context of long-term rental. However, the customer is able to decline the
offer of his lessor to take out car insurance with an external organization. On
the other hand, leasing insurance must normally present several guarantees to
reassure the lessor.
Indeed, as the vehicle remains the property of the
lessor, he will impose on his client the subscription of a complete formula.
Moreover, the customer also has an interest in taking out good insurance
coverage if he does not want to bear the repair costs himself in the event of a
claim. But if car leasing insurance is different from classic car insurance, it
is because of the financial loss guarantee. This cover takes over from the
insured by settling the entire leasing contract after a claim resulting in the
total destruction of the vehicle. Including such a guarantee in leasing
insurance is likely to considerably increase its price compared to that of
conventional car insurance.
Less
expensive leasing insurance: how to benefit from it?
To benefit from the most advantageous car lease car
insurance, the best method is to compare the offers of different insurers.
Indeed, insurance prices vary from one organization to another and there is a
better chance of finding the ideal offer by comparing them. To save time and
avoid contacting insurance companies one by one looking for a personalized
quote, it is possible to go through an online insurance comparator. This tool
will be able to facilitate the process by pooling requests for quotes. All you
have to do is fill in the dedicated form with your personal information and the
request will be sent to the partner organizations.
They will respond with an insurance proposal close to
what you are looking for and it is from these proposals that you will make your
choice. Generally, one is tempted to choose the cheapest offer in these cases,
however, it is necessary before think about the protection that insurance
provides. Poor coverage will leave most of the repair costs to you, which will
deprive the insurance of all its interest. Also, it is advisable to check the
guarantees and the conditions of compensation before opting for a given
proposal.