Maintenance and Insurance for Car Leasing Explained

mechanic fixing a lease car in a garage
mechanic fixing a lease car in a garage

With personal and business leaseagreements you'll have the option to purchase a maintenance package as part of the contract. Maintenance packages are an additional cost to the monthly fees you pay for the duration of the lease and will cover the maintenance, servicing and repair of the lease vehicle. This is only an optional extra, so if you can alternatively choose to take a ‘customer maintained contract’ in which you’ll be responsible for servicing the car and financing any repairs yourself. 

Car leasing maintenance packages - what's included

The level of cover provided by a maintenance package will vary depending on the leasing company. It will generally cover wear and tear on tyres, brakes, engine exhaust and wipers, meaning if any of these break or become damaged will one lease you can organise to have these repaired at no additional cost to the package.

They won't cover repairs or replacements required because of accidental damage. 'Fair wear and tear' guidelines are commonly used by leasing companies to outline repair and maintenance that they deem to be acceptable and not the result of improper driving. These guidelines can also be used to settle any extra costs incurred by the lease holder at the end of contract if there has been unacceptable damage caused to the vehicle.

In addition to fair wear and tear, maintenance packages for lease agreements will cover vehicle servicing and MOTs as standard. These are important to maintain the vehicle’s warranty so it’s important that the lease vehicle is still serviced under a ‘customer maintained contract’. 

Who pays for repairs on a lease vehicle?

Maintenance packages can be bought from the leasing company at the time you are arranging your car lease. If you opt into one you will be provided with documentation on what’s included in the package and how you can book a service or any other maintenance and repair works. These will usually be done through a manufacturer approved dealership or associated franchise.

Maintenance packages are an additional cost that will be factored into lease monthly instalments. If you don’t require any cover for maintenance than you can ask for a quote without it. This will mean you will be responsible for organising and financing any services and maintenance works required by the lease vehicle, which can be covered either through your insurance or your own pocket.

Finding a car lease with maintenance included

At Stoneacre Leasing you can use our interactive leasing calculator to add maintenance packages to your contract hire and compare the cost against a customer maintained contract. You can also choose from hundreds of lease deals for both business and personal leasing and customise your lease contract to suit you and your budget.

Does car leasing include insurance?

Insurance is not included in car leasing contracts as standard, but it can be an option to take out an ‘insured lease’ that includes fully comprehensive insurance for a leased car. The insurance premium is then factored into the cost of the lease agreement and you’ll pay this off through the monthly payments.

If the leased vehicle is not insured through your contract you will need to organise and finance insurance cover yourself like with any other vehicle. The lease contract will require you to take out fully comprehensive insurance that will cover the cost of the car if it is written off or stolen. For personal contract hire (PCH)agreements, the person who is taking out the lease must be either the main policy holder or a named driver on the insurance certificate.

How much is car insurance on a leased car and how does it work? The process doesn’t change if you are insuring yourself on a leased vehicle. Insurance premiums are still calculated based on factors like the insurance group of the vehicle, the driver’s profile and the type of policy being purchased. If the lease vehicle is in a higher insurance group than it will be more expensive to insure, so bear in mind the cost for insurance when leasing a car.

GAP insurance(Guaranteed Asset Protection) is a type of insurance specifically for leased vehicles that guarantees financial protection if your car is stolen or written off. GAP insurance will pay out the difference between your insurance settlement and the remaining balance on your finance agreement. Or it will cover the cost between your insurance pay out and the net cost of the leased vehicle. 

Stoneacre Total Care

At Stoneacre Leasing you can find personal and business car leasing deals with insurance and maintenance included, plus deals on lease cars with insurance included. Our Total Care package combines vehicle insurance, servicing, maintenance, road tax, breakdown cover and tyre repairs into one single package at a fixed monthly cost.

Stoneacre Total Care guarantees that your lease vehicle is well looked after and that you have the peace of mind knowing you only have to finance a fixed rate, meaning you can forget unexpected maintenance worries and servicing issues. Your cover will start as soon as your car has been delivered and your Total Care fees will be consolidated with your monthly leasing fees.

When your car requires maintenance it will be serviced by manufacturer approved engineers who will work to reduce your downtime and get you back on the road as quickly as possible. Your Total Care cover will also include an insurance cover, including third party liability cover, own damage protection and total loss shortfall protection.