There are quite a few common misconceptions about leasing, and one of those is that the only person that can drive a lease car is the one who is leasing it.
However, it’s our job to put these misconceptions right and explain that this in fact, is not the case.
So, in this article, we are going to look at whether someone else can drive a lease car, whether someone else can be insured to drive your lease car, and how to go about it.
Who can drive my lease car?
Anyone can drive your lease car. Within reason, of course. They have to have a valid driving license and they must;
- Have permission from the person or the company named on the lease
- They are on said person’s insurance
- Or, they have their own comprehensive insurance which means they can drive a lease car not in their name (and still be comprehensively insured and not 3rd party)
So if any of the above apply, then they are free to drive your lease car. Of course, we recommend that you exercise caution. Letting your 18 year old drive your brand new BMW probably isn’t the best idea.
How can I insure someone to drive my lease car?
Adding someone to your insurance is pretty easy.
All you have to do is ring your insurance company and tell them you want to add them to your insurance plan. They’ll allow you to do this on either a temporary or permanent basis. They will then calculate the additional cost as they would with any other insurance. Once you pay that they are insured and free to drive your lease car.
There is a limit on how many people you can insure on your insurance, many search engines only let you add three extra motorists when you search for online quotes. So, it’s best to check.
Which lease options allow for other people to drive my lease car?
Any lease or finance option allows for another person to drive your lease car. Insurance isn’t included in the lease price, and therefore isn’t included in the lease price.
However, if you have a business lease contract then you will probably need to notify your company that there will be another person driving your company car. Each company will have their own rules regarding the matter so it’s best to check with them. Again, you’ll want to make sure that you trust the person you’re going to insure on the vehicle, particularly as it is a company car.
What are the pros and cons of insuring someone else on my lease car?
Is there even any point to insuring someone else on your lease car? Let’s have a look at the advantages of insuring someone else on your lease car;
- It’s convenient
- Insuring your significant other on your car just makes sense, regardless of whether it’s a lease car or not. It doesn’t even have to be a significant other, just anyone who you think will be driving your car often. If you would insure them on your car if you bought it and owned it, then there’s no reason why you shouldn’t insure them on your lease car.
- It’s simply one less thing to worry about
- If you insure your significant other on your lease car then you won’t have to worry about a scenario in which they can’t drive your car. It takes the pressure off having two cars for one thing, and you can both take it in turns if you are driving long distances. It’s the more logical decision.
However, there are some disadvantages that you should know about;
- It’s still a risk
- Accidents happen, and it’s not ideal if your lease car is in an accident and you aren’t the one driving. Of course, we know that you trust the person driving it, but it is something to think about
- It will drive the cost of your insurance up
- Insuring another person on the car will put your insurance up. Don’t forget, the insurance has to be fully comprehensive which is more expensive than your standard third party insurance.
So there are some of the disadvantages to insuring someone else on your lease car.
How much will it cost for more than one person to drive a lease car?
If the person who wants to drive your lease car already has fully comprehensive insurance that allows them to drive any car (and have comprehensive insurance on your car not 3rd party), then it will cost you nothing at all.
However, if you want to put them on your insurance, then this will cost you more. We can’t say how much it will cost because it depends on a number of different variables. We do know that it will cost more than insuring one person, and it will have to be fully comprehensive.
Some finance houses have deals with insurance companies and this could be an option you want to consider. It won’t be built into your lease contract, but it means you’ll be doing everything in one place which some people prefer. However, this doesn’t mean that it will be cheaper. If you are looking for the best deal, we recommend shopping around. Vehicle brokers tend not to be accredited to discuss insurance so if they do try to sell you insurance, make sure they are FCA accredited to do so. For more information you can read our article here.
What happens if the person driving my lease car gets penalty points?
Look, it happens, and there could be a chance that the other person driving your lease car will get penalty points.
But getting penalty points on a lease car is the same as any normal car so the points will go to the person driving. However, the fine will be delivered to your lease company because they are the registered keeper (you can read more about registered keepers here). They will tell the authorities that they are just the lease company and they will then write you to. You will then have to tell the authorities that it wasn’t you and they will write to the person who was driving. The lease company will normally charge an administration fee of about £25, however.
This is why it’s so important you know who is driving your car at all the times.
When it comes to your insurance, the points will only be accounted for when the person who gets the points renews their policy. They don’t accounted mid-term. After that, the price will probably rise.
Can I finance a car without being on the insurance?
This is a question we get asked quite a bit because there are many people who want to lease a car for their significant other or their child but won’t be driving it themselves.
Currently, the person financing the lease has to be named on the insurance policy because they are the ones that have financial interest in the car. Some companies will allow someone else to be the policy holder but this isn’t always the case and you will have to check. You do need to make sure you make satisfactory enquiries with your insurance company to make sure you are fully insured depending on where you are named on the policy. Also, make sure you have it in writing, not just a verbal conversation.
The best thing to do would be to get the other person down as a main driver. You will still be on the policy but as a named driver and instead your child or significant other or whoever you are financing will be the main driver on the insurance policy.
It should be noted that it is usually the policy holder that will build the no claims bonus. However, if you explain to the insurance company there may be a chance that they will take into account that the main driver isn’t necessarily the one on the policy. You will have to talk to your insurance company first though.
Always make sure you read everything and talk to an insurance expert before signing anything. There can be times where people are unsure about the main driver/named driver business so if you are in doubt don’t hesitate to ask them.
Hopefully this has cleared a few things up about someone else driving your lease car. We’ve said this quite a bit but it’s worth stressing again; make sure you trust the person driving it. You’re the one with the financial interest in the car, so you need to make sure that whoever is driving it will take care of it.