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Car leasing: am I insured by my credit card?

Subscription to a car leasing contract can be very interesting. Leasing is very popular with businesses and formulas for individuals tend to develop. By opting for an auto leasing with insurance, you avoid spending a large amount in one go.

In fact, you pay fixed monthly payments, sometimes including, depending on the contract, various insurance and services. But in case of an accident with this car leasing, are you well insured?

What is car leasing or leasing?

The car lease or leasing contract is an alternative to car loan, where you pay extra to have the comfort of insurance already paid and other possible services. This contract also offers you a call option at maturity.

As part of a car leasing, we will generally talk about operational leasing. This implies that the vehicle remains entirely the property of the car leasing company. The tenant pays a monthly fee to enjoy additional services and not having to worry about anything. The leasing company is therefore, among other things, obliged to offer car insurance. In parallel, it can offer breakdown service and glass breakage insurance.

The car leasing contract may also offer a call option at the end of the contract, if however the customer wishes to purchase the vehicle. This option must be worth more than 15% of the purchase price of the vehicle.

You can also opt for a financial lease that is actually a term sale. In this case, as a user of the vehicle, you will have to bear the costs and risks. This means that you will have to take care of yourself. The purchase option at the end of this car lease may not exceed 15% of the purchase price of the vehicle.

What is covered by insurance in a car leasing contract?

When you take out an operational leasing contract, it will almost always be a new car. All cars must be covered by liability insurance. This insurance will therefore be part of your lease.

Good car insurance protects the insured against the risk of liability. It covers the physical and moral damages caused to others, but also the material damage caused by the insured.

Know everything about the car loan

In addition to legally binding Good insurance for vehicles, most of the leases have an omni insurance (“all risks”). This is not mandatory. The conditions of the omni insurance must be contractually determined and will depend on the desired modalities by your insurer. There are three different covers that can be included with an omnium insurance:

  • The material or personal damage to your vehicle: this form of insurance concerns the damage and damage that has been caused to your vehicle (accident, vandalism, fall …) whether you are at fault or not.
  • Fire and theft: This form of insurance provides compensation for damage to the vehicle following a fire, theft or attempted theft. It can also be extended depending on insurers to damage caused by fire (explosions …).
  • Breakage of windows, natural elements and animal strikes: as its name suggests, this insurance provides compensation for broken windows (windshield front / rear, side windows). In addition, it also covers damage caused by natural elements (such as storms and hail) as well as those caused by animals.

In addition, it is important to check that a driver insurance is concluded. This covers the driver against bodily injury and their after-effects, even if he is responsible for the accident, since he will not be able to use his liability insurance in these circumstances.

There are non-compulsory supplementary insurance such as legal protection and assistance. The first offers you legal advice and, if applicable, pays legal costs in case of disputes following an accident. The second assists you in case of immobilization of your car, even if it is not following an accident.

What happens if my car suffers damage?

If your car suffers damage, its repair is provided by your car auto insurance. In the event that the insured is at fault or the damage was caused by the fault of an unknown third party, the deductible will be post by the insured (release amount at the expense of the insured, not compensated by the ‘insurance).

The amount of the deductible under a lease is not fixed and is determined in the contract. Do not hesitate to check it for information also on the duration of your commitment, rates and insurance rules included.

Feel free to compare financial institutions to find the auto loan that suits you best.