Are you the kind of person who prefers things to be simple? Do you like the idea of all your car-related costs wrapped up in a neat monthly payment bow? A car leasing with insurance scheme could be the best deal for you.
Leasing PCH (Personal Contract Hire) is the easiest way of driving a new car. It works much in the same way as renting. Hand over an initial payment, pay off the monthlies and before you know it the contract is up and it’s time to search for a new car again.
Most leasing deals don’t come with insurance. However, leasing a car with the insurance bundled in is becoming popular with individual leasing companies and large car manufacturers alike.
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Car manufacturer leasing with insurance
A few carmakers are offering all-in-one leasing deals. The manufacturers often refer to this as a subscription service.
>> Read our guide to car subscription services
One example of a car subscription service is Care by Volvo. This bundles the cost of a new Volvo, maintenance, and roadside assistance into one monthly fee. Insurance can be added into this bundle.
There are no deposits/initial payments – but the prices you see advertised are generally sans insurance.
Cars start from around £470 per month (without insurance) and generally over the course of a two-year PCH deal it works out as more expensive than sorting all of the elements out yourself. You are paying for the convenience of Volvo doing it all for you – but it is by far and away one of the simplest and most flexible leasing systems out there.
Car leasing with free insurance
Leasing with free insurance, especially for young people, is hard to find. Most leasing companies will not offer free insurance.
There are a few specialist finance companies out there that offer cars with free insurance if you take up a PCP deal.
Although marketed as ‘free’ it’s essentially just a bundled price for your PCP deal and insurance together. It’s always worth shopping around for insurance deals to see if you can pay less by buying insurance separately.
Peugeot’s Just Add Fuel offer isn’t strictly leasing, but it’s worth mentioning in this list. Just Add Fuel covers everything you need, except for fuel.
It’s a 37-month PCP (Personal Contract Purchase) agreement at 4.9% APR and includes three years’ insurance, three years’ car tax, three years’ warranty, three years’ roadside assistance and three years’ routine servicing.
Car leasing with insurance for used cars
You’re really clutching at straws here, and it’ll be pretty much impossible to find insurance bundled into a used car leasing deal.
This is because leasing is most common with new cars. If you’re after a used car, PCP can offer a simple solution. With PCP you don’t need to buy at the end of the agreement, so it can work much in the same way as a lease.
Car leasing with insurance and maintenance
If you like the idea of bundling leasing, insurance, maintenance and servicing, there are plenty of options out there.
Some independent leasing companies will offer servicing and maintenance packages along with the cost of the car and insurance. Organisationally it’s one of the simplest ways to drive a new car – pay one monthly direct debit and sort out your own fuel.
As mentioned above, Volvo’s Care by Volvo fits the bill for this kind of thing if you’d prefer to deal with a manufacturer directly.
‘Fully maintained’ deals generally include:
> Breakdown cover
> Servicing
> Replacement tyres
> MOTs
No deposit car leasing with free insurance
Leasing with no deposit works differently to regular types of leasing. Generally, instead of paying an initial payment, you split this cost between your monthly payments.
The easiest way to remember this – the lower the initial payment, the higher your monthly payment.
No deposit car leasing deals with free insurance are few and far between. Volvo’s scheme, mentioned further up, doesn’t involve any initial payment, but you do need to pay for the insurance.
Some schemes from private companies do combine no deposit with ‘free’ insurance. But these are generally just an all-in-one kind of payment, rather than actually offering anything for free.
This is certainly an easy way to drive a brand new car – but is rarely the cheapest. Get insurance quotes and compare deals with and without insurance.
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