When you're looking to lease a new car, there are many important factors to consider—and one of the most crucial is arranging car insurance. The issue many people face, however, is just how expensive insurance can be. Recent industry figures show that the average price for a comprehensive policy is now £815!
With that in mind, it’s no surprise that so many people are eager to find ways to reduce their car insurance costs. While your premium will always depend on your personal circumstances, there are several ways to bring that number down. Here's how.
1. Think About the Car You Lease
One of the biggest factors that affects the cost of your car insurance is the vehicle itself. Insurers take into account:
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The car’s value
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Engine size
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Manufacturer and model
A general rule of thumb: the smaller and less luxurious the car, the lower your insurance cost is likely to be. So, if you want to keep your premium low, consider choosing a smaller vehicle from a mainstream brand with a modest engine size.
2. Make Security a Priority
Adding security features to your car can lower your premium. Insurers are more likely to offer cheaper cover if your car is harder to steal or damage.
Most vehicles manufactured after 1997 are already fitted with an alarm or immobiliser, but you can go one step further by installing a tracker or additional security systems. These upgrades help reduce the risk of theft—and in turn, your insurance cost.
3. Keep Owner and Driver Details Simple
Insurance quotes tend to be higher when the registered keeper and main driver are different people. While this might seem like a rare situation, it’s actually quite common—especially in families or for company-leased cars.
If possible, make sure that the owner, registered keeper, and primary driver are the same person. This simple step can significantly reduce your premium.
4. Be Honest About How You Use the Car
How you intend to use the car plays a major role in determining your premium—and what your insurance actually covers.
If you state that the car is for “social use only” but then get into an accident while driving home from a work meeting, your claim could be rejected. On the other hand, business use coverage usually costs more, so only select it if you really need it.
5. Choose the Right Type of Cover
There are three main types of car insurance:
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Third-party – Covers damage to others, not your own car
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Third-party, fire and theft – Adds cover for your car being stolen or catching fire
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Comprehensive – Covers all of the above, plus damage to your own car
Many assume third-party is always the cheapest option—but this isn’t always the case. Some insurers may offer more competitive pricing on comprehensive cover, especially for low-risk drivers.
Tip: Always compare all cover types. The cheapest option may not be the most basic one.
Bonus Tip: Keep Your Driving Record Clean
Finally, keeping your licence clean—with no penalty points or driving convictions—can make a big difference to your insurance cost. Insurers reward safe drivers with lower premiums, so it's always worth driving responsibly.
Conclusion
Car insurance doesn’t have to break the bank. By choosing the right car, enhancing its security, understanding how to list drivers and usage, and selecting the most suitable cover, you can save hundreds of pounds each year.
Want to lease a car with insurance costs that won’t make your eyes water? Browse our latest car leasing deals today and find a model that fits both your lifestyle and your budget.