Does Car Finance Include Insurance?

Buying a car can be expensive, so it is no wonder that a lot of people buy cars on finance. However, there are a lot of different aspects to car financing, and one of the most common questions that people are left with is one we will look at – Does car finance cover insurance?

There are multiple ways to find the information you need about car financing deals, but one of the quickest is to use our simple car financing quote comparison tool, which lets you compare different insurance providers and insurance policies.

Does car finance include insurance?

Sadly there is no simple yes or no answer to this. Some car financing deals will include insurance but some will not. This is why it is so important to properly consider all the options you have for car finance and run thorough comparisons.

Is it more expensive to get insurance with finance?

Yes, quite often it can cost more to get car insurance included with your finance plan. This is why it pays to shop around and find the best deal for your needs.

Why get insurance with finance?

It can be simpler for a lot of people to get car insurance with their car finance deals. This means that you only have one simple monthly payment rather than multiple payments each month.

What happens if you get into a car accident while on finance?

If you are involved in an accident while your car is on finance, you follow the same procedure as with any other car accident. You would need to get in touch with your car insurance company, whether this is your financing company or a different company, and follow the car insurance claim. This means you still have to pay the excess on your insurance policy. Depending on the arrangement you have with your insurer it may possible to use your insurance payout to cover any outstanding balance on your finance agreement.

What kind of insurance can I get?

Most commonly, when you finance a car, you will be getting fully comprehensive insurance. Sometimes this is a requirement of the car finance agreement. Fully comprehensive insurance gives you the most coverage in case of an accident, whether you are at fault or whether another party is at fault.

What does comprehensive mean for car insurance?

Comprehensive car insurance is when you are covered for all the most common incidents with cars. This includes third party liability, fire, theft, and other road accidents. You can often add on the additional cover such as windscreen cover, legal cover, or breakdown cover.

What do I do if I don’t want insurance with my finance deal?

If you want to get separate insurance, you can buy an insurance policy for your car from a different organisation. There may be limitations to the type of insurance you can have – for example, you may be required to have full comprehensive insurance. Buying separate insurance means you can compare insurance providers to find the best insurance for you, giving you a chance to save money.

This article is intended as generic information only and is not intended to apply to anybody’s specific circumstances, demands or needs. The views expressed are not intended to provide any financial service or to give any recommendation or advice. Products and services are only mentioned for illustrative rather than promotional purposes.