Does Business Car Leasing Include Insurance?

When it comes to business car leasing, the fine print can make all the difference.

One of the most common (and critical) questions we get is: “Does business car leasing include insurance?” The answer? It depends on the provider and the type of lease.

Some business car leases come as “fully comprehensive,” while others leave insurance entirely in your hands.

What Is Business Car Leasing?

Business car leasing allows a company to access vehicles – often EVs – for a fixed term, usually 2 to 4 years, with predictable monthly payments. There are a few leasing models on the market:

1. Traditional Business Contract Hire (BCH)

• Long-term lease (usually 2–4 years)
• Fixed monthly cost
• Mileage limits
• Insurance usually not included

2. Business Car Subscription Services

• Month-to-month or short-term commitment
• All-in-one packages
• Includes servicing, maintenance, roadside assistance – and often insurance

3. Electric Car Salary Sacrifice Schemes

• Employee leases an EV via gross salary deductions
• Employer contracts with a provider
• Typically includes insurance, maintenance, breakdown cover, tyres, and more

Traditional Business Car Leasing: Is Insurance Included?

In most Business Contract Hire (BCH) arrangements, the leasing provider supplies the vehicle – but insurance is your business’s responsibility. This means:

• You must arrange either a fleet insurance policy or name individual drivers on personal policies
• You’re liable for ensuring all vehicles are road legal
• You may be restricted in terms of which insurers are acceptable to the lease company
• You must ensure cover is continuous for the duration of the lease

This setup works for some companies—especially those with existing fleet policies – but it also adds admin, risk, and cost.

EV Subscriptions and Salary Sacrifice: A Different Story

Now let’s talk about more modern, flexible EV leasing options, like those offered here at EZOO.

EV Salary Sacrifice Schemes

These schemes are becoming hugely popular with forward-thinking businesses. They allow employees to drive an electric car in exchange for a portion of their gross salary. And the good news?

• Fully comprehensive insurance
• Coverage for the employee and often their partner or named driver
• No need for the employee to organise or pay for a personal policy
• Insurance is maintained throughout the lease term

This makes salary sacrifice schemes incredibly appealing for both HR and employees – no surprises, no admin, and peace of mind.

Business EV Subscriptions

Think of these as Netflix for cars. Business EV subscriptions are:

• Flexible (monthly rolling contracts or short-term options)
• All-inclusive
• Tailored for agile businesses and short-term projects

Insurance is usually baked into the monthly fee, along with servicing, tyres, maintenance, and breakdown. Subscriptions are ideal for companies that need vehicles quickly, without long-term commitment or red tape.

What Are The Advantages Of Insurance-Inclusive Business Leasing?

Let’s weigh up whether going for an all-in-one package with insurance included is the right choice.

• Simplicity: One monthly payment, everything covered.
• No Admin: No policy comparisons, renewals, or insurance paperwork.
• Predictable Budgeting: Easier to forecast vehicle running costs.
• Great for Employees: Especially with salary sacrifice, employees don’t need to think about insurance at all.
• Risk Mitigation: Cover is guaranteed and designed for leased EVs.

Questions To Ask Your Provider About Insurance

Before you commit to a lease or subscription, ask these questions:

• Is fully comprehensive insurance included?
• Does the insurance cover multiple drivers or just one?
• Are there any driver restrictions (e.g. age or licence type)?
• What’s the excess in the event of a claim?
• Is breakdown cover and roadside assistance included?
• Can we opt out of the insurance if we already have a fleet policy?

Clarity up front will save headaches later.

Build Your Fleet With Peace Of Mind

So, does business car leasing include insurance? Sometimes yes, sometimes no—it all depends on the model. Traditional business leases typically exclude it, while modern solutions like EV subscriptions and salary sacrifice schemes usually include comprehensive cover.

If your business values simplicity, compliance, and low admin, choosing a package that includes insurance is a smart move. Especially with electric vehicles, where incentives, cost savings, and ease of use make bundled options a compelling choice.

Frequently Asked Questions