Business Contract Hire Car Insurance: How Does it Work? 

Business Contract Hire (BCH) is a fantastic way to keep your team moving, and having the right insurance is crucial to a smooth leasing experience. We all know that car insurance can sometimes be confusing, so we’ve gathered everything you need to know in one place – you’re welcome!

Do I have to insure a business lease car?

Yes, it’s a requirement of your agreement with us. A ZenAuto lease agreement requires that the car is insured from the day the car is delivered to you right through to the day we collect it at the end of your lease. For Business Contract Hire, the insurance policy needs to be in the business’s name. Whilst we don’t cover the insurance, you do get AA breakdown cover included in your lease.

What it covers:

• 24/7 roadside assistance
• Some roadside repairs
• Home start recovery
• Recovery to your required destination regardless of distance
• In-hours recovery to the dealership closest to your home address
• Recovery to the closest charge point if your EV runs out of charge
• As many out of hours recovery as required either to nearest dealer or a preferred
  destination
• European cover – access to a 24-hour phoneline (PS. If you’re planning on taking your car abroad you’ll need us to sort your travel docs – find out how the process works on our key info page.)

 

You’re NOT covered if you break down because…

• You put the wrong fuel in
• You have a flat battery due to leaving lights on, phone charging etc.
• You have a roadside collision
• Someone vandalises your car
• Your car gets stuck in snow, ice, or mud
• Your keys are locked in the car/ you’ve lost them
• Your car is stolen
• Your car is broken into

 

Plus, if you opt for our shiny maintenance package you can roll all your MOT, servicing, and tyre TLC needs into the monthly payments. You can also claim 100% of the VAT back on the monthly maintenance payments, regardless of whether the car is used for solely business or personal trips too!

 

What insurance do I need for a Business Contract Hire?

Whether you’re on a Personal Contract Hire Agreement or a Business Contract Hire Agreement, you must have a fully comprehensive policy in place, from start to finish. That way you’re covered if you damage someone else’s car, as well as your own.

We do checks to ensure the cover is in place, so there's no need for you to send us your policy docs.

Other things to consider

Fleet insurance

If you decide to lease more than one car things can start to get complicated if you have different insurance policies for them all. Instead of insuring each company car individually, you might be able to set up one fleet insurance policy to cover the lot.

The benefits of fleet insurance

• You’ll have less paperwork to manage
• It’s usually cheaper than insuring each car separately
• It’s easier to keep track of all the cars under one policy
• Get peace of mind that all your cars have the right cover

So, how does it work?

Typically, businesses that have two or more cars to insure will be able to get fleet insurance, but this may differ from one fleet insurance provider to another.

Just like individual insurance, there are three levels of cover to choose from – third party only, third party, fire and theft and then fully comprehensive cover (remember, you’ll need this one!). So, if you want to make life easier and potentially save your business some money, a fleet insurance policy could be the right decision.

GAP Insurance

GAP insurance (short for Guaranteed Asset Protection insurance) protects the borrower if the car is written off or totalled.

It covers the ‘gap’ by paying the remaining difference between what your insurance company will pay out and the balance still owed on your lease. Although your car insurer will pay out the value the car’s worth at the time, you're still left paying off the value it was when you first leased it in order to settle up with the leasing company.

Remember, it’s in addition to your normal insurance policy and does not replace the need for regular insurance cover – you can NOT use GAP insurance on its own.

Do I have to have GAP insurance on a business lease?

You don’t have to get GAP insurance when you lease a car with us, it’s just a ‘nice to have’ addition that we recommend to all our customers. If you want peace of mind that your business is able to pay the difference in the event of the car being written off or totalled, then it might be worth looking into it.

What to do if your lease car is damaged or stolen

You need to tell us if the car is ever damaged or stolen. Since we own the car, we need to keep a record of what’s happened to it for future reference.

If your car is ever damaged, please call our Support Squad on 0113 5373860 (option 3) or email [email protected] to let us know. We don’t have any part in the repair process though, you simply just need to notify us of any damage. To get the damage fixed you can either go through your insurer to have the repair sorted or pay for the repair at a VAT registered garage that uses approved parts.

If the car is stolen, please ring our Support Squad who’ll then put you in contact with our Financial Assistance team. The Financial Assistance team will then take details of the incident along with your insurance details and our team will speak with your insurer directly to settle the loss.

We really hope neither of these things ever happen to you, but knowing what to do if you’re ever in this position will help take some of the stress away.

 

Want to learn more about business leasing? Grab a brew and find out how business leasing works in our handy article. If you’re ready to start your ZenAuto journey and enjoy flexible business car leasing, then go ahead and browse our best deals to find your dream wheels!