Insurance is your first line of defence against everything from fender benders to serious accidents. Not to mention incidents like fire and theft. Car finance is one of the most popular ways to purchase vehicles in the UK, but do agreements come with insurance? Read on as we answer “does car finance include insurance” and what you need to do to stay safe and responsible on the road.
Is insurance included with car finance?
Does car finance include insurance is often one of the first questions asked by borrowers. In most cases the answer is no. Car finance is a very different industry to auto insurance and most companies specialise in only one niche.
When you source a car finance quote, it’s best to assume insurance is not included. That said, some lenders do offer packages so it’s always worth inquiring. Bundling your car finance and insurance can sometimes unlock savings, though it’s not common. Instead, it’s best to source a separate car insurance quote.
As a bare minimum, you’ll need third-party insurance. It’s compulsory on British roads and covers damage to other vehicles and injuries to other drivers and passengers. Does car finance include insurance for third parties? No, like other insurance policies you’ll need to source third-party insurance from an independent provider.
Crunch your numbers with My Car Credit
Can I afford to buy a car, as well as pay for extras like insurance? It’s important to take a close look at your numbers before committing to a car loan.
If you want to keep costs as low as possible it’s worth considering options like Personal Contract Purchase (PCP), which allows you to spread out the cost of car ownership over several years. Your monthly payments are low and at the end of the agreement you have the option to renew the contract and exchange the car for a newer model, make a final ‘balloon payment’ to own the car outright or simply end the contract.
Representative APR 10.9%
Evolution Funding Ltd T/A My Car Credit
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Got a question you can’t find the answer to, or need some advice and guidance around taking out car finance? Our Car Credit Specialists are friendly, experienced, and here to help so get in touch today!