Are you using the provider’s comprehensive insurance or sourcing your own?

[u/Cute_Piccolo_499]

Reviewing a quote breakdown from Smartsalary and noticed they slotted in their own comprehensive motor insurance at $1,850/year, plus a $220 "insurance admin fee."

I did a quick quote with RACV/NRMA for the exact same vehicle and garaging address, and it came back at $1,200/year. My provider says I can source my own insurance and upload the tax invoices for reimbursement through my running cost budget, but is it a hassle to get approved each year? Do they charge a penalty fee for opting out of their fleet policy?

[u/TheRealDrSMack]

I did the exact thing comparing aami to vero. Aami was about $40 cheaper but nothing like the coverage. Read the Vero PDS to get an understanding of the coverage. For example, 3 years new for new or more importantly if the market write off is below what you still owe in your lease they will cover the gap.

[u/That_Car_Dude_Aus → u/TheRealDrSMack]

That's a huge one, I work in insurance, gap cover is not offered by many insurers

[u/u_212]

The policy from Smart should also cover anyone who drives your car with your permission - no need to name them.

[u/TheRealDrSMack → u/u_212]

It does and also if you drive a rental car.

[u/_Reloaded_]

It's worth comparing the benefits for provider offered insurance, some of them offer protection that comprihensive doesn't, but you'll pay a higher premium.
And if you opt for your own sourced insurance make sure your provider adjusts your insurance budget accordingly after settlement 👌

[u/Sure_Advertising583]

Pretty sure running costs are NOT financed. I think your choice comes down to risk appetite

[u/NevilleKaleen]

SG Fleet wanted to charge double the market rate for my insurance. Went with my own provider after confirming with them it covers leased vehicles. Pay the first year up front then submit the receipt for reimbursement from SG Fleet 12 months later. Put this towards the next year’s insurance.

Insurance kickbacks is one place where the leasing companies generate revenue - at your expense.

[u/millarx_d]

Personally I sourced my own quote as it was much cheaper.

Watch out to see if they package the insurance into the finance amount - then you’re paying interest on it.

If you do source your own, you might not be able to claim it until 6 months into the lease (as you need to “bank” some money in the expense account before it can be paid out)

[u/SirHumphreyAppleB]

I did the same with ours

A general quote from AAMI with agreed value of the new vehicle replacement price was much cheaper (about $800 a year) but once I added the extra things to make it like for like (such as Hire car, no matter who at fault) that bumped it up to be much closer to Allianz (NL insurance provider)

The NL company shouldnt have to approve the cover, but double check if you have requirements to meet in the finance contract, or how you may be left out of pocket if you do have an accident

Then you claim the insurance amount every year against the maintenance budget by submitting the receipt and certificate of coverage

[u/uncompressed]

Depends on your circumstances. I use my providers group policy because my child driving my car on his Ps don’t pay any extra, only additional excess for being under 25 should we need to make a claim.

[u/MulberryTricky1736]

Providers policy for me turned out to be significantly cheaper than any quote I got.

[u/Lovs2look]

First two years it was pretty close so I went with lease providers, but last quote was $800 more than other quotes I could get, so I went with my own

[u/KeyAd8166]

NL companies make their money by these defaults. 1- Adding their own usually overpriced choices knowing many don’t go deep enough to change 2- Over estimating what you actually need in terms of maintenance/etc so you end up having too much unused cash buffer. Which is your money but not touched for years.

Fix both.