Novated lease insurance
Car insurance with a novated lease is straightforward, but having options means understanding what matters to you. Whether you bundle coverage into your monthly payment or arrange your own provider, here's what you need to know.
Car insurance with a novated lease
How does car insurance work with a novated lease?
Car insurance isn't automatically included in every novated lease. But if you'd like to include an insurance budget in your novated lease, you get to enjoy income tax and GST savings on your annual premium. You have two options:
Use Leaselab’s insurance provider
If you choose our policy, everything’s taken care of. Your premium is bundled into your novated lease and paid monthly through your account and renewed each year.
With only month-to-month obligations, our provided policy is designed to offer maximum flexibility. It’s designed specifically for leased vehicles.
Choose your preferred insurance provider
Choose your own provider and pay them directly. Leaselab will reimburse you through your lease, either monthly or as annual instalments.
Leaselab Insurance: cover designed for novated leases
Leaselab Insurance is built specifically for leased vehicles. It bundles comprehensive cover with benefits designed around the way a lease actually works, so an accident or write-off doesn't leave you out of pocket.
Signature Benefit: What is lease payout insurance?
If your vehicle is written off, a standard motor insurer pays out the vehicle’s market value at that moment. But early in your lease term, the amount you owe on your lease is often higher than the vehicle is worth.
That shortfall is called negative equity, and it’s normally money out of your pocket.
Lease Payout Benefit
The Lease Payout Benefit covers the shortfall between your insurer's settlement and your outstanding lease payout figure. Your lease is cleared completely, and you walk away with nothing left to pay.
What is covered by Leaselab Insurance?
The following is included as standard:
Protection & Coverage:
- Comprehensive coverage for anyone legally able to drive
- Choice of repairer (not forced to use insurer's network)
- Windscreen excess waiver (one excess-free claim per year)
- Learner driver coverage
- Off-road driving coverage
Financial:
- New vehicle replacement after total loss (within 3 years of first registration)
- Hire vehicle after theft (up to 30 days)
- Emergency travel allowance ($2,250)
- Emergency accommodation ($2,250)
- Personal accident benefit ($5,000)
- Personal effects coverage ($1,000)
Practical Assistance:
- Emergency repairs ($500)
- Towing and storage (reasonable costs covered)
- Debris removal ($25,000)
- Vehicle modifications coverage ($3,000)
- Tyre replacement coverage
- Battery electric vehicle towing
- Vehicles being test-driven by you ($40,000)
What to do if you’ve had an accident
If you’re insured through Leaselab
- Contact us immediately on 02 8123 6902
- Have your registration number ready as a reference
- Let them know you have a novated lease with Leaselab
- We'll guide you through the entire claims process
You'll have support making informed decisions about repairs, replacement vehicles, or next steps.
If you’re using your own insurer
- Contact your insurance provider directly and follow their claims process.
- Let them know you have a novated lease so they understand your situation
Standard policies may not cover the lease payout, so clarify this with your insurer upfront.
Ready to add insurance to your novated lease?
Speak with your lease consultant about adding insurance to your novated lease, or explore our cars today.
Once that's sorted, our guide to managing your novated lease covers everything else you need to know about your next novated lease.
FAQs
Can I include insurance in my novated lease?
Yes. When you set up your novated lease, you can bundle in your insurance. Instead of paying a yearly premium in one lump sum, you just pay a portion of each pay cycle. It also simplifies things if you ever need to make a claim.
Am I covered for off-road driving?
Leaselab Insurance includes off-road driving coverage. However, coverage, limits and eligibility depend on your specific policy terms. Check your Product Disclosure Statement for full details or ask your lease consultant.
Are modifications and accessories covered?
Any modifications included in the original purchase price are covered, provided the vehicle remains roadworthy.
Can anyone drive my car?
Yes, anyone who is legally able to drive is covered under Leaselab Insurance. This includes licensed friends, family or authorised drivers. However, coverage details are subject to your policy terms and PDS.
Please note: Benefits, limits, eligibility, and exclusions are subject to Leaselab Insurance's Product Disclosure Statement and policy terms. Always review your PDS for complete information about your coverage.
