Insurance costs

Insurance is one of the highest costs across the board when it comes to motoring. There are various factors that affect the cost of premiums, some of which you can control and others which you cannot.

The value of a vehicle is a big driving factor as this goes against the amount of financial risk the insurer is taking on. So remember that even though the monthly premium for a high end vehicle may be affordable, the insurance costs that come with it may not.

As always you can do your bit to lower insurance costs by safely storing the vehicle, taking on a higher voluntary excess and other actions that mitigate common risks.

Maintenance costs

When leasing a vehicle there is the option to have maintenance included (sometimes this is essential).

Maintenance packages basically cover everything and anything that could go wrong with your vehicle during the lease. This includes repairs, tyre replacements, servicing, MOT, bodywork etc.

Whether you take maintenance or not is a question of how much risk you are willing to embrace.

Maintenance packages give fixed cost motoring which allows for manageable cash flow forecasting. You know from day 1 of the financial year how much your company cars are going to cost you.

Without maintenance you could be way below or above the fixed cost price depending on circumstances.

This post was written by Pete McAllister from Intelligent Car Leasing, a UK wide car leasing company that provides competitively priced deals for business and personal customers. Visit the website today to see the latest special offers and deals available.