LLD car insurance (long-term rental)

Lease a vehicle for several years instead of buying it? The approach is now very widespread and allows a large number of motorists to drive permanently with a recent vehicle. What are the characteristics of car insurance for a long-term rental car (LLD)? The point with Turbo.fr

What is a long-term rental?

The long-term rental (LLD) constitutes an interesting alternative to the purchase of a new or used vehicle, in cash or via a car loan. The driver signs a rental contract with a specialized company. The terms of provision may vary:

  • The duration of an LLD is typically comprised between 2 and 5 years ;
  • A annual mileage limit or multi-annual is fixed at the signing of the contract: for example 60,000 kilometers over two years;
  • Exceeding the cap can have significant financial consequences, with a penalty included between €0.05 and €0.40 per additional kilometer.

The amount of rent paid each month obviously depends on the estimated value of the vehicle. At the end of the rental period, the driver returns the vehicle to the company and can optionally sign a contract for a new car. With a fixed monthly budget, he thus retains the possibility of permanently driving a recent vehicle.


LLD has many similarities, but also some differences with the lease option to purchase (LOA) :

  • The lessee does not have the possibility of acquiring the vehicle at the end of the rental period.
  • The LLD contract includes maintenance, assistance and repairs of the vehicle in the event of a breakdown, which is not always the case in LOA.
  • The LLD contract also most often includes an insurance formula, even if you are not obliged to subscribe to it.

How to insure a car in LLD?

The obligation to insure a vehicle on long-term rental is the responsibility of the driver. He must provide proof of a valid contract to take possession of the vehicle. It is possible for him:

  • To take out LLD car insurance directly offered by the rental company;
  • To choose another contract with a competing insurer.

The choice of another insurance contract is a recognized right of the motorist: the rental company therefore does not have the right to condition the provision of the vehicle to the choice of its own insurance. However, it may well impose a certain level of guarantee.

As a reminder, the legal minimum for car insurance is a “third-party” contract. This civil liability guarantee will make it possible to compensate other road users who suffer damage if the insured causes an accident at fault. On the other hand, it does not cover any damage suffered by the insured himself.

This is the reason why most car contracts in LLD impose a higher level of guarantee, in the form of an “all risks” contract.

What guarantees for car insurance in LLD?

The vast majority of rental companies impose a common guarantee base for all their LLD contracts. This includes :

These different clauses naturally imply a significantly higher insurance premium for your LLD car. However, this is essential protection: failing this, you would be personally liable to the rental company for damages in the event of a claim at fault or without an identified third party.

LLD car insurance: what happens in the event of an accident?

The rules for declaration and compensation in the event of a claim do not change for a vehicle on long-term rental. Be sure to respect the deadlines and formalities required to report the claim to your insurer. You will then benefit from the compensation provided for in the contract to carry out the necessary repairs. Do not neglect to report an accident on the pretext that the vehicle does not belong to you! Penalties may apply if you do not return the vehicle in a normal state of wear.

How much does LLD car insurance cost?

The following table offers a comparison of the best quotes forlong-term rental car insurance, in all-risk formula. The advertised rates apply to exclusively private use, for a driver living in Lyon, driving 15,000 kilometers per year, with a closed garage and a maximum bonus with no recent liability claims.

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