Can I Get Impounded Car Insurance for a Car That Belongs to a Leasing Company?

So, your leased car has been impounded. That’s a fun phone call you’ll have to make to the leasing company, isn’t it?

If you’re in this situation, you’re probably feeling a mix of panic and frustration. Not only do you may need to get the car back fast before the storage fees pile up, but now you’re also wondering; can you even get impounded car insurance if you don’t actually own the car?

The short answer? It’s tricky, but not impossible.

The long answer? It depends on the leasing company, the insurance rules, and how quickly you act. Let’s go through what you might need to know; and what you probably need to do next.

First Things First: Why Was the Car Impounded?

Before we get into the insurance side of things, you probably need to figure out why the car was seized in the first place. The reason matters, because it can affect whether or not you’ll be able to retrieve it at all.

Common reasons a leased car might be impounded:

• No insurance – This is one of the most common reasons. If the car wasn’t properly insured, the police can seize it on the spot.
• No tax or MOT – Even though the car isn’t yours, you’re responsible for keeping it road-legal. If it was seized for lack of tax or MOT, you’ll need to sort that out first.
• Traffic offences – If the car was involved in an offence; such as illegal parking or dangerous driving; the police can impound it.
• Incorrect paperwork – A mix-up with leasing documents or insurance details can also land your car in the pound.

Knowing why the car was taken is what matters most, because some situations might mean the leasing company has to be the one to deal with the impound release, not you.

Can You Get Impounded Car Insurance If the Car Is Leased?

Here’s where things get complicated. Most impounded car insurance policies require you to own the vehicle or at least have the V5C logbook (the vehicle registration document). But with a leased car? You don’t own it, and the leasing company holds the V5C.

So, can you still get insurance to release it? Maybe; but it depends on a few things.

1. Check Your Lease Agreement

Some leasing companies do not allow the registered keeper (you) to take out additional policies without their permission. If your contract states that you can’t take out insurance without their approval, you’ll need to speak to them before doing anything.

2. Call the Leasing Company (Like, Now)

If your car has been impounded, you might need to inform the leasing company immediately. Why? Because:

• They might already have an insurance policy in place that can be used.
• They may need to provide written permission for you to sort out impound insurance.
• If they find out later, you could be in breach of your contract, which is a whole new headache you don’t need.

Some leasing companies will insist on handling the release themselves, whilst others may allow you to sort it; but only under their conditions.

3. Find an Insurer Who Covers Leased Vehicles

Most standard impounded car insurance providers only cover cars where the policyholder is the owner or named keeper. However, there are specialist insurers who can cover leased cars, provided you have the necessary documentation.

When looking for insurance, make sure:

• The policy explicitly covers leased vehicles.
• It meets the minimum requirements for impound release (third-party cover for at least 30 days).
• You have written permission from the leasing company if required.

What Documents Do You Need to Get a Leased Car Out of the Pound?

To get the car back, you’ll need:

• Proof of identity – Your driving licence or passport.
• Impound notice – The official document from the police stating why the car was seized.
• Proof of insurance – A policy that meets impound release requirements.
• Permission from the leasing company – Some pounds will ask for written confirmation that you are authorised to retrieve the car.
• V5C or proof of ownership – This is where things can get tricky, as the leasing company holds the logbook. If they won’t give it to you, they may need to go to the pound themselves.

If you show up at the pound without the right paperwork, expect to be sent away; whilst the storage fees continue stacking up at around £26 per day.

What If the Leasing Company Refuses to Help?

If your lease provider refuses to allow you to get insurance or won’t release the V5C, you might not be able to retrieve the car at all.

Your options in this case:

• Ask the leasing company to handle the release themselves. Some companies prefer to deal with the pound directly, rather than letting you sort it out.
• See if they will temporarily transfer the insurance into your name. This could allow you to get an impounded car insurance policy.
• If all else fails, they might just take the car back. Some lease providers will cancel the lease agreement if the car is impounded, leaving you without a vehicle (and possibly with a hefty penalty fee).

The Final Word:: Act Fast & Get the Right Insurance

If your leased car has been impounded, don’t waste time; storage fees will keep adding up every day.

• Check your lease agreement to see what your options are.
• Call the leasing company immediately to get their approval or assistance.
• Find a specialist impounded car insurer who covers leased vehicles.

If you probably need help finding fast impounded car insurance for a leased vehicle,click the button below to start comparing quotes or ring the number below for expert advice. The sooner you act, the less you’ll have to pay in extra fees!