Step 1: Understand What’s Included in a Car Subscription
Most UK car subscription services offer two main insurance options:
- Inclusive Insurance – The monthly fee includes fully comprehensive cover arranged by the provider.
- Own Insurance Option – You arrange your own motor policy and provide proof before collection.
Inclusive insurance usually covers:
- Fully comprehensive protection
- Third-party liability
- Windscreen, theft, and fire cover
- European travel (in some cases)
However, you’ll typically pay a higher monthly fee for this convenience.
Providers like Sixt+ let you choose between the two, making it easier to align your subscription with your personal or business insurance situation.
Step 2: Pros and Cons of Inclusive Insurance
Advantages:
- Instant cover — no need to contact insurers or manage paperwork.
- Premiums included in one monthly payment.
- Easier setup if you don’t own another vehicle.
- Suitable for new drivers or short-term users.
Disadvantages:
- Less flexibility for multi-driver use.
- Higher overall monthly cost.
- Limited ability to adjust excess or add business use clauses.
Inclusive insurance is best suited to individuals or small businesses who value convenience and short-term cover.
Step 3: When It Makes Sense to Use Your Own Insurance
If you already hold a company fleet policy or have an existing business motor policy, using your own insurance can make better financial sense. Many self-employed drivers, delivery contractors, or limited company directors already have policies that cover temporary vehicles.
By opting out, your monthly subscription fee is lower — sometimes by £100–£200 per month depending on the provider and car category.
Just ensure your insurer provides:
- Fully comprehensive cover for subscription or leased vehicles.
- Business use (if applicable).
- Proof of coverage issued to the subscription company before delivery.
Step 4: Key Differences Between Providers
Each UK car subscription provider handles insurance slightly differently:
| Provider | Insurance Option | Typical Excess | Business Use Allowed |
|---|---|---|---|
| Cocoon Vehicles | Own Policy | N/A | Yes, with own insurance |
| Sixt+ | Inclusive only | £1,000 | Limited business use |
| Ezoo | Inclusive only | £1,000 | Please Call |
| MyCarDirect | Both options available | £750 | Yes |
Choosing between them depends on how often you drive, who uses the car, and your insurance flexibility needs.
Step 5: How Claims Work
If you’re using the provider’s insurance, claims are handled directly through their insurer — a big convenience if the car is damaged or stolen.
If you’re using your own insurance, you’ll be responsible for initiating claims, just like with a personal or business car.
In both cases, you’ll still need to report incidents to the subscription provider immediately, as they own the vehicle.
Step 6: Legal Considerations and Best Practices
All cars in the UK must be insured, even if they’re used temporarily. Car subscriptions must comply with the Road Traffic Act 1988, which requires continuous cover. Providers will not release a car until valid insurance is confirmed.
According to GOV.UK’s official insurance guidance (nofollow), it’s illegal to drive or even park a car on public roads without valid insurance — so double-check your documents before collection day.
Step 7: Tips for Choosing the Right Option
- Short-term use (1–3 months): Inclusive insurance is easiest.
- Regular use or multiple cars: Use your own cover for lower costs.
- Business drivers: Verify your existing policy includes subscription cars.
- Family or shared users: Ensure named driver options are available.
If in doubt, ask your provider for a sample insurance certificate before signing up. It’ll show exactly what’s covered.
