More about car lease
In order to fully manage your risks you need to sign motor insurance and casco insurance agreements in addition to your lease agreement.
Motor third party liability insurance is mandatory insurance that compensates damages you have caused to third parties.
Casco insurance compensates damages not covered by mandatory insurance in case of an accident: traffic accidents, natural disasters, fires, vandalism, robbery, theft. You can add roadside assistance services to your casco insurance agreement to cover other unexpected situations: a broken tyre, problems starting the engine etc. There are various other supplementary insurance covers to choose from.
The leased vehicle must be insured at a bank-approved insurance provider, while taking into account the insurance criteria.
IIZI Kindlustusmaakler, our partner, provides you with insurance offers from the following insurance providers:
- If P&C Insurance
- BTA Insurance
- Seesam Insurance
- Salva Insurance
- Gjensidige Insurance
- ERGO Insurance SE
- Inges Insurance (only Motor third party liability insurance)
- AB “Lietuvos draudimas” Estonian branch (PZU)
- Compensa Vienna Insurance Group, UADB Estonian branch
If you get your insurance through IIZI Kindlustusmaakler we will also offer you the following additional benefits:
- You can make your monthly casco and mandatory motor insurance payments with your lease payments. No VAT added to your insurance payments.
- IIZI Kindlustusmaakler will let you conveniently renew your insurance policies during the leasing period.
- In case of a loss event you can get help from IIZI Kindlustusmaakler at 16660.
Vehicle use autorisation
In addition to insurance you will also need authorisation to use the vehicle in order to avoid complications in traffic, when crossing borders and handling accidents. Please fill in the authorisation request and send it to firstname.lastname@example.org to receive your authorisation document. Find out more by calling us at 6 800 800 (Mon-Fri 8:30-17:30).
Vehicle use authorisation requirements
- Estonia: you do not need authorisation to use your vehicle. If the person using the vehicle is not listed on the registration certificate, they need to carry the registration certificate with them when using the vehicle.
- European Union: always carry the registration certificate with you. An authorisation is recommended if the driver is not listed on the registration certificate. You may be asked for an authorisation document along with vehicle documentation at border crossing in the Republic of Estonia and the European Union, but also in the case of traffic accidents and insurance cases.
- Outside the EU and CIS countries (Russia, Belarus, Ukraine, Armenia, Azerbaijan, Kazakhstan, Kyrgyzstan, Moldova, Tajikistan, Uzbekistan, Georgia) you need a certified authorisation even if the driver is listed on the registration certificate as the main user or user of the vehicle. You also need the registration certificate and the Green Card. You will need to purchase additional coverage for the area (country) you are visiting in addition to your casco insurance.
Authorisation will be granted if the purchased insurance is valid on the territories of the countries to be visited.
The need for additional insurance protection in the European Union and in other countries will depend on the terms and conditions of the motor and casco insurance policies of the vehicle. It is always recommended to have the Green Card with you when driving abroad.
For additional insurance coverage contact IIZI Kindlustusmaakler at 666 0300 or by e-mail at email@example.com.
Examples of annual percentage rates of charge
There are various expenses related to borrowing and loans themselves, such as such as interest, credit fee, monthly maintenance fee to the card tied to the loan, etc. The annual percentage rate (APR) of charge can be calculated for every loan on the basis of these expenses. Basically, the APR is the amount of the expenses arising from the loan in a year.
The sample APR of the loans offered by Danske Bank are given below.
The initial APR is 1.83% per year on the following sample conditions:
credit amount €50,000, interest 1.75% per year (6 month EURIBOR + 1.75%; calculated on 6 month EURIBOR as at 10.03.2016, which was -0.139% and is deemed to be 0 (zero), unfixed interest), contract fee €250, term 25 years, total amount €62,201.35, monthly repayment €206,52. The rate is calculated on the assumption that the credit amount will be immediately drawn down in full and the principal is repaid and interest is paid in monthly annuity payments. Collateral must be inured for the entire period of the loan.
The APR is 26.94% per year on the following sample conditions:
credit limit €700, interest rate 18%, contract fee €20, current account management fee €1.50 per month, repayment term 1 year, total amount €865.75. The rate is calculated on the assumption that the credit amount will be immediately drawn down in full.
The initial APR is 5.45% per year on the following sample conditions:
credit amount €1,920.00, interest rate 5%, contract fee €2.56, total amount €1,975.89. The rate was calculated on the assumption that the loan amount will be immediately drawn down in full and repaid within a year in 12 equal instalments after equal intervals of time.
The initial APR is 2.72% per year on the following sample conditions:
capital lease, price of property €19,000 incl. VAT, down payment 20%, residual value of property at end of period 0%, contract period 5 years, interest rate 2.0% (6 months EURIBOR + 2.00% per year; the calculation is based on 6 months EURIBOR as at 01.02.2017, which was 0.244% and is deemed to be 0 (zero); unfixed interest rate), contract fee €175; current account management fee €1.50 per month, total amount €16,260.49, monthly repayment €266.42. The property must be inured for the entire period of the loan.
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