Car leasing can be a good deal: you get a new car with a low payment for a period of time and then get a new one when the lease agreement expires. However, you don’t own a leased vehicle outright, so what happens when you have a total loss on a leased car? Well, it can depend on whose fault the accident was, the lease terms, the vehicle value, and a myriad of other factors.
Immediate Steps to Take After Crashing a Leased Car
There are some steps you should take as soon as possible when you have an accident in your leased vehicle. If you are injured, of course get medical assistance immediately. If not, you may still wish to call the police if there is a disagreement as to who is the at-fault driver, if the other driver does not have an insurance policy, or if the accident scene is a hazard to other drivers.
Anytime there is an accident, exchange insurance company and policy information with the other driver, take pictures of the accident for an accident insurance claim, and take down any other details you feel may be pertinent for accident reporting purposes.
What Happens if You Total a Leased Car?
After an accident, hopefully you aren’t thinking “I totaled my car without insurance” because insurance coverage can go a long way in covering property losses. Regardless, your obligations to the leasing company remain. Even though the vehicle is totaled, there is no lease termination. This means you will still be obligated to make payments and fulfill other lease obligations. Weather Impacts Injury Risks so you can avoid totaling your vehicle by driving safe.
If you do have collision coverage, your insurance payout will go directly to the leasing company for the fair market value for the vehicle but there may be a potential gap as to what you owe under your lease obligations. If you don’t have gap coverage to make up for this difference, you may have to investigate buyout options to buy out of the remaining lease including lease-end fees. If you are not the at-fault driver, you may be able to pursue a claim against the other driver with the help of a lawyer.
Who to Notify After the Accident?
After a leased car accident, there are multiple parties that you will need to notify including:
- Contacting the police and filing a report – Whether you need immediate assistance or not, you should contact the police and file a report. This is essential accident documentation for filing an insurance claim. Hopefully, you were able to exchange insurance information with the other driver so you can give all the details to the police. Documenting the scene of an accident can be essential if you need to file a legal claim. Be sure to keep a copy of the police report for collision insurance and gap insurance purposes.
- Informing your insurance company – After filing a police report, you will want to contact your insurance company as soon as possible. The insurance company will explain what will happen next, such as getting your car repaired at a body shop, at an authorized dealer or approved repair shop that uses original manufacturer, parts and getting a rental car while your vehicle is repaired. navigating the claims process with insurance companies can be difficult, and an attorney can help, especially if there is property damage liability.
- Notifying the leasing company or dealership – After contacting your insurance company, you will need to notify the leasing company or dealership lien holder about your leased car accident, explain to them that you are undergoing the claims process with the insurance company for vehicle repairs and a damage assessment. They may ask about accident liability, your deductible, and may even request a vehicle inspection to assess financial penalties for excess wear and tear if you decide to request a lease turn-in. A New York City car accident lawyer can help you navigate this process.
- Reporting the accident to your finance company if applicable – If you financed your vehicle value through a finance company, you would also want to report the accident to them, letting them know that you have comprehensive insurance and that your leased car was totaled, but you are not at fault.
Understanding Your Lease Agreement and Accident Policies
Vehicle ownership through a lease means you are subject to certain terms that you would not be if you buy a car outright, such as wear-and-tear fees, lease end requirements and lease turn-in provisions. Accident policies, such as your collision insurance, may have certain terms on vehicle inspection, maintenance, and at-fault collisions.
Understanding the terms of your lease and accident policies can help you avoid unexpected costs and legal issues. A personal injury attorney can help you understand these policies, repair estimates, and repair costs.
Get Legal Help with Your Leased Car Repair Claim
Many things can lead to an accident, including the dangers of distracted d,riving but regardless if your vehicle is damaged or you have a leased vehicle totaled, the attorneys at Omni Injury and Accident Law can help you navigate the complex repair claims involving leased vehicles. They can help ensure everything goes smoothly and the process is less stressful. Contact Omni Law today for a consultation.