What Happens if You Wreck a Leased Car?
A leased vehicle isn’t your own, so what happens if you get into an accident with one? The process largely parallels the steps you’d follow if you owned the car outright, but there are a few key differences. This guide will help you with the potential ramifications and steps to follow if you’ve had an accident with a leased car. Speak with our car accident attorneys about your situation.
Prioritize Your Safety
Firstly, always prioritize your safety after an accident. Assess whether anyone is injured, call 911, and report the incident to the police. After this, you should immediately contact your insurance company. Many insurance policies require you to report any accidents promptly, and failure to do so could result in your claim being denied.
Contact Your Lease Company
Next, contact your lease company. This is an important step because the leasing company holds legal ownership of the vehicle. Review your lease agreement carefully to determine if there’s a specific timeframe within which you must report the accident.
If the leased vehicle is not totaled, the lease company will likely require you to repair the car. The financial implications of this will depend on your insurance coverage. The circumstances will be different if your leased vehicle is deemed a total loss.
A car is typically declared a total loss if the cost of repairs surpasses the vehicle’s current value. When a leased car is totaled, the lease ends after the insurance company pays the leasing company the vehicle’s actual cash value minus any deductible. If your insurance payout doesn’t cover the remaining lease balance, you’ll have to make up the difference. However, there is a solution that can alleviate this financial burden – gap insurance.
Gap insurance can be a lifesaver in these situations. It covers the ‘gap’ between the actual cash value of your vehicle and the remaining balance on your lease. In essence, it ensures that you’re not left to foot the bill if the insurance payout falls short of what you owe on the lease.
Many lease agreements include gap insurance, often referred to as a ‘waiver of responsibility in case of loss.’ If your lease agreement doesn’t include gap insurance, it can often be added to your auto insurance policy. Some providers, like Progressive, offer similar coverage called loan/lease payoff coverage, which can pay up to 25% of your vehicle’s value toward your outstanding lease balance.
If your leased car is declared a total loss, reach out to your gap insurance provider. Make sure that you provide all necessary paperwork, including your lease agreement, gap insurance contract, and police reports, to expedite the process.
Getting Help with Insurance Claims
While dealing with the physical aftermath of a car accident can be stressful, the process of filing insurance claims for a leased car can be just as overwhelming.
To make it easier, gather all relevant documentation and information about the incident:
- Photos of the accident scene
- Witness statements
- Police reports
- Details about the other party involved
You’ll need these when filing your insurance claim.
Remember that your insurance company and the lease company might have different definitions of what constitutes a “total loss.” Understanding these terms can save you from potential disputes down the line. If you’re unsure, consider consulting with a lawyer to help guide you through this process.
Responsibility for the Leased Car
As the driver, you’re responsible for maintaining the vehicle in good condition. If you’re at fault in an accident, you’ll likely bear the financial burden of repairing the car or paying for its total loss value. This responsibility also extends to meeting the terms of your lease agreement, such as mileage restrictions and routine maintenance, even after an accident.
Choosing the Right Lawyer After a Car Accident Involving a Leased Vehicle
Dealing with the aftermath of a car accident involving a leased vehicle can be complicated. Having an experienced law firm on your side can provide you with valuable support and expertise. Spaulding Injury Law is equipped to help you handle these challenging circumstances.
The experienced team at Spaulding Injury Law has a successful track record with many personal injury cases, including car accidents, motorcycle accidents, and wrongful death cases. Led by Ted Spaulding, our firm has secured significant results for our clients, such as a recent $350,000 settlement in a rear-end collision case and a $1,100,000 settlement in an accidental killing case.
Whether you’re dealing with a minor accident or a complex claim involving a totaled leased vehicle, the team at Spaulding Injury Law is prepared to advocate for your rights and ensure you’re treated fairly throughout the process.
Don’t go through this challenging journey alone. Contact Spaulding Injury Law today for a consultation, and let us help you seek the justice you deserve.
When you become our client at Spaulding Injury Law, you’ll be represented by a thoroughly experienced Atlanta personal injury attorney like Theodore A. Spaulding. For over 15 years, Mr. Spaulding has helped victims of negligence across the state of Georgia resolve personal injury cases, and he’s received a remarkable number of awards and honors from the legal community recognizing his commitment to clients and to the metro-Atlanta area.
Mr. Spaulding has been named one of the Top 100 trial lawyers in Georgia by the National Trial Lawyers for six successive years.
He is honored as a lifetime member of the Million Dollar Advocates Forum ® by the Top Trial Lawyers in America ®.
Charter Member of the Distinguished Justice Advocates.
Member of the Atlanta Bar Association.