Figuring out what to do after a car accident with a leased car can be extra stressful. The car isn’t technically yours, and it’s essential you reach out to the leasing company to keep them in the loop on damage and repairs.
While the aftermath may feel a little different, much of what happens after a leased car accident is the same as if you owned the vehicle. What’s most important is that you protect yourself against unnecessary costs and never feel like you have to fight against an insurance company on your own.
What to do after a leased car accident
The steps you should take after getting into an accident while driving a leased car are the same as if you were in a vehicle you owned. Make sure everyone involved in the accident is safe, that the car isn’t in a dangerous spot and call 911.
Exchange information with other drivers involved in the accident before leaving the scene. Get their name and phone number, insurance information and license plate number. Document the scene as well. The more pictures you can take, the better.
Make sure you know how to obtain a police report of the accident before the officers leave the scene and then seek medical attention if you need it. Make sure to document everything and keep meticulous records.
You’ll also want to call both your insurance company and the car leasing company to inform them of the accident and figure out next steps. You may also want to contact a lawyer at this point to have legal support.
Review lease terms and your insurance
Standard car lease agreements typically require that you have your own insurance policy with comprehensive and collision coverage. If you didn’t have this coverage when you signed the lease, you most likely were offered a policy directly from the leasing company before you could take possession of the car.
Regardless of how you’re covered, you’ll need to notify the leasing company and your insurance company after an accident in order to figure out the process for filing a claim and scheduling repairs. The lease will also outline any penalties you may have to pay the company itself as a result of the damages to the car.
How does an accident affect a car lease?
Depending upon the leasing company’s policy, you will most likely have to get the repairs for your leased car yourself. Make sure you thoroughly review what you can and can’t do when it comes to replacement parts and coordinate everything with the leasing company. You may only be able to use certain car parts and have a limited list of where you can get repairs.
If you’re at-fault and have adequate coverage, you might not have to pay anything out of pocket when it comes to repairing the car, although you will have to file a claim with your insurance company to see if you’re fully covered. If you’re not at-fault, you’ll need to file a claim with the other driver’s insurance for compensation.
Returning a leased car after an accident
If you’ve followed protocol and already told your leasing company that the car you’re driving has been in an accident, there won’t be any surprises when you return the car. If you’re able to get all the repairs done as well, according to your lease agreement, before the lease is up, even better. Some leasing companies will accept vehicles needing body repair before your lease is up, but you’ll need to check the details of your lease agreement to be sure.
It is important to note that if you return a leased car early, even after an accident, you may have to pay a fee.
What happens if you total a leased car?
If you’re the at-fault driver, the process of dealing with a totaled car is the same as if the car were your own. Your insurance pays out the vehicle’s actual cash value up to your policy limits. If the car’s value is higher, and you don’t have GAP insurance, you may be responsible for the difference. Adding GAP insurance to your policy will ensure the difference between the car’s value and the limit your policy pays out is covered.
If not at fault, the responsibility of covering this expense may go to the at-fault driver and you may have to file a claim with the other driver’s insurance.
What happens when fault isn’t clear?
Much like when driving a vehicle you own, when fault might not be clear, insurance companies can end up going back and forth. This could put your compensation at risk when it comes to property damage and personal injury. Even if you’re driving a leased car, you’re not at the mercy of the insurance company or the leasing company. Hiring a lawyer to protect your best interests is often the best way to go into this situation.
At Watson Injury Law, we understand how complicated car accidents can get. We take a personal approach to your situation, focusing on the specifics of your accident to adequately fight for the compensation you deserve. Even in a leased vehicle, you may be entitled to damages to help cover car repairs as well as personal injuries. Contact us today and schedule a time for us to evaluate your case and help you understand your rights.