Leased Car Accidents: Navigating the Process

Leased Car Accidents: What You Need to Know and How to Protect Yourself

Have you ever wondered what would happen if you were involved in an accident with a leased car? While the process may resemble dealing with a personally owned vehicle, there are crucial distinctions to consider. In this comprehensive guide, we’ll explore the potential consequences and steps you need to take if you find yourself in an unfortunate collision with a leased car. At Pourreza Law, we understand the complexities involved in such situations, and our car accident attorneys are here to support you throughout the process.


Ensuring Your Safety Comes First

In any accident, prioritizing your safety is paramount. Immediately assess whether anyone involved requires medical attention and promptly call 911. It’s vital to report the incident to the police and, without delay, notify your insurance company. Most insurance policies necessitate prompt accident reporting, and failing to do so could result in your claim being denied.

Contacting Your Lease Company

Following the necessary safety measures, your next step is to get in touch with your lease company. This is crucial because the leasing company retains legal ownership of the vehicle. Carefully review your lease agreement to determine the specific timeframe for reporting accidents.

In cases where the leased vehicle sustains damage but is repairable, the lease company will likely require you to have it fixed. The financial implications will largely depend on your insurance coverage. However, if the leased car is deemed a total loss, the situation becomes different.

Understanding Total Loss and Gap Insurance

If the cost of repairs exceeds the current value of a vehicle, it is typically declared a total loss. If the lease is terminated, the insurance company pays the leasing company the actual cash value of the car, minus any deductible. But there is a solution to ease this financial burden: gap insurance. If your insurance payout doesn’t cover the remaining lease balance, you’ll be responsible for the difference.

Gap insurance acts as a safety net in these circumstances. It covers the difference, or the ‘gap,’ between the actual cash value of your vehicle and the outstanding balance on your lease. Essentially, it ensures that you aren’t left shouldering the financial burden if the insurance payout falls short of what you owe on the lease.

While some lease agreements include gap insurance, often referred to as a ‘waiver of responsibility in case of loss,’ you can add it to your auto insurance policy if it’s not already included. Certain providers, like Progressive, offer similar coverage known as loan/lease payoff coverage, which can contribute up to 25% of your vehicle’s value toward your outstanding lease balance.

In the event that your leased car is declared a total loss, promptly contact your gap insurance provider. Ensure you provide all the necessary documentation, including your lease agreement, gap insurance contract, and police reports, to expedite the process.

Navigating Insurance Claims

Dealing with the aftermath of a car accident can be overwhelming, and when a leased vehicle is involved, the process of filing insurance claims can become even more complex. To streamline this process, it’s crucial to gather all relevant documentation and information, including accident scene photos, witness statements, police reports, and details about the other party involved. These will be essential when filing your insurance claim.

Keep in mind that insurance companies and lease companies may have varying definitions of what constitutes a “total loss.” Understanding these terms can prevent potential disputes in the future. If you find yourself unsure, consulting with a lawyer who specializes in this area can provide guidance and ensure your rights are protected.

Responsibility and Lease Agreement Obligations

As the driver, you hold the responsibility for maintaining the leased vehicle in good condition. If you’re at fault in an accident, you’ll likely bear the financial burden of repairing the car or covering its total loss value. Additionally, you’re obliged to meet the terms of your lease agreement, such as adhering to mileage restrictions and performing routine maintenance, even after an accident.

Selecting the Right Lawyer

Navigating the aftermath of a car accident involving a leased vehicle can be overwhelming. Having an experienced law firm by your side can offer invaluable support and expertise. At Pourreza Law, we have a proven track record in personal injury cases, including car accidents, motorcycle accidents, and wrongful death cases.

Whether you’re dealing with a minor accident or a complex claim involving a totaled leased vehicle, our dedicated team is prepared to advocate for your rights and ensure you’re treated fairly throughout the process.

You don’t have to face the challenges of a leased car accident alone. Contact Pourreza Law today for a consultation and let our experienced attorneys help you seek the justice you deserve. Remember, understanding the unique aspects of dealing with a leased car accident and having expert guidance can make all the difference in your journey toward recovery.