Car Accident in Leased Vehicle: What You Should Know
If you’re looking to get a vehicle but buying one outright isn’t an option, one of the best alternatives is leasing. There are a ton of benefits that come with a leased vehicle including smaller monthly payments and an easy way to return it once your contract is up.
With a leased vehicle, you have to deal with a few extra responsibilities as well. You’ll only have a limited amount of miles to use each month and regular maintenance is mandatory. One of the most important differences you need to know about involves how you react when you’re in a car accident in a leased vehicle. Here’s everything you need to know.
What to Do When in an Accident
If you’re involved in a car accident in a leased vehicle, the first steps are the same as if you owned the vehicle yourself. Make sure you are safe and uninjured before you do anything else. Once your safety has been secured, you can move on to the other people involved in the accident. Always make sure you call the proper authorities as soon as possible. Any injured people will need an ambulance and police will always be required.
You need police to write an official report of the scene. This will come in handy later if you decide to file a lawsuit against anyone else involved in the accident. Make sure you get contact information and insurance information from everyone involved and give them yours as well. If you can, take pictures of the scene yourself making sure to highlight visible damage and the positioning of the vehicles.
Extra Reporting
Typically, you’d only have to report an accident to your insurance company, but driving a leased vehicle makes you accountable to the vehicle’s actual owner as well. This is usually a leasing agency or car dealership. There’s typically also a line in your leasing contract where you agree to notify your insurance company immediately if there’s ever an accident although that’s good practice anyway.
It’s not uncommon for there to be additional requirements in your contract when it comes to getting your leased vehicle repaired. The owner wants what’s best for the vehicle which is why they so often require repairs to use only manufacturer approved parts rather than cheaper third party alternatives. Failure to abide by this can incur serious penalties at the conclusion of your lease.
Covering Damages
A leased car accident can have a number of parties involved, each of which may be liable for damages in one way or another. The first party involved is the leasing company, which owns the leased car. Lease agreements between the leasing company and the driver of the car will typically specify who is responsible for any damage done to the leased car in the event of an accident. In most cases, the leasing company will be the one liable for the damages.
The driver of the leased car should have insurance coverage that will cover any damages to the leased car in the event of an accident. Depending on the terms of the lease agreement, the insurance company may be liable to cover the damages to the leased car, or the leasing company may be responsible for the damages.
Depending on the terms of the lease agreement, the driver may be liable for any damage done to the leased car in the event of an accident. The driver may also be liable for any medical bills incurred as a result of the accident.
With the circumstances of the accident, this may be another driver, a pedestrian, or another party. This party may be liable for any damages to the leased car and for any medical bills incurred as a result of the accident.
In the event of a leased car accident, there can be a number of parties involved who may be liable for damages. The leasing company, the insurance company, the driver of the leased car, and the responsible party may all be liable for damages in one way or another. It is important to review the lease agreement to determine who is ultimately responsible for any damages that occur.
Insurance and Making a Claim
Leasing contracts require you to have collision and liability insurance, so you’ll never have to worry about getting into an accident without insurance. Repairs will always be covered by your own insurance company at least. If you believe the other person was at fault, however, you are always free to pursue a claim against them.
The process for making a claim is the same as it would be if you owned the vehicle yourself. If the other person’s insurance company doesn’t want to pay, you can make a claim and take it to court. However, that process is very long and expensive, so it’s usually best to go through your own insurance if the worst happens.
Filing An Insurance Claim
If you are involved in an accident in a leased car, it is important to understand the process for filing an insurance claim. First, you will need to contact your insurance company to inform them of the accident. They will likely need to contact the leasing company that owns the leased car to confirm the details of the accident. The leasing company will most likely provide the insurance company with the necessary information to assess the claim.
The insurance company will then assess the damage to the leased car and make a determination of who is liable for the damages. If the accident was caused by another party, the insurance company may attempt to contact the responsible party’s insurance company to cover the costs.
Once the insurance company has made a determination of who is liable for the damages, they will assess the cost of the repairs and provide a payment to the leasing company. This payment will cover the cost of the repairs to the leased car. The leasing company may also bill the responsible party for any additional damages or costs.
It is important to understand the process for filing an insurance claim when involved in an accident in a leased car. The insurance company will be in contact with the leasing company to assess the claim, determine who is liable for the damages, and provide a payment to the leasing company. The leasing company may also bill the responsible party for any additional costs or damages.
Gap Insurance
Gap Insurance is a type of insurance coverage that helps to cover the difference between the amount that an insurance company pays for a car accident and the remaining balance owed on a car lease. In the event of a leased vehicle accident, the insurance company will typically pay for the damage or repair of the vehicle based on the current market value. However, if the remaining balance owed on the car lease is greater than the market value of the vehicle, this gap in coverage can leave the lessee responsible for the difference.
Gap insurance helps to protect the lessee from unforeseen financial losses if they are involved in a car accident. In the event of an accident in a leased vehicle, the insurance company will typically pay for the repair or replacement of the vehicle, but the remaining balance owed on the car lease may still be greater than the market value of the vehicle. Gap insurance will cover this difference so that the lessee is not responsible for any additional costs.
Gap insurance can also provide protection in the event of a total loss. In the event of a total loss, the insurance company will typically only pay the market value of the vehicle, which may be significantly less than the remaining balance owed on the car lease. Gap insurance will cover this difference so that the lessee does not have to pay the remaining balance out of pocket.
Gap insurance is an important part of any car lease and can help to protect the lessee from financial losses if they are involved in a car accident. Gap insurance will cover the difference between the amount that an insurance company pays for a car accident and the remaining balance owed on a car lease. This coverage can help to provide protection in the event of an accident or total loss of the vehicle.
Hiring A Car Accident Attorney
When involved in a car accident, it is important to seek the help of a car accident attorney to represent your interests. A car accident attorney will be able to advise you on the best steps to take to ensure your rights are protected. They will also be able to help you navigate the process of filing a claim with the other driver’s insurance company or your own driver’s insurance company if you have leased a vehicle.
The first step in the process of hiring a car accident attorney is to collect all of the necessary information about the accident. This includes the details of the accident, as well as the contact information of any witnesses or other drivers involved. This information will help the car accident attorney to build your case and make sure that you receive the compensation you deserve.
Once you have collected all of the information, you can begin the process of finding a car accident attorney. You can search online for attorneys in your area or contact a local bar association for a list of attorneys. It is important to ask any potential attorneys about their experience handling car accident cases, as well as any fees associated with their services.
Once you have chosen a car accident attorney, they will help you to file a claim with the other driver’s insurance company or your own driver’s insurance company if you have leased a vehicle. The car accident attorney will also help you to negotiate a fair settlement that covers the cost of any medical expenses, damage to your vehicle, and other losses.
Hiring a car accident attorney is an important part of the process of filing a claim after a car accident. A car accident attorney can help you to navigate the process of filing a claim with the other driver’s insurance company or your own driver’s insurance company if you have leased a vehicle. They can also help you to negotiate a fair settlement that covers the cost of any medical expenses, damage to your vehicle, and other losses. It is important to find an experienced car accident attorney who can help you to ensure that your rights are protected and that you receive the compensation you deserve.
Leasing Company Accident Policies
When leasing a vehicle, it is important to understand the collision policies associated with the lease agreement. Car accidents can be expensive, and many leased vehicles are not covered for damages or repairs due to an accident. It is important to be aware of the collision coverage and gap coverage included in the lease agreement, as these can provide important protection in the event of a car accident.
Collision coverage will cover the cost of repairs or replacement of the leased vehicle, as well as any medical expenses associated with the accident. This coverage is typically required by law, and it is important to ensure that the collision coverage in the lease agreement is sufficient to cover any potential damages.
In the event of a total loss, the insurance company will typically only pay the market value of the vehicle, which may be significantly less than the remaining balance owed on the car lease. Gap coverage will cover this difference so that the lessee does not have to pay the remaining balance out of pocket.
It is important to understand the collision policies of any vehicle lease agreement before signing the lease. Collision coverage and gap coverage can provide important protection in the event of a car accident, and it is important to ensure that the coverage included in the lease agreement is sufficient to cover any potential damages. Understanding the collision policies of a lease agreement can help to protect the lessee from financial losses in the event of an accident.
Nashville Personal Injury Lawyer
Navigating aftermath of a car accident in a leased vehicle can be tough alone which is why you could use an experienced personal injury lawyer at your side. At Mitch Grissim & Associates, we will fight to get you the compensation you deserve. Contact us today for a free consultation!
