What Happens If You Wreck a Leased Car?
Instead of purchasing a car, many drivers in this day and age prefer to use leased vehicles as it provides a standard level of convenience. A brand new, more luxurious vehicle every three to five years and cheaper car payments sounds appealing enough, right?
Many people love it for the reasons mentioned above, but there are a few more benefits to discuss below.
The Benefits of a Leased Car
Other benefits of using a leased car include:
Low maintenance costs
Receiving a great value of the vehicle
The manufacturer warranty covers the car throughout the lease agreement
Those are only three benefits of leasing a vehicle over buying one, but what if the driver is in an auto accident? What role does an insurance company play in an accident in a leased vehicle? Furthermore, can leased car accident repair costs be negotiated?
Car Accident Procedures
Getting into an auto accident with leased cars is like any other vehicle crash. Duties include sharing relevant information with the other driver, recording property damage, and checking on personal injuries. However, if the other driver caused the accident, the plaintiff would be allowed to sue them for monetary damages, especially if left with a totaled car, medical care, lost wages, and more insurance costs.
This article contains helpful information concerning what happens if a leased vehicle crashes and is aimed at helping people understand the topic better.
It is also written to help people learn about Keating Firm LTD and the excellent personal injury protection the law firm provides. The law firm offers a free consultation concerning leasing agreement matters and has helped many people get compensation from the at-fault driver.
What Happens If a Leased Car Is Wrecked?
Once a motorist of a leased vehicle is in an accident, he should pull over to the side of the highway remaining in the same place. The driver must then call an ambulance if any injuries or fatalities occurred from the lease car collision.
Additionally, the victim and the at-fault party must follow regulations concerning police reporting of the collision by calling the police station and requesting law enforcement to file an accident report.
Contact the Insurance Company
Of course, the insurance provider and leasing company need to be notified of the accident to process the damages in a repair shop. The leased car driver has two options here: to fix the vehicle from their own pocket and keep the lease or, depending on the extent of the damage, possibly cancel the monthly payment.
Typically auto and gap insurance (if the driver has it) covers any losses incurred from leased vehicle car accidents. Therefore if the car is fixable, the insurance company should compensate for the necessary repairs, minus any deductibles through a gap coverage plan.
What Happens If a Leased Car Is Totaled?
If a leased car is totaled, the leasing company still needs to pay for the vehicle's market value. In the case of a total vehicle loss, most insurance companies pay up the current value for the damaged lease car.
In most cases, drivers of a leased car still owe the leasing company money, but if they had gap insurance, it could assist in paying the remaining balance. The person could use the exact amount the carry insurance paid to start a new lease with the car company.
Who Is Responsible for Damages In a Leased Car Accident?
What happens when a leased car is wrecked is determined by the severity of the damage, but in most cases, insurance coverage takes care of the remaining payments. If another driver is to blame for the car accident, the driver's insurance company is liable for the damages based on the lease terms.
Generally, the payout from the other driver's insurance company goes directly to the vehicle leasing company, and actual losses are paid out to the victims, similar to an automobile accident insurance claim.
When an insurance company denies liability on the driver's behalf, it's recommended that motorists check their complete coverage insurance requirements concerning repairing the vehicle. Comprehensive and collision coverage and bodily injury liability are required by most leasing companies and are similar to a lender who borrows a car loan.
Drivers who want complete protection on the road can use comprehensive coverage to their advantage when caught in an accident in a leased car. Insurance companies all over the country offer this coverage so that drivers can secure their own car for the value of the vehicle.
Insurance Company Pay Outs
Suppose the other motorist was at fault and the victim insurance paid for the repair and personal injury; it usually files an admit fault claim with the other insurance company to compensate for the actual value of fees paid out. When a leased motor vehicle is wrecked, and it's not the driver's fault, they have the right to sue for damages to the leased car.
It might be the only way to pay for damages on the leased cars, so it is recommended that car accident victims go this route to get the compensation they deserve.
Find a Car Accident Firm
People who have struggled with cases like this have used Keating Firm LTD because of its excellent client-attorney relationship and 100% confidential. The firm has been helping accident victims with a free consultation for many years and prides itself on getting plaintiffs the compensation owed.
How Does an Accident Affect a Car Leasing Company?
An accident does not affect a car lease because the person may still owe the leasing company the car's market value. On the other hand, insurance coverage should pay for the repairs on the motor vehicle, which should be handled by the claims adjuster from the same insurance agency.
Gap coverage can also help the affected party pay the difference if the leasing company requires the total value of the leased vehicle.
Turning in a Damaged Leased Car
Some silly people believe that any damages to their leased car can be waived if they enter into a new lease. These losses do not go unforgiven as someone must be responsible for the damages caused, as the leasing company does not cover it. Even if another motor car is leased from that dealership, the losses must still be settled with the body shop or automobile sale store.
Though some may not have to pay out-of-pocket damages to the leasing company, getting a second vehicle lease from the same dealership can leave them with a worse trade-off. Compensation from the person's previous automobile gets added onto the new lease, and it is the individual's responsibility to pay interest and the new leased vehicle.
The idea is simple, increase the price of the new car to settle the damages done to the previously leased vehicle. In addition, the leasing company might also utilize some of the incentives on the new car to cover cracks on the automobile involved in an accident.
Does an Insurance Company Cover a Leased Car?
Insurance coverage is required when someone buys a car, leases a vehicle, or takes out an automobile loan. The minimum standards differ from state to state, with most regions requiring the driver's insurance provider to cover injury and property damage liability. Nashville TN auto accident lawyers can also assist with a mandate in most states in addition to uninsured motorist coverage.
Leased Car Legalities
When there is an accident in a leased car, there are higher levels of insurance than the minimum legal requirements. The leasing company is the vehicle's legal owner, and it wants to protect the car in case of an accident. Additional insurance is most likely needed due to the compensation leasing companies require when a car accident occurs.
Collision insurance is often included in these packages and aids in protecting the vehicle in the event of a crash. Riding into an object, such as trees, poles, and other automobiles, are covered on this plan, so all member's accident types are considered. The insurance company provides its clients with all the general information regarding the insurance product they choose and what the policy covers.
People wanting more comprehensive coverage can upgrade their account with their provider, but it does result in higher vehicle insurance premiums. Insurance company clients should be aware that there is a free consultation when updating their contact information or requesting a more exclusive package.
Being involved in a motor vehicle accident is a horrible experience for anyone included, and if the automobile is on a lease, it makes things a little more complicated. Seeking out professional assistance is recommended for people who are involved in incidents with a leased motor vehicle.
A law firm known as Keating Firm LTD is at the forefront of personal injury and automobile accident claims recovery. Our company has been helping individuals retrieve the settlement they deserve by courteously and confidentially delivering the relevant documents to all parties involved. The Keating Firm LTD provides clients from Las Vegas to Ohio with an expectational service, assisting them with various legal matters listed in the recent posts categories.