What Happens if You Crash a Leased Car?

Do you know what happens if you crash a leased car? Any car accident is super stressful, but if you are in a rental or leased car, you might be even more anxious. Now instead of just four parties (you and your car insurance company + the other driver and his or her insurance company) being involved, your side of the accident will involve a third party. Furthermore, most drivers are not familiar with what to expect in this case. Anywhere from 25-35% of the cars on the road are leased. If you aren’t getting a reasonable payout from the insurer, reaching out to a Las Vegas car accident lawyer is a good idea.

After the Collision

Because the leased car is “yours,” the accident process will be very similar to a car you purchased. Generally speaking, you’ll file a police report, seek medical attention (if needed), notify your insurance company, get the car to a body shop, have it fixed, and then one of the insurance companies will pay for any covered damages.

You should also get in touch with an experienced car accident attorney. While many injured victims believe they can handle insurance claims alone, an attorney can be a huge benefit in many ways, often increasing the chances of full compensation.

An attorney offers sound legal advice as you file a personal injury claim against the negligent driver. They will evaluate your accident and pursue all injury-related damages to maximize the settlement value. They can advise you whether to accept a settlement offer or litigate the matter in court, depending on the nature of your losses. 

Car accident attorneys also work on a contingency basis, which means you will only pay fees if they win compensation for you in the case.

Repaired With Factory-Authorized Parts

One difference with being in a leased car in an accident is that the car owner may require that the car be replaced with parts made by the auto manufacturer (no Auto Zone brand replacement parts, for example). These are called OEM parts (Original Equipment Manufacturer). Essentially, the owner (dealership or automaker) will want everything on your Honda Passport to be made by Honda or whatever came in the Honda when it was rolled off the assembly line.

This means if you had the Eddie Bauer interior before the crash, you’d need to ensure the Eddie Bauer interior was installed by the body shop after the crash. This way, when you turn in the car after your lease period, it will be as similar to what you drove off the lot with as possible.

Leasing companies insist on factory-authorized parts to avoid violating the new vehicle warranty terms. Factory-authorized parts are primarily available in dealerships or authorized representatives of the automaker.

If a vehicle owner conducts do-it-yourself (DIY) repairs or visits an independent repair shop, they risk voiding their lease agreement or lemon law protection. Lemon law allows people who have bought or leased defective vehicles to obtain a refund or replacement from automakers.

What Happens if You Crash a Leased Car and is a Total Loss

In this case, again, it is going to essentially be the same process as if you had purchased the vehicle and were financing it. The insurance company will pay out the current value of the vehicle (not necessarily what your balance on it is). Many of these terms may also be spelled out in your lease agreement as well. Be sure to ask when you lease the vehicle what the procedures are for these types of things.

If someone else was to blame for the accident, you can file a claim to have their insurance cover all the costs. The following is involved in the process of making a claim and obtaining compensation for accident-related losses:

• File an insurance claim
• Take the vehicle for inspection at an approved body shop
• Submit estimates and accident-related paperwork

In Nevada, the negligent driver’s insurer is liable for accident-related losses, though you want an experienced car accident attorney handling the claim process if you have injuries and a totaled car.

What If You Return the Leased Vehicle Damaged

If your car is driveable and you prefer not to file an insurance claim or fix it, yes, you can technically turn it in at the end of your lease period with the damage. Your lease makes you responsible for any damage one way or the other, so there is no real advantage to doing this unless it’s just a small ding or scratch. Most leasing bodies (manufacturer or dealership) are not going to penalize you for a few scratches or dings after a three-year lease. That is pretty standard wear and tear.

Types of Damage You Might be Responsible For

Depending on the terms of your lease agreement, you might be responsible for the following damages:

• Tires with substantial thread wear
• Damages on the front and rear bumpers
• Replacement of damaged wheels
• Large dents with paint damage
• Cracked or chipped glass

Contact Emergency Services

Many car accident victims hesitate to call the police or for an ambulance, even when in a serious situation. The fear of medical bills may prevent an accident victim from making a potentially life-saving call.

You should always report an accident with any injuries or property damage to the police. Their report can be a critical document when pursuing insurance claims or proving you were not to blame. If the police believe the other driver violated the law, they can issue a citation or even arrest them. Such cases can provide evidence of liability in your car accident claim.

Further, emergency medical services can be imperative for you or anyone else with serious injuries. Having a professional assessment at the scene can determine whether you need an ambulance ride or should take yourself to the emergency room. Prompt treatment is necessary for your health and to obtain compensation later.

It is worth it to call emergency services following a serious collision, especially if you are injured and not at fault.

How Does Gap Insurance Help With a Leased Car Accident?

Gap insurance is an optional add-on you can acquire when leasing a vehicle. The coverage caters to the gap between the payout you receive from an insurer and the finance owed on the lease if the car is declared a total loss.

Many insurers will pay a settlement value equivalent to the vehicle’s value during the accident. As a lessee, you may face a financial cost shortfall, necessitating gap insurance coverage.

Gap insurance only applies if the payout falls below the amount outstanding on the lease or loan. It is worth considering gap insurance to obtain peace of mind when leasing a vehicle.

Contact Our Las Vegas Injury Attorneys Now

If you’ve been in a crash in a leased vehicle in Las Vegas, Cloward Trial Lawyers can help. We handle car accidents and injury cases every day. Our Las Vegas personal injury lawyers are standing by to answer your questions and start your claim process. To discuss your accident details with us, call 702-605-5000 or visit our online contact form.