Involved In A Leased Car Accident? Here’s What You Should Do

What Happens If You Crash A Leased Car?

If you are involved in a leased car accident, you will generally follow the steps you would have in any other type of crash. However, some may differ. 

The standard steps to observe include the following:

• Checking to see if you or anyone else is injured
• Calling 911 if someone is injured
• Reporting the accident to law enforcement
• Exchanging information with the other driver
• Collecting witnesses’ contact details and statements

Understanding Your Leased Car Agreement

Rereading your leased car agreement after an accident is crucial to ensure you do everything by the book. Most leased car agreements specify when to notify the company after an accident. It’s critical to call the company and let them know you were involved in an accident within the specified timeframe.

Not only does reporting the crash to the company ensure you follow your contract, but you will also have the opportunity to be guided on what to do next.

Another factor usually included in a leased car agreement is how repairs should be done. Even though you are responsible for fixing any vehicle damages during the leasing period, the leasing company may have rules on how repairs should be done. The agreement may require you to only repair the car at the dealership or a shop(s) they approve because some shops may do repairs that don’t meet manufacturer standards.

Going to a shop not certified by the leasing company may result in penalties, additional charges, and higher lease payments.

You should also check the clause discussing normal and excessive wear and tear when reading the leasing agreement. Our team can help you understand how the agreement defines normal and excessive in this context. Accordingly, you can determine if the damage caused by the accident is beyond the acceptable wear and tear and, in turn, estimate your financial responsibilities for returning the car to an acceptable condition. 

Who Is At Fault After A Leased Car Accident?

Various parties can be responsible for a leased car accident. The first party is the other driver. If a driver around you makes a mistake, such as speeding, failing to yield, tailgating, or drunk driving, and crashes into your leased vehicle, they may be at fault. Hence, they should compensate you.

You may also be partially or entirely at fault for a leased car accident if you make a mistake that causes/contributes to it. Nevada has a comparative negligence rule, which proportions damage by fault. Thus, your percentage of fault will be considered when determining compensation. Lastly, if the leasing company gave you a defective vehicle, it may be responsible for the crash.

What If It Is Not My Fault In A Leased Car Accident?

Nevada is an at-fault state, meaning a driver who is negligent on the road and injures another should pay compensation. Therefore, if a leased car accident is not your fault, you have the right to receive compensation to cover your medical expenses, lost wages, and property damage. You can also claim compensation for non-economic damages, like pain and suffering, disfigurement, mental anguish, and loss of enjoyment.

You need to gather sufficient evidence at the scene, including photos, the contact information of the witnesses, witness statements, the police report, and traffic camera footage, if possible, to prove the other party was at fault.

What Happens If I’m Partially Or Entirely At Fault?

In cases where you are partially at fault, your compensation is reduced by your percentage. For example, you are 40% at fault, and the cost of repairing the car is $10,000. You would get $6,000 from the other party and would need to cover the other $4,000 yourself. You can file this against your own insurance but must pay any deductible. 

If you are entirely at fault, you file the accident claim with your insurance company. Keep in mind that if the other party sustains injuries and damages, you and your insurance company are responsible for those as well.

Returning A Leased Car After An Accident

Your agreement will typically specify what to do before returning a leased car after an accident. Generally, you should have reported the case and made repairs according to the company’s regulations.

When you return the car, the leasing company will perform a wear and tear evaluation. They will examine every part of the vehicle to determine if it’s in an acceptable condition. Since you were involved in an accident, they will also assess the repairs.

It can be beneficial to get a pre-inspection to be well-informed about its condition before the company’s evaluation. You should also take photos. Documenting the car before returning can offer solid evidence if a dispute arises.

If you disagree with the company’s wear and tear evaluation, review the leasing agreement to confirm if there is a dispute resolution process. Our car accident attorneys in Nevada can help you during this process, protecting your rights and finances.

Lease Termination And Double Charges For Accident Repairs

A car lease agreement can be terminated after an accident if the vehicle is totaled (the cost of the repairs would be more than 65% of the car’s value). 

At the end of your leasing agreement, upon returning the vehicle, you may pay double charges for accident repairs if, after evaluation, the leasing company believes the repairs were done incorrectly, or perhaps you didn’t go to a shop they approve of.  Consequently, they will need you to pay for the do-over repairs.

One of the reasons you may fail to go to a shop certified by the leasing company is if it doesn’t accept your insurance company. In such a case, it’s critical to call your leasing company for further instructions instead of going to another shop. The latter decision may result in double charges for accident repairs. 

Understanding Insurance For Leased Cars

When you lease a car, you are required to have insurance as you would if you had financed the car. According to Nevada law, you need a minimum motor vehicle liability insurance coverage of $25,000 in bodily injury per person, $50,000 in bodily injury per accident, and $20,000 in property damage.

Your leasing company may also require you to purchase higher coverages. You may also need additional coverage, including comprehensive and collision coverage and gap insurance.

What Happens If You Crash A Leased Car Without Insurance?

If you are at fault, you will be liable for the injuries and damages resulting from the crash. If another party caused the accident, your leased car not having insurance may not affect your case. You can bring a claim against the other party. However, you may still be in legal trouble for driving a vehicle without insurance.

Common Insurance Mistakes To Avoid When Leasing A Car

The first common insurance mistake people make when leasing a vehicle is buying too much coverage. Even though insurance premiums for a leased car can be higher, do enough research to determine the right amounts. You should also not purchase insufficient coverage; this can result in paying thousands of dollars if an accident happens.

It’s also crucial to estimate your mileage accurately. If you exceed the mileage limit on your agreement, your insurance company may refuse to pay out a claim.

Another common insurance mistake to avoid when leasing a vehicle is not having gap insurance, which is vital if your leased car becomes totaled.

Role Of Gap Insurance In Leased Car Protection

If your leased car is totaled in an accident, your insurer will pay the leasing company the car’s cash value, which might be less than what you still owe. Then, you will be responsible for the remaining balance, which you can pay out of pocket or use gap insurance, if you have coverage, to cover the difference.

Many leasing agreements require drivers to have gap insurance. Regardless of the requirement in your contract, it’s advised to purchase this insurance.

How To File An Insurance Claim For A Leased Car Accident

When you are involved in a car accident in a leased vehicle, in addition to calling the leasing company, you should call your insurance company immediately. If your car is repairable (not totaled), you can file a claim to cover the repair costs. 

Upon calling your insurer, the agent will ask you to provide details regarding the accident. These include the location, date and time of the accident, how the accident happened, any police report number, and the information of the other driver, which you should have collected when exchanging information. 

Your insurer may also ask about the weather conditions, road conditions, and surroundings. They can also inquire if you have taken photos of the damaged vehicle(s) and your injuries, which you should submit.

Besides speaking to an agent, you can file an insurance claim online or through an app.

Do I Need An Attorney To Seek Compensation For The Injuries I Incurred In A Leased-Car Accident?

With the complexities of leased car accidents, it’s necessary to work with an attorney when seeking compensation. Besides looking to get a payout from your insurance company to pay for repair, you may also need to file a claim against the at-fault party to cover the injuries you may have sustained.

At Adam S. Kutner, Injury Attorneys, our legal team is skilled in handling cases involving leased cars. We can help you receive the compensation you deserve, whether the vehicle is repairable or totaled.