Car accidents in leased cars pose some unique and interesting issues. When you’re in an accident in a leased car, you need to know how to report the accident, what’s going to happen to your vehicle and what legal standards apply for financial compensation. The Law Offices of Gregg Durlofsky personal injury law firm represents people who are in accidents in leased cars. Here’s what you need to know about car accidents in leased cars from our Bethlehem personal injury attorney team:
Do I have to report an accident in a leased car?
Yes, you have to report an accident on a leased car. All states have laws that require drivers to report accidents to law enforcement. In addition, you must report the accident to your insurance company and to your auto dealer or other leasing company. It’s always in your best interests to report an accident in a leased car to law enforcement, your insurance and your loan company.
What happens if you crash a leased car?
If you crash a leased car, your insurance pays you for the value of the vehicle minus your deductible. However, it’s still up to you to pay the remaining amounts that you owe on your lease agreement. You may have additional insurance that covers the outstanding balance with the loan company. Alternatively, you may roll the outstanding balance over to a new loan for a new vehicle.
When a leased car is totaled what happens?
When a leased car is totaled, what happens is that you receive compensation from your insurance. The compensation you get from your insurance is based on the actual value of the vehicle at the time of the crash. That amount may be different from the amount you still owe on your lease agreement.
What happens if my car is totaled and I have gap insurance?
Drivers of leased cars often have gap insurance. Gap insurance can step in and pay the remaining amount that you owe on the lease. Many lenders require you to have gap insurance as a condition of the lease. If you have gap insurance, it should pay the remaining portion of your car lease. You’re free and clear to lease another vehicle or make other arrangements.
Repairing a leased car after an accident
In cases where your car can be repaired, your insurance company may recommend a body shop for repairs. Your insurance pays you for the cost of the repairs minus your deductible. Be sure to check with the leasing company about repairs to ensure that you comply with the terms of your leasing agreement.
Leased car accident not my fault
When a leased car accident is not your fault, the same standards of legal liability apply that apply in all other car accident cases. You may receive financial compensation from the responsible driver. You must take legal action to bring your claim.
Contact our personal injury attorney for accidents in leased cars
Have you been in an accident in a leased vehicle? You may deserve financial compensation. Let the Law Offices of Gregg Durlofsky personal injury law firm review your case. Our personal injury attorney team is passionate about helping accident victims receive justice under the law. Your call is free.
