If you’ve been in a leased car accident, you might be wondering who’s responsible for the repairs—or worse, what happens if the vehicle is totaled. The short answer is, it depends on who caused the crash, what your lease agreement outlines, and whether your insurance covers the full value of the car.
While similar to any other car crash, leasing adds an extra layer of complexity that can leave drivers, especially parents, confused and overwhelmed. Let’s break down what really happens after an accident involving a leased vehicle, and what to do next to protect yourself.
Many drivers are opting to lease a vehicle instead of purchasing the vehicle. There are many advantages to leasing a vehicle, including lower car payments, a new vehicle every few years, a more expensive vehicle, and lower repair costs because the vehicle is under factory warranty during the lease.
However, what happens if you crash a leased car? Who is responsible for the damages caused by the accident? Our lawyer for car wrecks is here to set the record straight.
Key Takeaways
- A leased car accident is more complex due to the leasing company’s involvement and stricter insurance requirements.
- If the other driver caused the crash, their insurance pays, but documentation is crucial.
- Gap insurance is strongly recommended to avoid out-of-pocket payments after a total loss.
- Always report the accident to both your insurance company and the leasing company.
- Legal help is essential when navigating repair shop conflicts, fault disputes, or coverage gaps.
- When in doubt, contact a lawyer for car wrecks who can handle the paperwork while you focus on your family.
The Other Driver Caused the Crash
If the other driver caused the crash, their insurance is typically responsible for repairs or replacing the leased vehicle. As a parent, the last thing you want is to spend your evenings navigating insurance calls when your mind is on your kids’ school pick-up or medical bills.
The company’s liability would include paying for repairs to the leased car accident or paying the market value of the vehicle if it were totaled.
If the vehicle was totaled, the payment would go directly to the leasing company. The compensation for all other damages should be paid directly to you, as with any other car crash claim that was the fault of the other driver.
However, if the other insurance company disputes fault, you may need to contact your insurance company to discuss repairs under your policy. Leasing companies require that you carry comprehensive and collision coverage, just as a lender would require these types of insurance coverage if you purchased the vehicle with a loan.
If your insurance company pays for the repairs, it will pursue a claim against the other driver’s insurance if that driver was truly at fault.
One of the important things to remember when leasing a vehicle is to purchase adequate insurance coverage. You should discuss all types of automobile insurance, including gap insurance, so that you will not be liable for the payment of thousands of dollars to a leasing company in the event of a leased car accident.
What happens if you crash a leased car? Your leasing agreement likely has specific requirements for insurance coverage, and failing to meet these requirements could put you at financial risk.
Additional Steps to Take After a Leased Car Accident
Being in a car accident is stressful enough—but when the vehicle is leased, that stress can quickly double. Not only do you have to manage your health and insurance, but now you’re also responsible for communicating with the leasing company, following specific protocols, and avoiding any missteps that could cost you money. If you’ve been in a leased car accident, here’s a step-by-step guide to protect yourself legally, financially, and physically.
Call 911 and Get Medical Attention
Your health always comes first. Call 911 to report the accident and request emergency medical assistance if needed. Even if your injuries seem minor, see a doctor as soon as possible. Some symptoms—like whiplash or internal injuries—can take hours or days to show up. Timely medical documentation also strengthens your injury claim later.
Document The Scene
Take detailed photos of the accident scene, vehicle damage, skid marks, road conditions, and any visible injuries. If there are witnesses, collect their names and contact details. These records can be crucial when dealing with insurance claims, leasing requirements, and proving fault.
Report To Your Insurer
As soon as you’re safe, contact your auto insurance provider to file a claim. Provide all necessary information, including the police report number if available. Since leasing agreements typically require you to carry collision and comprehensive coverage, your provider will help initiate repair or replacement steps—even if fault is still being determined.
Notify The Leasing Company
Next, inform the leasing company about the accident. They’ll likely request a copy of the police or traffic report and may provide instructions for getting the vehicle assessed or repaired. Follow their protocol closely—some lease agreements specify which body shops you’re allowed to use.
Do NOT Admit Fault
Even if you think you might be at fault, don’t say so—especially to the leasing company or the other driver’s insurer—until you’ve spoken with an attorney. Admitting fault too early could compromise your case or affect your insurance claim. Let the investigation determine liability.
Coordinate Repair Estimates (Carefully)
If the vehicle isn’t totaled, your insurer and leasing company may each suggest different repair facilities. This can get tricky. Using the wrong repair shop could violate your lease terms or insurance policy. If you’re caught in the middle, speak with an attorney before moving forward.
Consult a Car Accident Lawyer
Navigating an accident is complicated enough—doing it with a lease agreement adds another layer of confusion. A car accident lawyer can review your lease, help you avoid violations, and make sure you get full compensation for your injuries and property damage. They’ll also handle communications with the leasing and insurance companies so you can focus on healing and getting life back on track.
Call a Lawyer for Car Wrecks for Assistance
If you are in a leased car accident, you could face several issues that are not common in accidents involving a purchased vehicle. A lawyer for car wrecks can help you navigate the complex issues related to car accidents and leased vehicles.
In addition to dealing with the insurance company, you must also deal with the leasing company. The leasing company adds another level of frustration that you must deal with as you try to focus on your recovery. An attorney can guide you through the process while protecting your rights and best interests.
The Law Offices of Blaine J. Barrilleaux assist accident victims throughout Louisiana as they seek compensation for injuries sustained in vehicle-related accidents. Call 337-989-1212 in Lafayette or 504-218-4419 in Metairie. Our personal injury attorneys offer free consultations for accident victims and their families.