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Many people drive a leased car because it is expensive to buy a brand-new car. However, when an accident in a leased car happens, it can become a headache to deal with the situation.
This guide is going to explain everything that needs to be done if a car accident happens in a leased car.
What to Do First After the Car Accident
The first thing that needs to be done after a car accident is to check for any personal injury. Once it has been determined that everyone is fine, the police should be called to the scene. This is because the police are going to want to provide a ticket to the person at fault and write up a police report.
After speaking to the police, drivers must exchange the appropriate information with the other driver so that they get their contact information and insurance company details. Also, they may take the opportunity to document the scene with a camera before leaving.
The Insurance Company
Every leased car requires the driver to have car insurance. This can be found in the lease agreement. Also, in the lease agreement, it can be found who to contact after an accident has happened. The driver may need to call the dealership or the leasing company to be made aware of the accident.
Additionally, every insurance company states that the driver must inform the company about their leased car accident.
Afterward, the insurance company is going to send someone who can inspect the leased car's damage. This is going to determine how the insurance company is going to adjust the insurance prices. Also, depending on the value of the vehicle, the insurance company covers a certain amount when it comes to the repairs.
Speaking with the Leasing Company
It is essential to contact the leasing company because there are specific terms in any lease contract that states what to do when the car needs repairs. Some companies may not want the driver to fix the car with any after-market parts, so it is essential to know what the company wants.
Additionally, the leasing company is going to provide the driver with two options.
Fix the car and carry on with the car lease.
Cancel the lease, but this depends on the damages done to the leased car.
What Happens If the Leased Car Is Totaled?
If a leased car is totaled, then the driver is going to need to continue with the payment of the leased car. However, if the car is entirely written off, then the insurance company pays for the car's current worth. The lease ends when the current value of the car ends up equaling the remaining balance of the leased vehicle.
Sadly, it is likely that the driver is going to lose money because they are going to owe the leasing company money. However, there is gap insurance that could help pay the difference. Additionally, gap insurance can help move the amount to a new lease.
Drivers may check if there is gap coverage in their lease contract.
Who Is Responsible for the Damages in a Leased Car?
There are three things that matter when there is an accident in a leased car. It depends on the extent of the damage, who caused the accident, and insurance coverage. If the other driver is liable, their insurance company pays for the damages. That means they are liable to pay for the leased cars repairs or the vehicle's market value if it is totaled.
However, there is always the chance that the other insurance company is going to deny all liability and refuse to pay. If this happens, drivers may call the insurance company and negotiate the repairs covered through the insurance coverage. Every leasing company requires all drivers to have collision and comprehensive coverage, so the repairs on the leased vehicle can be fixed.
Additionally, if the leased car accident has left the leased vehicle totaled and the other driver is at fault, the driver can still sue for losses. Having a leased vehicle does not change the driver's rights to a compensation claim.
How Do Car Accidents Affect a Car Lease?
The car lease is not affected by a car accident. Even though an accident has happened, the driver still needs to pay off the value of the car to the leasing company. However, repairs may be covered with the insurance policy. Additionally, the driver can also purchase gap insurance, paying the difference if they owe the leasing company money.
Handing in a Leased Vehicle with Damages
Many people do not understand that any damages sustained to the leased car are not going to disappear when a new lease is picked up. No matter what a dealership informs the driver, someone is always responsible for the damages, so someone needs to pay.
When the driver receives a new lease, the damages from the previous car will be transferred onto the new lease, which means that the driver will be paying for both leases at one time.
Calling the Professionals
If a driver has gotten into a car accident and does not know what to do, it is essential to seek out the right help. This includes asking for help if one gets into a car accident that is their fault but no ticket was given. A St Louis MO car accident attorney at Powell Law Firm can help answer any questions a driver has about making a claim.
This is important because if the driver of the leased car is not at fault, then getting compensation from the other party can help with the leased car payments. Drivers may call Powell Law Firm at any time and ask to speak to someone.
Conclusion
Car accidents are scary for every driver involved, and it is important to follow the correct steps when one happens. Drivers must check for any personal injuries before calling for the police. Afterward, they must gather as much evidence as needed and give it to the leasing company and the insurance company.
Finally, drivers must get the justice owed when the other driver is at fault. Anyone who may need help with their case, such as understanding the matter of the public embarrassment law in relation to a car accident, may call the Powell Law Firm to speak to the right person who can help.