Leasing a car offers several benefits including not having to worry about reselling, fewer costly repairs, and the option of driving a brand-new car. However, what happens if you crash a leased car?
Navigating the legal path in the aftermath of a leased car accident can be tricky. There are several legal and financial considerations, some of which can be quite challenging to navigate. However, knowing what steps to take can make the process easier for you. Consult with an attorney at The Law Offices of Jorge Luis Flores, L.L.C to get legal guidance through each step of the process.
Understanding Lease Agreements
Lease agreements for cars are essentially rental contracts for a specific period. Typically, lease agreements are on a yearly basis, but they can also be for shorter periods. Unlike financing, where you take out a loan and make payments to eventually own the car, a lease involves paying to use the vehicle temporarily.
At the end of the lease term, you simply return the car instead of gaining ownership. Some agreements offer you the option of paying a certain amount at the end of the lease term to win the car.
The lease agreement typically includes restrictions on the mileage limits and has a policy that describes what happens if the car gets involved in an accident. These clauses often make car leasing claims complex. Drivers of leased cars are generally responsible for repairs not covered by the warranty, while accident costs are managed by the at-fault driver’s insurance.
Regular maintenance, such as checking tires, brakes, and exhaust systems, is essential. Most lease agreements also require routine servicing and passing MOT inspections. Generally, no standard rules apply to all lease agreements, so each case has to be handled according to the terms outlined in the lease contract.
It helps to review the lease contract before signing. Knowing your rights and responsibilities as outlined in the terms of the lease can help you make informed decisions about how to handle the aftermath of a leased car collision.
Immediate Steps to Take After a Leased Car Accident
If you get into an accident in a leased car, the first priority is safety. You need to ensure you move to a safe spot where you aren’t at risk of further collisions. Assess yourself for injuries and seek medical attention as soon as possible.
If you can help others involved in the accident, that would be helpful, however, refrain from moving severely injured people as that may make the injury worse. If your injuries are minor, you should get a medical check-up. Not only can this help treat injuries but it’s also vital for your personal injury claim. Medical records often play a critical role in insurance claims or lawsuits as they can help prove how the accident happened and the severity of the injuries.
To ensure everyone involved in the accident gets timely medical attention and that the incident gets reported to law enforcement, you need to call 911 and inform them about the accident, including the location of where it happened.
As the accident involved a leased car, you need to notify the leasing company. Leased vehicles remain the property of the lessor. Your agreement likely includes clauses about handling accidents. They may require you to follow a particular process, such as using approved repair shops or submitting documentation. Failing to notify them promptly could result in penalties or additional fees.
Gathering evidence from the crash site can also be useful if you plan on filing a claim or lawsuit. Try to capture photos from the accident site, gather eyewitness contact information, and gather any other evidence that you feel may help your case.
If the accident is covered by an insurance company, then you must also notify them about the accident. They might have certain steps you need to take to ensure you initiate your insurance claim. However, be careful about what you share with the insurance company. Don’t admit to being at fault or sharing anything that could undermine your claim.
After you have taken care of all the immediate steps in the aftermath of the leased car accident. You need to review your lease agreement. This might be a good time to get an attorney involved in the process. The attorney can help you with the clauses related to accidents including repairs, insurance claims, and penalties for excessive damage. After a careful assessment of your case, the attorney can also guide you on your best legal options.
Insurance Considerations
When you lease your car you may be given an option to get insurance on it from the leasing company, or you could have got coverage from your own insurance company. Either way, it’s important to understand the type of coverage you have and what it includes. Typically, leasing companies require drivers to have comprehensive collision coverage, which protects against damage to the leased vehicle in case of an accident.
You can get insurance coverage from the dealer or leasing company, but they may come with higher premiums compared to using your insurance company. However, if you choose to get your own insurance, you must ensure it meets the leasing company’s requirements for coverage, including bodily injury liability insurance coverage.
It’s also important to be aware of the deductible and any exclusions in your policy. The deductible is the amount you have to pay out of pocket before the insurance coverage kicks in. While a high-deductible plan may have lower premiums, you need to be prepared to cover a larger amount yourself in the event of a claim. You may also be able to recover medical bills from your auto insurance provider.
Legal Ramifications And Support For a Leased Car Accident
The legal ramifications for car accidents involving a leased vehicle can often be more complex compared to an accident with a privately owned vehicle. A key point of contention in leased car accident cases is establishing liability, especially if there are disagreements regarding who was at fault. In such cases, evidence plays a crucial role.
In cases where disputes arise about coverage or damages, pursuing legal support early on can help protect your rights. An experienced attorney can communicate with your insurance provider and the leasing company, ensuring you receive fair treatment throughout the claims process.
Financial Consequences and Solutions
One of the main benefits of having a leased car is that it offers less financial burden compared to buying and owning a car. However, leasing also comes with some financial obligations, especially in cases where there’s an accident.
Even with insurance coverage, the lessee may be responsible for paying the deductible, gap insurance shortfalls, and repair costs that are excluded from the policy. Additionally, should the car be declared a total loss, the difference between what’s owed on the lease and the payout from the insurance could become the responsibility of the lessee.
The consequences of crashing a leased car—including legal ramifications and financial considerations—highlight the importance of getting help from an experienced car accident attorney.
The attorney can guide you on each step of leased car accident procedures. To get car lease crash legal advice, please contact us at The Law Offices of Jorge Luis Flores, L.L.C. We offer auto accident legal services including an initial assessment of the case, gathering evidence and insurance claims assistance.