What happens if you wreck a leased car

Further, what happens if you crash a leased car is the same as it would be after any type of vehicle accident. You should still share all relevant information with the other motorist, and you have the right to sue the other driver for monetary damages. However, things can get tricky when insurance companies become involved. If anybody received injuries, contact emergency medical services immediately. You must also follow all regulations regarding police reporting of the accident.

As such, call your local police station and request an officer to come file an accident report. Of course, you must also notify the leasing company and your insurance provider of the accident.

You may either fix it and keep the lease, or you may cancel the lease, depending on the extent of the damage. Your auto insurance policy and gap insurance—if you have it—should cover the losses. Thus, if you are able to fix the car, your insurance company should pay for any necessary repairs, minus your deductible. If you total a leased car, you still owe the leasing company the value of that vehicle.

When the vehicle is a total loss, your insurance coverage should reimburse you for its current worth. Unfortunately, you will most likely still owe the leasing company money.

Gap insurance, on the other hand, could be able to pay the difference. Even if the accident was not your fault, a good insurance company will go to bat for you and help you get a fair settlement. Never cancel or reduce your insurance on a leased car beyond the coverage required in your lease contract.

Your insurance company will notify your lease finance company the moment this happens. In case of an accident in a leased vehicle, call first, your insurance company second, and your lease company third. What happens next depends on the severity of the accident, the cost of repairs, and your insurance coverage.

In some cases, you can end up owing money to the lease company, just as you might if you had an upside down car loan. There are some very specific things that need to be done if a leased car is involved in an accident First, call and report the accident to the police, even if relatively minor — and even if you are at fault.

Call the company and explain that you were in a collision. Do not admit fault or apologize for the crash. Answer any questions the agency asks about your car accident, but say you wish to wait to discuss fault or liability until after an investigation of the crash. Ask about the repair process. Most leasing offices have specific rules for replacement parts, such as bans on aftermarket parts. Discuss vehicle repairs with the leasing company before calling your insurance company. Massachusetts is a no-fault car insurance state.

Under no-fault laws, you will seek damage recovery from your own insurance provider in most cases, regardless of fault. Contact your car insurance provider as soon as you can after your auto accident. Insurance companies require prompt accident reporting for valid damage claims. In a vehicle lease, the driver pays for the depreciation of the vehicle over the term of the lease, on top of lessor fees and interest rates. The lessor will divide your payments into installments over the course of your lease.

At the end of your contract, you will renew your lease or return the vehicle to the dealership. You may not own a leased vehicle, but you must still pay for insurance to legally drive it in the state of Nevada. Taking out a leased vehicle insurance policy will ensure you have the coverage you need in case of an accident. To make sure your policy will protect you from financial liability after a crash, meet at least the minimum insurance requirements in Nevada. Most vehicle leasing companies will require you to pay for insurance coverage beyond the minimum required amounts.

You may have to purchase guaranteed asset protection GAP coverage, for example. GAP coverage protects the leasing company by fulfilling your financial obligation to the company if you total the vehicle or someone steals it. You may also want to purchase additional coverage types to pay for your personal medical bills or losses in an at-fault accident, such as collision or comprehensive auto insurance. The more insurance you purchase, the stronger your liability protection after a crash.

If you get into an accident in a leased car, the initial steps to take afterward remain the same. Stay on the scene, check for injuries, call the police, and seek medical care. The insurance claim process , however, will look different. You will need to notify both your insurance company and the leasing company after a collision.

You have separate contracts with both companies that require you to report any accidents as soon as possible. Follow the steps each company gives you for how to proceed.