Totaling a Leased Car: What Happens and Who Pays?

When deciding what kind of car to get and whether to purchase or lease, many people end up leasing because it seems much more convenient. But when you get into an accident and you total the leased car, what happens then? Who pays for it and what do you do? Understanding your rights and what you’re entitled to in this situation is absolutely essential.

One of the first things you need to understand is that you need to report the accident to the leasing company as soon as possible. However, when you’re leasing a car, you are responsible for providing insurance for that car. What this means is that when you get into an accident, the liability is usually on you or whoever caused the accident. Our car accident legal team can help you determine liability after your accident.

Check Your Insurance Coverage

After getting into an accident in your lease vehicle, you need to check your insurance coverage. This is especially important when you total the car. If your insurance does not cover the total amount of the vehicle, then you could be out of luck and end up paying the difference between what it offers and what the car is worth out-of-pocket.

In some cases, your lease agreement may have required or permitted you to purchase gap insurance, in which case you would likely not have any cost out-of-pocket. Gap insurance covers the difference between what insurance will pay you and what the vehicle is worth. If you don’t have this, you will be left footing the bill for anything that isn’t covered.

The Importance of Determining Liability

After you’re in an accident while driving a leased vehicle, one of the most important things to do is determine who’s liable for the accident. If someone else caused the accident, you should be able to recover damages from them and their insurance company. This means you shouldn’t have as much to pay out-of-pocket. If their insurance coverage is not enough to cover the amount of the leased vehicle, you have the option of filing a personal injury lawsuit against them personally to try to recover the difference. 

Working With a Personal Injury Lawyer 

To determine liability, you will need to gather evidence like police reports, witness statements, medical records, and surveillance video if available. You need anything that will show the insurance company – or the court if it gets to that point – why the other person was responsible for the accident. This can be difficult, and the best way to do this is to reach out to a personal injury lawyer in Phoenix who can help you gather this evidence effectively.

Your lawyer can also negotiate with the insurance companies to try to get more money for the totaled vehicle. The first amount they offer is usually not the most they will give you, meaning you should never accept that first offer without speaking to a lawyer. Ultimately, the insurance company’s main goal is to pay as little money as possible. The simple fact that you have a lawyer will almost automatically get you a better settlement offer because they will take you more seriously.

If you were in a car accident in a leased vehicle, don’t hesitate to reach out to a lawyer for help. Contact us today to schedule a free consultation.