Getting into a car accident is stressful, but it can be even more stressful when you’re driving a leased vehicle. Who’s responsible for the damage? What are your obligations? And how will it affect your lease?
Take a deep breath¾it’s more common than you think. And we’ve got your roadmap to handling this bump in the road.
Who is Responsible After a Leased Car Accident?
Responsibility in a leased vehicle accident largely mirrors that of an owned car, with one key difference: you don’t own the car. The leasing company (lessor) does, and you are responsible for returning it in acceptable condition.
If you’re at fault, your insurance policy typically covers the repairs (up to your coverage limits). If another driver is at fault, their liability insurance should cover damages.
Regardless of fault, you’ll be expected to report the damage to your insurer, notify the leasing company, and repair the car at an approved shop.
Most lease agreements require comprehensive and collision coverage.
Steps to Take After an Accident in a Leased Car
Here’s your post-accident checklist:
- Prioritize Safety (Because you’re more important than the car.)
- Move to a safe area
- Check for injuries
- Call 911 if necessary
- Document the Scene
- Take photos of all vehicles
- Collect witness contact information
- Record road conditions
- Make Three Important Calls
- Police (request an official report)
- Your insurance company (within 24 hours)
- The leasing company (to report the accident)
Consequences of an Accident on Your Lease Agreement
Even with full repairs, an accident can have lease impacts:
- Diminished Value: Cars lose resale value after accidents. However, you won’t typically be held responsible unless your lease says otherwise.
- Wear and Tear Penalties: Unrepaired damage could result in extra charges at lease end.
- Lease-End Inspections: Poor repairs or undisclosed damage can cost you during the final inspection.
Steps to Protect Yourself as a Lessee
To protect your wallet and peace of mind:
- Carry adequate insuranceYour policy should include liability, collision, comprehensive, and ideally, Guaranteed Asset Protection (GAP) insurance.
- GAP covers the difference if your insurance payout is less than what you owe.
- Understand your lease terms: Know your responsibilities for maintenance, accident reporting, and approved repair shops.
- Document everything: Keep detailed records of any damage, repairs, and all communications with your insurer and leasing company. Regularly take photos of the vehicle’s condition.
- Consider excess wear protection plans: Some leasing companies offer optional protection against fees for minor damage and wear.
- Stay informed: Traffic laws, insurance regulations, and lease terms can vary by state.
Tip: Discuss accident procedures with your leasing agent and insurance provider before signing your lease, so you’ll be ready just in case.
An accident in a leased vehicle doesn’t have to be a legal or financial nightmare. By following the right steps, reporting promptly, repairing properly, and documenting thoroughly, you can minimize the impact.
Likewise, if you’ve been in an accident and need help protecting your rights, contact the law office of Timberlake, League & Brooks. We’re here to guide you every step of the way.
