December 27, 2022 Car Accidents
A new car is not an affordable purchase for everyone, which is why Nevada residents often lease their vehicles. There are, however, many important factors to consider when driving a leased car—especially if you were involved in a car accident.
If you crash a leased car, you must not only contact your insurance company but also your leasing company or car dealership. Depending on the current value of your vehicle and the extent of the damage, you may also need to cover some of the cost out of pocket.
Most leasing agreements require you to carry car insurance to lease a vehicle. Typically, this insurance includes comprehensive coverage, which pays for damage to the car caused by non-collision events. You would also need to carry collision coverage, which pays for damage to the car caused by an accident, regardless of who was at fault.
After an accident, your insurance company will usually pay for any damage to the leased vehicle. The company will send an adjuster to examine your vehicle, estimate the cost of repairs, and issue compensation. However, you may only receive compensation up to the limits of your policy.
You will also need to meet your deductible before the insurance company will cover the cost of repairs. If you were not at fault for the accident, you may be reimbursed for the cost of your deductible.
In some cases, damage to a leased vehicle is so severe that the estimated cost of repairs exceeds the value of the vehicle. If the damage exceeds 65% of the car’s total value, the insurance company will consider the vehicle a total loss.
In this situation, your comprehensive collision policy will provide compensation up to the depreciated value of your vehicle. You would still need to make the remaining payments on your lease unless you have a specific policy called gap insurance. This coverage will pay for the difference between your insurance settlement and the outstanding balance on your lease contract.
If you are involved in a collision with a leased car, there are several important steps that you will need to take. Most importantly, you will need to seek medical care, notify the insurer and leasing company, and speak to a car accident attorney as soon as you can.
Finally, you should contact a car accident attorney as soon as possible. If another driver was at fault for the collision, you may be able to recover financial compensation to help pay for any vehicle damage and other losses. Schedule a free consultation as soon as you can to discuss your next steps.