A car accident in a leased vehicle can be a stressful and confusing experience. Unlike owning a car outright, leasing comes with its own set of rules and responsibilities that can complicate the situation further.
Understanding how a crash impacts your lease agreement, insurance coverage, and potential financial liabilities is key to navigating the aftermath. While the specific outcomes depend on the terms of your lease and the extent of the damage, it’s important to be aware of how such incidents are typically handled.
When you’re leasing a car, dealing with an accident requires prompt action and careful attention to detail. While it might feel overwhelming, following the right steps can help you minimize stress and ensure that you meet your responsibilities under the lease agreement. Here’s what you need to do after a car accident in a leased vehicle:
The first thing you should do if you’re in a car accident in a leased vehicle is the same step you should take if you owned the vehicle. Assess the medical condition of everyone involved. Call 911 for medical emergencies. Even if you don’t have a serious injury or don’t think you are hurt at all, make sure that you get medical attention from your primary care doctor or an urgent care clinic within the next day or so. Getting checked out medically soon after an accident is important both for your health, and in the event you need to make an injury claim.
The purpose of calling the police is to get a third-party report and investigation of the scene. The police will talk to you and anyone else involved in the car accident. They will also facilitate the exchange of personal and insurance information. You’ll be given a crash report number so that you can get a copy of the report in a day or two from Texas’s Crash Records Information System (C.R.I.S.). Police officers are required to submit a written report of motor vehicle crashes they investigate to TxDOT within 10 days of the crash, per Texas Transportation Code §550.062.
Use your smartphone to document the scene in its entirety. Take pictures of the property damage to all cars involved, including yours and any other drivers involved in the collision. Also, take pictures of the condition of the road, the intersection, debris from the accident, and even something that helps document the weather.
If the accident occurred at an intersection, it is also generally a good idea to document where in the intersection the accident occurred. This can be very helpful when you report the accident and if you pursue a legal claim against the negligent driver.
Contact your insurance company as soon as possible to report the accident and begin the claims process. When filing the claim, provide all necessary details, including the lease agreement and documentation from the accident. Keep in mind that your insurance policy will likely play a major role in addressing repair costs or other liabilities.
It’s important to inform the leasing company about the accident promptly. They may have specific requirements for how the repairs need to be handled or what paperwork to submit. Failing to notify them could result in penalties under your lease agreement.
Most leasing agreements require that repairs be done through an authorized repair shop to ensure the car meets the agreed-upon standards. Check with your leasing company to confirm their repair requirements and adhere to them closely.
Finally, review the terms outlined in your lease agreement to understand your financial responsibilities after the accident. Depending on the extent of the damage, you may be responsible for covering out-of-pocket expenses or additional costs not covered by your insurance.
If your leased vehicle is deemed a total loss after an accident, it means the cost to repair the damage exceeds the vehicle’s market value or a significant percentage of it. In such cases, the leasing company will typically require you to settle the remaining balance of the lease.
However, most lease agreements include “gap insurance,” which covers the difference between the vehicle’s actual cash value (as determined by your insurance company) and the remaining balance owed on the lease. If gap insurance is included, it may prevent you from having to pay out of pocket for this difference.
You should notify both your insurance provider and the leasing company as soon as possible. The insurance company will process the claim and pay the leasing company for the actual cash value of the vehicle. If there is any remaining financial liability beyond what the insurance covers and it is not mitigated by gap insurance, you may still be responsible for paying it.
Texas follows an at-fault system when it comes to car accidents, which directly impacts who is responsible for covering repair costs after a car wreck involving a leased vehicle. Under this system, the driver found to be at fault for causing the accident is financially responsible for the resulting damages.
This includes both property damage, such as repairs to the vehicles involved, and any medical expenses incurred. Drivers in Texas are required to carry liability insurance to cover these costs, ensuring that the at-fault driver’s insurance policy is the primary source of compensation for the other party’s damages.
This stands in contrast to no-fault states, where each driver’s own insurance generally covers their repair costs and medical expenses, regardless of who caused the accident. No-fault systems often include personal injury protection (PIP) coverage to handle these claims. However, in Texas, determining fault is crucial because the responsible party’s insurance dictates the flow of payments.
A car accident in a leased vehicles is treated a bit differently since it’s a car that you don’t own. After you’ve followed the steps above, contact Thompson Law at 844-308-8180.
Our car accident lawyers can help you deal with the dealership or leasing agency, the insurance company, and the other involved drivers. We can also help you protect any potential legal claim that you may have against the other driver for negligence. You may have a legal claim for property damage, your injuries, and any time you lost from work.
Don’t try to negotiate with the other driver or the insurance company on your own after a car accident in a leased vehicle. Remember that the dealership or leasing agency has only one thing in mind: how they can protect their investment. You need Thompson Law is on your side.
Call 214-444-4444 in Dallas, 817-444-4444 in Fort Worth, 972-444-4444 in McKinney, 469-444-4444 in Arlington, or toll free at 844-308-8180 right away to schedule your free and confidential consultation after your car accident in a leased vehicle.
Thompson Law charges NO FEE unless we obtain a settlement for your case. We’ve put over $1.9 billion in cash settlements in our clients’ pockets. Contact us today for a free, no-obligation consultation to discuss your accident, get your questions answered, and understand your legal options.
State law limits the time you have to file a claim after an injury accident, so call today.
