If you get into a fender bender, don’t beat yourself up too much. You are among millions who get into a car crash every year, of which up to 50 million suffer injuries of some sort.
Injuries aside, the worst part about a car crash is the financial fallout and needing to fix or entirely replace your ride. All of that changes when you have a leased vehicle. What should you be aware of in the event of a leased car accident?
Your rights aren’t any different from driving your own vehicle, but here are a few things you need to know.
What’s the Difference Between a Leased and Rented Vehicle?
The difference is simple. A rental vehicle has a shorter contract, usually a few days or weeks, or a couple of months at most. This is a vehicle you need in a jiffy when on vacation or temporarily out of a car.
A leased vehicle is a long-term rental option. It allows you to rent a vehicle for up to four years. Like an owned vehicle, you’d be shooting yourself in the foot not to purchase car insurance.
What to Do in a Leased Car Accident
So, you find yourself in the unfortunate situation of having crashed a leased car. The vehicle is damaged and you may be injured. What happens next?
Care for Yourself and Others
Above all else, make sure you are okay. Your first priority should always be your own well-being and physical health. Check yourself for injuries and make sure you find a safe place away from the crash.
Check the other involved party to ensure they aren’t injured or in danger. Help them if necessary. Do not attempt to treat injured people unless you know what you’re doing.
Document the Crash
You must document everything. Take pictures of the vehicles and write down anything you can recall. Speak to the other involved party for their personal/insurance information and anything else that’s relevant.
Deal with the Authorities
Make sure to call the police and any necessary authorities, such as the ambulance. Tell the police your version of events. Contact a car accident lawyer if you aren’t sure what you should and shouldn’t say.
This will be important, especially if you are not at fault for the accident. Since the blame may fall on you, it’s important to avoid financial consequences if you aren’t responsible.
If a towing company is necessary, get their information. You need to know where they are taking the vehicle if it is too damaged to drive.
Contact Your Lawyer
It’s a good idea in general to contact a lawyer after a car accident, but more so when the vehicle is leased. There is going to be a complicated interaction between the leasing company, the insurance company, and you. Determining who is responsible, and who is at fault, will likely be a tricky legal affair.
The degree of damage will be an important factor here. In the case of a simple fender bender, there’s less reason to worry. But if you totaled the vehicle, whether or not it was your fault, there is going to be hell to pay.
A lawyer will guide you through these challenging waters to ensure you aren’t liable when you shouldn’t be. In some rare cases, you may need to take legal action against the leasing company or the insurance company.
Contact the Leasing Company
Your next call should be to the leasing company. After all, this is their vehicle, so they are the first party liable for damages. Submit a leased car accident claim to them giving your accounting of events and any necessary documentation.
Make sure to include leased car accident injuries. Make clear that you were not at fault if that is the case.
It may take time, several days at least, for them to process your claim. In the meantime, follow the next steps and check the contract that you signed. This should indicate what your leased car accident rights are, i.e. who is liable for damages.
There’s a good chance, especially for a budget company, that you are fully responsible for the damages. The company likely won’t cover any of your medical expenses, either.
Contact Car Insurance
Your next call should be to the car insurance company. Given that a leased vehicle is in your charge for several years, car insurance is a must. This functions very similarly to car insurance for a vehicle you own.
If you have called the insurance company before, then you know how this works. Submit a claim and wait for an official decision.
Like the leasing company, the insurance company will ask you a lot of questions. Keep in mind, the insurance company will do anything to avoid paying out. These questions serve to secure your guilt and find ways that you may be liable, rather than them.
Wait
Now comes the waiting game. While you wait, the leasing company and the insurance company will get in contact. After all, the leasing company has its own insurance policy separate from yours.
There may be more than one insurance company, yours being separate from that of the leasing company. This could create a complex interaction between the two insurance companies and the leasing company. Among these three companies, they will need to determine who is liable, and who is going to pay whom.
In the meantime, they may get in contact with you on and off asking for further information.
Pay Gap Insurance
You may need to get gap insurance. This is a special insurance type in the event that a leased car is too damaged to drive. It will cover your remaining balance for the leased vehicle aside from the accident coverage.
Be Prepared With Your Leased Vehicle
A leased car accident really isn’t that much different from an accident with your own vehicle. You take the same measures and precautions as usual, albeit this time you submit claims to the leasing company and insurance. You’ll need a lawyer if the insurance companies and leasing companies put the blame on you.
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