Crashing a leased car can be stressful. You might be worried about injuries, repair costs, and what your leasing company will say. Whether you’ve been in a minor fender bender or a serious crash, learning more about returning a leased car after an accident can help you avoid costly mistakes.
What Happens If You Crash a Leased Car?
After an accident in a leased car, several things will happen. Here are the most important things to know:
- Insurance will determine fault: This affects both your insurance claim and any injury claim you might have. In Nevada, you can only recover money for injuries if you were less than 50% at fault. Your compensation gets reduced by your percentage of fault.
- You must report the crash to your leasing company: Most lease agreements give you a specific timeframe to report accidents. Not telling them could break your lease terms.
- The car must be repaired at approved shops: Leasing companies usually require repairs at certain shops. Using an unapproved shop could mean paying for repairs twice.
- Your payments continue: Even if your car is in the shop, you still need to make your lease payments on time.
- Your insurance rates might change: If you’re found at fault, expect your rates to go up at renewal time.
What Happens If You Total a Leased Car?
When you total a leased car with full coverage, your insurance company will pay the leasing company the car’s actual cash value, minus your deductible. This ends your lease. But there’s often a gap between what insurance pays for the totaled leased car and what you owe on the lease. If this is the case, you’ll still be responsible for paying what’s left on the lease, even if you no longer have the car.
This is where gap insurance helps. It covers the difference between your car’s value and what you still owe. Many Las Vegas dealerships include gap coverage in their leases, but check your agreement to make sure you have it.
You can also challenge the insurance company’s valuation if you think it’s too low. If you can prove your car has a higher value than what they’re offering to pay, you may be able to get a higher payout – and therefore avoid having a gap at all.
What to Do After a Leased Car Accident
Getting into an accident with a leased car can be scary, but take a deep breath. The next few minutes are important, but you can handle this step by step. Whether you’re on the Strip, the 215, or a quiet neighborhood street, here’s exactly what you need to do:
- Ensure everyone’s safety: If your car runs, move it to the side if you can. Turn on your hazard lights. Check yourself for injuries, then check on your passengers and the other driver. If you’re near traffic, stay in your car unless it’s unsafe to do so.
- File a police report: Even if the accident seems minor, your lease agreement might require a police report for a damaged leased car. The police will document what happened while memories are fresh. Get the report number and ask how to get a copy.
- Document the scene: Photograph or video all damage to both cars, the accident scene including skid marks and debris, traffic signs, weather conditions, and license plates. Be sure to look up and spot any traffic cameras or security cameras that may have caught the accident.
- Exchange information: Share your name, contact info, insurance details, and driver’s license number, and get that information from the other driver. Don’t discuss fault, your schedule, lease terms, or personal details beyond what’s required. Even saying “I’m sorry” could be used against you later.
- Seek medical attention if needed: Don’t brush off pain or discomfort just because you’re worried about what happens if you wreck a leased car. Some injuries, like whiplash or a concussion, might not show up right away. Document all medical visits – you might need them for an injury claim later.
- Report it to your insurance company: Call your insurance company as soon as you’re safe. They’ll assign a claims adjuster, schedule an inspection, determine if the car is totaled or repairable, and work with your leasing company.
- Contact your leasing company: Call them within a day or two after the accident. Tell them when and where it happened, your insurance claim number, where you plan to get repairs, and the police report number. And don’t forget to check your gap insurance status in your lease agreement.
Tips for Returning a Leased Car After an Accident
Getting your leased car repaired is just the first step. When it’s time to return the car, you’ll need to be prepared for extra scrutiny.
Review Your Lease Agreement
Before you return the car, pull out your lease agreement and read it carefully. Look for:
- Wear and tear guidelines
- Required repair procedures
- Approved repair shops
- Return condition requirements
- Inspection procedures
- Fee schedules for damage
Most dealerships have similar requirements, but details can vary. Some might be stricter about acceptable damage on leased cars or have requirements like exact paint matching or OEM (original equipment manufacturer) parts for all repairs.
Be Aware of Potential Fees
Returning a leased car with damage is never a good idea – always get the car repaired before you return it. However, be aware that even with good repairs, you might face extra costs when returning your car:
- Disposition fee (to cover the cost of cleaning and selling your car)
- Excess wear and tear charges
- Repair quality penalties
- Early termination fees if you return it early due to the accident
- Charges for mismatched paint or visible repair work
The most expensive surprise can be repair do-overs. If the leasing company isn’t happy with your repairs, they might charge you to redo them, even if an insurance company already paid for them once. That’s why it’s so important to make sure you repair a damaged leased car at an approved shop.
Prepare for the Wear and Tear Assessment
Expect a detailed and thorough inspection when returning a leased car after an accident. Here’s how to prepare:
- Get a pre-inspection about a month before return
- Take recent photos and videos of the entire car
- Take photos of the repaired areas from multiple angles
- Keep all repair documentation
- Make copies of accident reports and insurance claims
If you disagree with their assessment, you have several options. You can request a second inspection or provide documentation proving your repairs were done properly. Many drivers also choose to get an independent assessment or challenge excessive charges, and having an attorney review the charges can help ensure you’re being treated fairly.
When to Seek Legal Advice After Crashing a Leased Car
If you’ve been hurt in an accident with your leased car, don’t try to handle everything alone. Even if the other driver says you were at fault, an experienced attorney can help prove what really happened.
Our Las Vegas car accident attorneys know exactly what happens if you get in an accident with a leased car. We can help you with returning a leased car after an accident, proving fault, dealing with insurance, and filing a personal injury claim to recover compensation.
Best of all, you don’t pay us unless we win your case. Contact us today for a free case review. Whether you’re a local or a tourist in a leased car, we’re here to protect your rights and help you get the compensation you deserve.
FAQs About Accidents in Leased Cars
What if I get into a leased car accident that’s not my fault?
If you’re not at fault, the other driver’s insurance should pay for repairs to your leased car and any injuries you suffered. Make sure to follow your lease agreement’s repair requirements, as using an unapproved shop could still leave you on the hook for fees when returning the leased car. You may want to talk to an attorney if the other driver’s insurance company tries to claim you were at fault.
Will I get money back if my lease car is totaled?
You might get money back if the insurance payout is more than what you owe on your lease. For example, if you’ve made a large down payment or your car’s value is higher than expected, you could receive the difference between the insurance payout and your lease payoff. However, this is rare.
Who gets the insurance check when a leased car is totaled?
The insurance company will send the check directly to your leasing company, as they are the legal owner of the car. Your leasing company will apply this payment to your lease balance, minus your deductible. If you have gap insurance, it will cover any remaining balance between what insurance paid and what you owe on the lease.
Do you have to report damage to a leased car?
Yes, you must report any damage to your leased car to both your insurance company and the leasing company. Most lease agreements require you to report damage within 24-48 hours, even if it’s just a minor scratch or dent. If you don’t report damage and the leasing company discovers it later, you could face penalties or extra charges.
What happens if someone hits your leased car?
When someone hits your leased car, you should notify your insurance company and leasing company, even if the other driver is clearly at fault. The other driver’s insurance should pay for repairs. However, if they don’t have insurance or if they hit your car and didn’t leave their information, for example in a parking lot, your insurance will need to cover it.
