When you crash a leased car, you have more than the usual worries. You must also follow the lease contract rules and work with an insurance company, the leasing company, and sometimes a personal injury attorney. But what happens if you’re in an accident with a leased vehicle? A Las Vegas car accident lawyer at THE702FIRM Injury Attorneys can explain what happens next.
Understanding the Basics of a Leased Vehicle
When you lease a vehicle, you sign a lease contract with a leasing company that owns the car. You agree to make monthly payments and follow certain rules. If you have a car accident in a leased car, you must keep these terms in mind. The leasing company’s property interest affects how repairs are handled, who pays for them, and what happens if you total a leased car.
Lease Agreement Terms
Your lease agreement details your financial obligations, including:
- Repair costs: You may be required to fix any damage, even if it happens in a minor collision.
- Insurance coverage: The leasing company often requires comprehensive and collision coverage beyond minimum coverage to protect its investment.
- Mileage limits: Exceeding the mileage limit before the end of your contract might bring extra fees, although this is a separate issue from a crash.
- Lease termination: If the leased car is totaled, the lease might end early, though you could still owe money depending on the remaining balance and insurance payout.
Knowing these terms helps you avoid penalties and manage any out-of-pocket expenses.
Gap Insurance: Why It Matters
When you lease a car, you pay monthly payments based on the vehicle’s predicted depreciation. If you total a leased car, your insurance provider will likely reimburse you only for the car’s pre-accident fair market value, also called actual cash value. That figure might be lower than the remaining balance on your lease. Gap insurance covers that gap. In other words, gap insurance covers the difference between what you owe and the insurer’s payout.
Reasons Gap Coverage Helps:
- It prevents you from owing thousands if the insurance claim process results in a payout lower than your lease balance.
- It provides peace of mind, especially if you have a new leased car that depreciates fast.
- Some lease agreements may require it as additional coverage.
You might get stuck paying the remaining balance out of pocket without gap coverage, even if your leased car is totaled through no fault.
Insurance Requirements for a Leased Vehicle in Nevada
Like all drivers in Nevada, you must carry auto insurance on a leased car. That includes liability coverage to protect third parties who are hurt or sustain property damage in a car accident. The minimum insurance requirements include:
- $25,000 in bodily injury liability per person
- $50,000 for bodily injury per accident
- $20,000 for property damage per accident
In addition, your leasing agreement may require you to carry other types of insurance optional for other Nevada drivers, such as collision or comprehensive coverage. Gap coverage is another important form of insurance that can make up the difference between your leased vehicle and the amount you still owe if it’s totaled in a crash.
It’s essential to meet with both the state requirements for insurance coverage and the terms outlined in your leasing agreement. Failure to comply could expose you to significant liability if you are found to be at fault for an accident in your leased vehicle.
What Happens if the Leased Car Is Totaled?
Accidents can lead to severe damage that makes a car unsafe or uneconomical to fix. This is often called a total loss. When a leased car is totaled, your insurance provider usually pays out the car’s actual cash value. However, there can be a gap between that payout and your remaining balance on the lease. That is where gap insurance is essential. It can help pay what is left, so you are not stuck with a large debt for a car you cannot drive.
Steps After a Total Loss
- Notify the Leasing Company: They will need to know if you will continue your lease or pursue other options.
- Review Your Gap Coverage: Check how much gap insurance covers and if it pays the difference between the insurance payout and the balance on the lease.
- Arrange Lease Termination if Needed: In many cases, total losses lead to lease termination. Make sure you know the fees and terms involved.
- Discuss a Replacement: If you want another leased vehicle, talk with the leasing company about your options.
A total loss can seem stressful, but gap coverage helps lessen the financial blow. Follow your leasing company’s directions and stay in touch with your insurance provider to complete the lease termination process in a smooth manner.
Determining Fault in a Leased Car Accident
Nevada is an at-fault state. That means the driver who caused the accident is responsible for the damages. Fault determination is made through:
- Police Report: Officers at the scene file a report that includes initial impressions.
- Witness Statements: People who saw the crash can give accounts of what happened.
- Insurance Investigation: Each insurance company reviews the accident details, often requesting photos, estimates for repairs, and testimonies.
If you are found liable, your insurance coverage must pay for property damage and bodily injury. If another driver is responsible, that party’s insurance should handle your losses. If a fault is not clear, both insurance providers may dispute the claim until they reach an agreement.
Why Consider Injury Attorneys or a Legal Team
Car accident lawyers in Las Vegas or other Nevada regions can assist with the settlement process and negotiations. They often have a free consultation policy, which allows you to share accident details without pressure. Many injury attorneys work on a contingency fee basis, so they only get paid if you win or settle. That reduces upfront costs.
Having a lawyer can be helpful if you want to seek compensation for medical bills, lost wages, or property damage. They may also deal with the leasing company and insurance provider on your behalf to finalize your case. This can be beneficial if you are not sure how to move forward or face disputes about coverage or repair costs.
Trusted Legal Guidance from THE702FIRM Injury Attorneys
Handling a leased car accident claim in Nevada comes with some of its own complications. Rather than figure out the logistics yourself, get a Las Vegas car accident lawyer on your side. When questions arise about your rights and responsibilities, THE702FIRM Injury Attorneys offer the insight and advocacy needed to protect your interests. Call us today to schedule a consultation and gain confidence knowing you have dedicated professionals by your side every step of the way.
