Last Updated on January 12, 2023 by Faiza Murtaza
A lease car is taken on lease from a dealership; you do not own the vehicle and are only paying for using the leased car. The lease is monthly, and the car must be returned to the lease at the end of the lease term.
The leaser can charge you for any damage incurred to the car; however, if insurance is involved, the insurance company will pay the damage. If you were in an accident with a leased car and need legal help, you can contact the attorneys at Rosenberg & Gluck, LLP, to mitigate all losses. Have a look at the following information to better understand accidents involving leased cars.
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Leased Cars and Accidents
If you don’t have an insurance company and suffer an accident with a leased car, you will be in financial trouble. First, if you are involved in a car accident involving a leased car, you need to ensure that no one is injured. The next will be to call the police if they have not already reached the accident site. The police will be able to document the accident details, interview the eyewitnesses and produce a detailed police report.
What Should You Do?
While the police and the other departments are doing their work, you can take pictures if the police allow you. This will ensure that you have your evidence to present if things go north with the insurance or the leasing company.
Read More: Capital lease accounting – understanding the components of the concept
Car Inspection
The insurance company and the lease company will likely send the car damage inspection. However, you can also bring your insurance company, mechanic, or other experts to estimate the damages. The leasing contract might state that the car needs to be fixed with the original parts, which will cost more than usual. Therefore, having experts at your side will help you decide on the best possible action.
Know Your Contract
Pursue a case against the other driver if you think they were at fault. If the car is a wreck and the repairing company shows no hope of repairing it, the insurance company is likely to pay complete damages. However, you might have to pay the lease company separately under the lease contract. Therefore, before signing the contract, read all the policy guidelines, and if an accident does occur, act accordingly to avoid further damages.
Notify the Company
When returning a leased car, it is essential to know that even the slightest damage to the car is charged for. Therefore, it is wise to fix any damages beforehand and bring those damages into the knowledge of the leasing company.
Accidents can cost you very much if you don’t have car insurance on the leased car. Before you lease out a car, ensure that you go through each clause of the leasing contract and read the policy and other guidelines thoroughly. If anything is ambiguous, make sure to clarify it with the leasing company on the spot to avoid any confusion later.
