Many individuals drive cars under lease. In fact, leases are often the more popular choice for obtaining a new car rather than buying the car outright. However, the question arises how this difference affects you, as the driver, if you are in a car accident. If you are driving a lease and are in a car accident, how does this affect your claim?
We have asked attorney, Alaina Sullivan, about what you should do. Here is what she had to say:
Review the Terms of Your Lease
The first thing you need to do is review the terms of your lease. These terms should govern what you do with respect to your lease obligations. You will need to get documentation on the damages to your car, and to do this, you will need to get the car inspected by a designated car service center. This service center is normally chosen by the leasing company. They will assess the damages to the vehicle and give an estimate of the cost to repair the car. This estimate will be used for purposes of filing a service claim.
Where Do I Report the Car Accident?
The lease agreement will need you to report the accident to your insurance provider, as well, just as you would any other car insurance policy. Your insurance company will set up an appointment with a claims adjuster to inspect the car damage. Often the insurance company and the leasing company will be connected, depending on your lease and where you got your car. If you are driving a company lease, you would contact that provider rather than a dealership. If you have any questions or are unsure, the dealership should be able to direct you to the correct party.
Repair or Replace?
Some leases have restrictions on repairs. Most require you to get the repairs at the location of where you obtained your car. Many dealerships will not allow you to repair a leased car with after-market parts but will require you to repair your leased car with original manufacturer parts. Your lease will detail those terms.
However, the bigger question is: do you repair your car or get a new leased vehicle. Depending on how damaged your car is, your lease terms may require you to call the car totaled. It depends on the kind of car insurance you have. Sometimes you will receive a payment to repair your car, or you may receive a payment to get a new lease in the same amount of money. If you have any questions as to how you should proceed, it is important you discuss these questions with your insurance agent.
Pursuing a Claim
If you live in a state where fault is an issue and you believe the other driver was at fault, you can pursue a claim against the other driver. Pursuing a claim is similar to as if you owned the car free and clear of a loan or lease. You would contact the other driver’s insurance company to notify them of the accident to begin the claim process. You would still need to get estimates for repairs and damages. The other driver’s insurance company will either accept the claim or dispute it just as would happen in any other accident process.
Collision Coverage
Most lease agreements require you to carry both collision and liability insurance policies as part of the lease agreement. Because of this, you can always get your car repaired under the collision coverage of your insurance policy. In fact, collision coverage is available for this exact type of situation for your protection.
Contact an Attorney Today
If you have been in a car accident while driving a leased vehicle and you are not sure how to proceed, it is always recommended you contact an attorney today to discuss your case if you do not currently have a lawyer or have any questions. A licensed personal injury attorney will be able to evaluate your case and determine if you have a claim against the other party’s insurance company. To receive the compensation for your medical bills, property damages, and pain and suffering, you should speak with a personal injury attorney in your area today.
