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What Happens If You Total A Leased Car?

Leasing a car is a popular option for those who prefer having a new vehicle without the long-term commitment of ownership. However, if you find yourself in a car accident with a leased vehicle, the process and considerations differ compared to owning a car outright or having a car loan. In this article, we will guide you through the various factors to consider in such situations.

Ensure You Have Adequate Insurance

Even though you don’t own the leased vehicle, having insurance coverage is essential. It’s a legal requirement to carry Nevada’s minimum insurance, just like any other driver on the road. Currently, Nevada mandates the following minimum coverage:

  • $25,000 for bodily injury liability
  • $50,000 for bodily injury liability coverage per accident (when 2 or more people are injured)
  • $20,000 to cover property damage

While these coverage amounts satisfy the minimum legal requirements, it’s advisable to consider additional insurance coverage, especially if you own a home or have other assets. Keep in mind that your lease agreement might specify the minimum insurance coverage you must maintain. Failure to meet these requirements could lead to contract cancellation or even legal action by the leasing company.

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Contact the Appropriate Parties After an Accident

Immediately after an accident, it is crucial to notify your insurance company. Make sure to report the accident within 24 hours and provide basic information such as the accident location and the identities of all parties involved.

Additionally, you need to inform the leasing company since they are the legal owners of the vehicle. Your insurance company is not responsible for contacting the lessor on your behalf. You should have a specific number to call to report the accident and provide any necessary information required by the leasing company.

Take the Leased Car to a Body Shop

Your insurance company may recommend a preferred body shop, but you might also have the option to choose your own. Additionally, the leasing company might want to assess the vehicle after the accident. Once the car is taken to a body shop, you will receive an estimate for the repair costs.

Whether your insurance covers the repair costs depends on your policy. If you have collision or comprehensive coverage and you were not at fault for the accident, your insurance might cover the repairs. However, if you were responsible for the crash, you may have to pay for the repairs out of pocket.

What Happens If You Total A Leased Car?

If the damage to the vehicle is significant, the insurance company might deem it a total loss if the cost of repairs exceeds 65% of the car’s value. For example, if the repairs amount to $30,000 but the car’s value is only $36,000, the vehicle might be declared a total loss.

However, it’s important to note that even if your leased car is totaled, your contractual obligation to make lease payments does not disappear. This means that after a severe accident, you may end up owing money to the leasing company. In these situations, individuals with a leased car that is totaled often find themselves in a worse financial position compared to those who own their cars outright.

Check If You Have Gap Coverage

Gap coverage can be beneficial if your leased vehicle is totaled. It covers the difference between the value of the vehicle and the amount you must pay under the terms of your lease. For example, if the totaled vehicle is valued at $28,000 but you still owe $32,000 under the lease, you would need to come up with $4,000 out of your own pocket. Gap coverage can help bridge this gap, which is why it is advisable for anyone leasing a vehicle to purchase it.

Seeking Compensation When Not at Fault

If another driver is responsible for the accident, you have the right to seek compensation from them under Nevada law. For instance, if you were waiting at an intersection and another driver collided with you, you can file a lawsuit to recover damages for your injuries, medical expenses, lost wages, and pain and suffering. In such cases, you may not need to use your gap coverage as you can sue for 100% of the damage to the vehicle.

How A Leased Car Accident Attorney Can Help

After a collision, it is crucial to analyze the best approach to maximize your financial compensation while considering the terms of your lease. Not all personal injury attorneys have experience with leased vehicles, which can result in overlooking important considerations. At Naqvi Injury Law, we understand the intersection of leases and liability in car accidents. If you have been in an accident with a leased vehicle, we offer a free initial consultation to discuss your options and help you make informed decisions.

Contact Naqvi Injury Law today for expert guidance and representation in handling accidents involving leased vehicles.

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Chris Hughes
Chris Hughes
2023-07-25
Naqvi injury law is amazing! The people are wonderful and the offices are beautiful. I recommend them to everyone. Thank you so much Tarah and Jason for the amazing work and settlement!!!
Jason Stewart
Jason Stewart
2023-07-22
Great practice - settled my accident professionally and efficiently. Jason and Sabina are amazing - they both communicated and kept me updated on the status of my case throughout the duration. I really appreciate their time and efforts. Thank you again!
Donald Weiss
Donald Weiss
2023-07-14
Great service by Alex best in town ...Megan was also great ..best service I've had and I grow up with Jeff Fawell in dupage County ilinios who is a fried but also a constitution lawyer ...they are just as good
Frank Lin
Frank Lin
2023-07-06
I am a client of Naqvi Injury Law since March, 2016. In the last few of years, I have been represented by Attorney Coats and Attorney Albright, and Mrs. Rachel Bounds for three automobile accidents. They were all incredible and very organized. They provided the best legal advice and customer services to me. I felt so welcomed every time I sit feet in their office. Both attorneys and Rachel were helpful in every step in the way. They helped me gone through the treatment and recovery process. I can’t thank them enough for their wonderful services that they have provided to me. In addition, I want to use this opportunity to thank Naqvi attorney, Meghan and her Legal Assistant, Maggie. They made sure no stones were left unturned during the legal proceeding to get the case resolved. Again, thank you for all the legal services from the best injury law firm in Southern Nevada, that is the Naqvi Injury Law.
Andre Williams
Andre Williams
2023-07-03
Naqvi injury attorneys are the best I ever came across..first time I stepped in their office I was treated with the upmost respect and care from a team of attorneys case managers, and the front Desk..everyone is so amazing..Shaunda the Case Manager is awesome. She was so transparent Throughout my entire case, she went above and beyond and treated me like family…. i’m so grateful and thankful for an amazing team at Naqvi injury law… Melissa and Shawna and the rest of the staff. Keep up the good work I’m going to recommend you guys to the fullest. thank you so much.
Youth Led Hayes
Youth Led Hayes
2023-07-02
Absolutely AMAZING team Naqvi has with him, including the receptionist; they are patient, polite, considerate, and genuinely concerned about you as a client. They respond to you if not the same day, definitely within a 24 hour period. Paul and Arlene stayed in contact with throughout the process. If I’m ever needing a lawyer again Naqvi law office is it!
Business Review Journal
Business Review Journal
2023-07-01
Best law firm in Nevada!… Farhan, Paul Albright and their entire team worked endlessly on my case and walked me through every phase of the process. I couldn’t have been any happier with the resolution. They truly deserve every award they’ve received over the years. Thank you for everything Team Naqvi…
J Cole
J Cole
2023-06-27
What else could I say other than the best decision I made for my Health was switching attorneys to Paul at NAQVI. My case was complex and many things were NOT in my favor. Paul and Rachel delivered me an unbelievably generous settlement and all of my medical expenses FULLY covered. If you feel unsure about your legal representation, or have a case that seems hopeless, take a consultation with Paul at Naqvi.
Barbara Balatbat
Barbara Balatbat
2023-06-26
I was involved in an accident with someone driving a government vehicle. I chose to call Naqvi Injury law. The process was long, since my attorney Mariya Malkova was dealing with a government adjuster. Karla and Mariya always kept me updated during this whole process. This team was truly awesome and I will not hesitate to call Naqvi Law Injury again or recommend them to family & friends. Thank you to Mariya & Karla and anyone who helped on my case for all your help & support.
IcyDragon
IcyDragon
2023-06-23
Very good experience, I was in a car accident and got excellent service. Absolutely recommend to everyone. If you want the best team use Naqvi and his team!!