Leasing a vehicle has become extremely popular as there are many advantages and benefits.
Getting into a car accident can be stressful. Driving a leased vehicle can cause additional stress and confusion when involved in a collision.
Getting into an accident in a leased vehicle will not affect a car lease. After the accident, you will still owe the leasing company for the value of the car after the collision. You can use your insurance to cover the cost of repairs to the vehicle.
Do I need insurance for a leased vehicle?
Yes, you should always have car insurance. Most auto insurance companies require drivers who are leasing a vehicle to have comprehensive insurance and collision insurance.
Comprehensive insurance can assist with covering damages to a leased vehicle that were not caused by another vehicle or object. Comprehensive insurance covers damages that occurred due to theft, natural causes, or fires.
Collision insurance differs from comprehensive insurance in that it covers damages caused by another vehicle or object.
When going through the process of leasing a vehicle, ask your insurer about the different types of insurance and additional coverage.
It is illegal and irresponsible to not have car insurance. If you are caught driving without car insurance in Maryland, five points will be added to your license which will lead to higher premiums.
Drivers in Maryland who are uninsured will experience a $150 fine for the first thirty days, and a $7 fee each day following.
You may also lose your license, registration privileges, and lose the ability to register vehicles in the future. You may also not be able to renew a suspended registration until all of the violations are cleared.
Do you have to report an accident on a leased car?
Yes, you should always report an accident and file a claim with your insurance company. If you can repair the damages from the collision, your insurance company will cover the repairs minus the deductible.
If your leased car is totaled in the car crash, you will owe the leasing company for the value of the vehicle. Some drivers may have gap insurance, which will help cover the difference. You may also be able to roll the remaining balance onto your next car lease.
Any damages made to a leased vehicle must be reported. Leasing companies tend to have specific requirements for repairs and need to update the history of the vehicle.
What happens if a leased car is totaled?
Your lease is going to end at some point. You will still owe your leasing company for the remaining balance of the loan, but there are a few ways to help relieve yourself from expenses.
If your vehicle is a total loss, that means that the damages to repair the car exceed the vehicle’s value.
The first step would be to check the amount that your car insurance pays you for the value of the vehicle.
If your insurance company pays you for some of the value of the vehicle, you could put that money towards the outstanding balance. it is important to check if your car insurance company will cover some or all of your losses.
You will also want to see if you have gap insurance. Gap insurance can help pay the difference if you are involved in a collision with a leased vehicle and your insurance will not fully cover the costs. Many people who lease vehicles have gap insurance; they just don’t know it.
You may also choose to bring a lawsuit against the driver who caused the collision. If you are not at fault, the driver who is to blame is responsible for all of the damages and expenses that occurred in the collision. Things may become complicated if the at-fault driver does not have car insurance.
If your car is totaled, you will need to either begin a new lease or purchase a new or used car.
What is Gap Insurance and Do I need it?
Gap insurance is optional. Typically, gap insurance is involved in the sale pitch when trying to purchase or lease a vehicle. Gap insurance can help pay off an auto loan if the vehicle is totaled or stolen and you owe more than the car’s value. Gap insurance is used to help drivers pay for the gap between the value of the car and what is owed.
Gap insurance is great for drivers who have a car loan that is worth more than the value of the vehicle. Drivers who have a greater loan than the value of the vehicle should calculate the loan balance and compare it to the vehicle’s current value.
How much does gap insurance cost?
Gap insurance costs as little as $3 a month and about $36 per year. the cost of gap insurance depends on the vehicle’s value. To find the best insurance company for you, compare three insurance companies and pick the one that is the best fit.
What happens if the vehicle is not totaled?
If your vehicle suffered minor damages from the collision, you will need to bring the vehicle to the service facility to get an estimate. Your insurance company should make a recommendation for a facility that they typically work with.
If your insurance company and leasing company direct you to different service facilities, ask your Baltimore Car Accident attorney for assistance. it is important to make sure any contracts with your insurance and leasing company are not breached.
What should you do if you lease a vehicle and are not at fault?
The process is the same for those who outright own a vehicle or are free of a loan or lease. If you are not at fault in a collision and your leased vehicle is damaged, you may sue the driver responsible for the crash.
The at-fault driver is fully responsible for expenses and damages caused by the crash. You may want to make a claim for compensation to pay for the losses. You should always call your insurance company and report the crash.
Make sure you include as many details as you can about the collision. Your insurance company will use this information to help the driver build a case and determine fault.