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What to Do If You Are in a Utah Accident with a Leased Car?

Published on January 13, 2023 • Last updated January 3, 2023 by Russ Hymas
Topics: Car Accidents

blue truck with rear end crushed after car accident

Getting in an auto accident is scary. It can be a tremendous burden on you to handle the situation, depending on the severity of injury and damage. You must take specific steps to ensure a beneficial outcome that won’t leave you in pain and suffering.

The last thing you want is more stress handling a complicated accident situation. That’s where we come in, to help ease your confusion, worry, and anxiety. We are the Good Guys, Utah personal injury attorneys you can count on for legal help if you get in a leased car accident.

 

What is a leased vehicle?

When you lease a vehicle, you are not the outright owner of the automobile. You don’t own the title to the car. On a leased vehicle, you are committed to the contract payment terms. You must agree to pay the calculated amount upon returning the vehicle to the lessor. If there are damages, you may have to pay the difference.

 

What insurance is needed for a leased car?

Generally, auto leasing companies require a person to purchase a full coverage policy, including comprehensive and collision insurance. While it may cost more upfront, it covers damages in the event of an accident. That can mean no out-of-pocket expenses for you. 

 

How does an accident in a leased vehicle affect the lease terms?

It depends on who is at fault in a leased car accident. There could be a deficit between the amount of damages and the deductible. You could be held liable for damages even if you have your own insurance. That’s why you must understand the leasing contract terms beforehand.

  • Example: The car suffers $5,000 in damages, and the leasing terms state there is a deductible of $300. Someone has to pay the auto repair company $4,700 to fix the car. 

 

It also depends on the state laws where the accident occurs. If it happens in Utah, we can assist you in determining who is at fault and who is responsible for the costs involved.

 

Download our free book on Utah accident and injury claims.

 

Who is responsible for paying damages after an accident in a leased vehicle?

It can be complicated to understand who is financially accountable for paying the damages because it depends on a few factors: 

  • how much auto insurance coverage you already have
  • how much auto insurance you agreed to buy when leasing the car
  • how much auto insurance does the other driver have

 

This is a good reason why you should fully understand your leasing terms. Your leasing contract will outline what to do if you are in an accident. 

 

What happens when auto insurance doesn’t pay everything?

As mentioned previously, if auto insurance doesn’t cover the entire cost to repair and restore a car to its original condition, you, the lessee, are responsible for the difference. 

Sometimes a car leasing company requires GAP (guaranteed asset protection) insurance. If your full coverage auto insurance doesn’t pay everything, the GAP insurance will cover paying the difference. Ask the car leasing company if they offer GAP insurance when first leasing a vehicle.

 

What happens if you total a leased car?

If you are in a leased car accident and the cost to restore the car to new again is more than the car’s value, it is deemed a total loss. It won’t be worth repairing to the insurance company if the amount of damages exceeds 70-75% of the value of the car.

 

What to do first after a car accident in a leased vehicle?

  1. Call 911. It’s imperative to contact the police and first responders who will arrive on the scene to administer first aid and initiate an accident report.
  2. Call the car leasing company. 

You can contact your attorney, who specializes in car accidents and personal injury, instead of the leasing company. The attorneys can go through the terms of your leasing agreement and contact the auto leasing company on your behalf, giving you one less thing to worry about.

We are Utah car accident lawyers with extensive experience to help you. If you don’t have an attorney, you can call us directly, and we’ll help you immediately. Our number is 801-506-0800.

 

Do you need to hire an auto accident lawyer if you have a car crash in a leased car?

a team of auto accident lawyers in a law office

You are not required to hire an attorney. However, it is in your best interest to do so because it can be overwhelming to do it alone. 

The legal team of a car accident attorney helps you recover costs for damages and injuries incurred. They can organize a case for your claims process by gathering all the necessary information: speaking to witnesses, other involved parties, and the driver’s insurance company, as well as examining the details of the police report. They can also negotiate a settlement to award monetary compensation for any medical bills. 

Let experienced car accident attorneys handle the matter for you. Call Good Guys Injury Law – our entire staff specialize in Utah auto accidents –  Request A Free Consultation or Call.