What happens if i wrecked my leased car

Instead, you return the vehicle to the leasing company. You may have an option to purchase the vehicle at the end of the lease agreement. However, unless you make special arrangements to buy the vehicle, a vehicle lease is an agreement with a leasing company to use a car for a set period of time.

Your contracts with both companies require you to inform each company about the crash. Your contracts likely require you to make contact with each company very quickly after the accident. In most cases, you have only a few days to tell them that the crash occurred. The insurance company might recommend a body shop, or you can find one on your own. The insurance company looks at the damage to your vehicle to make an estimate of the cost to repair the damage.

That estimate is typically what the insurance company pays you up to the limits of your policy. You likely also have a deductible to meet before the insurance company pays for your losses. The body shop looks at the damages to your vehicle. In that case, your insurance pays you for the cost of repairs. If your car gets totaled, your insurance typically pays you for the current, actual value of the vehicle.

However, you still owe the leasing company for the remaining payments under the lease. The leasing company expects you to pay the entire amount. If you have GAP insurance , you can simply ignore the above. If your car is totaled, you will still be required to make normal lease payments until the claim is settled. Also, just like for a loan, if the market value of the vehicle is less than the amount owed on the lease, you will still need to pay the difference unless you have gap insurance.

Feel free to negotiate with the insurance company to find a figure that works for both parties. Simply provide the information the insurance company requests without speculating as to the cause of the accident. The more facts you can gather about your crash, the better.

Contact the company where you leased your vehicle. Most vehicle leasing agreements stipulate that you must notify the agency or dealership within 24 to 48 hours after an accident. Call the company and explain that you were in a collision. Do not admit fault or apologize for the crash. Answer any questions the agency asks about your car accident, but say you wish to wait to discuss fault or liability until after an investigation of the crash.

Ask about the repair process. Most leasing offices have specific rules for replacement parts, such as bans on aftermarket parts. Discuss vehicle repairs with the leasing company before calling your insurance company. Massachusetts is a no-fault car insurance state. Under no-fault laws, you will seek damage recovery from your own insurance provider in most cases, regardless of fault.

Contact your car insurance provider as soon as you can after your auto accident.