What Happens if You Crash a Leased Car?

Leasing remains one of the most popular financing options for new cars. According to data from Statista, more than one quarter of newly-bought vehicles in the United States are leased. There are some advantages to leasing a new vehicle—particularly for those who want lower upfront costs and/or to change their car more frequently. But what happens if you crash a leased car?

If you are involved in a crash, the fact that you leased your car can create some challenges. You may have a lot of questions regarding your rights and responsibilities. In this article, our Fort Lauderdale car accident lawyer explains the most important things to know about what happens if you are involved in a collision in a leased vehicle.

What is a Leased Vehicle?

As defined by Credit Karma, leasing is an auto financing option through which a person effectively “rents” a vehicle from a dealership for a predetermined period of time. It is not altogether dissimilar to leasing an apartment. A person who leases a car will have to make payments and when the lease expires they will be required to return the vehicle to the dealership.

Understanding the Options When a Automobile Lease Ends 

Every vehicle lease is different, meaning your options will depend, in part, on the specific terms of your agreement. That being said, a person typically has three options when their vehicle lease expires:

• Return the Vehicle: When the lease ends, you can generally return your vehicle and end your relationship with the dealership. The lease agreement will typically require a person to pay certain fees when doing so.

• Trade for Another Car: A lease agreement also typically allows a person to return the vehicle but keep their relationship with the dealership. Most often, this means that they will trade-in the leased vehicle for another car.

• Buy the Car Outright: Finally, if you are satisfied with the vehicle, you can often purchase the leased car outright from the dealership. The price and terms will depend on a number of different factors.

Am I Required to Report an Accident With a Leased Vehicle?

You might wonder what happens if you crash a leased car. Reporting requirements depend on the nature and severity of the accident. In Florida, all motor vehicle collisions that result in physical injuries or in significant property damage ($1,000 or more) must be reported to the authorities. The state regulations are the same for leased vehicles as they are for other vehicles. Beyond Florida’s reporting requirements, you may also be required to notify the company (dealership) from which you leased the vehicle. Indeed, most leases have some form of accident notification requirement. Though, you should always refer to the specific terms of your lease.  

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What Happens if You Crash a Leased Car?

What happens if you crash a leased car depends on a number of different factors. You may be able to keep and repair the vehicle, trade in the vehicle, or get out of the lease entirely. There is no question that a car crash devalues a vehicle. In some cases, insurance—either your own or another driver’s—will cover most of the damages.  

What Will Happen if I Completely Total a Leased Vehicle?

Under Florida law (Florida Statutes § 626.9743), a vehicle is a total loss if the cost to repair it is greater than 80% of its fair market value. For example, imagine that your leased vehicle is worth $25,000. You are involved in a crash at an intersection in Fort Lauderdale. The estimated cost of repairs is $24,000. The amount is so high that the vehicle would be deemed a total loss. What happens next depends on several factors, including the terms of your lease, who caused the accident, and your insurance coverage situation. Most often, a person who leased a vehicle will still owe money to the dealership even if the car totaled. However, the cost may be covered through insurance coverage or a car accident claim.  

Will a Car Wreck Affect My Lease?

It depends. That being said, most often a car crash will not directly alter the terms of the lease agreement. Put another way, the person who leased a car is still responsible for making their payments to the dealership. How vehicle repairs will be paid for depends on insurance coverage and the liability for the accident.

To learn more, schedule a free consultation with us today.

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Know the Steps to Take After a Crash in a Lease Car

Were you involved in a collision while driving a leased vehicle in Southeast Florida? If so, it is crucial that you take action to protect yourself and your interests. Here are five key steps to take after a crash in a leased car:

• Stop your vehicle, exchange information, and remain at the scene;
• Call the police and notify them of the collision;
• Seek professional medical attention for any injuries (emergencies come first);
• Document the crash—taking pictures and getting witness details; and
• Consult with a Fort Lauderdale personal injury lawyer if you were hurt in the crash.

Who Can be Held Liable for Damage to a Leased Vehicle? 

Liability for a leased vehicle accident depends on several factors. To start, it is important to emphasize that Florida is a no-fault auto accident jurisdiction. Under state law (Florida Statutes § 627.7407), all motorists are required to carry personal injury protection (PIP) coverage of at least $10,000. That no-fault policy covers a person’s initial medical bills and lost wages. For personal injury claims in minor and moderate crashes, fault is not an issue in Florida. However, Florida’s no fault insurance law does not apply to property damage. In other words, the party deemed responsible for causing a crash is liable for the property damage—potentially including the repairs or replacement of a leased vehicle. A number of different parties can be held liable for a car crash in Florida. Negligent parties could include drivers, truck companies, and vehicle manufacturers.

Proving Another Driver is At-Fault for a Leased Vehicle Accident

Proving you are not at fault for a car accident is important in a leased vehicle collision case. You do not want to be on the hook for the cost of repairing or replacing a vehicle or otherwise fulfilling the terms of the lease. In Florida, liability for a car accident is based on negligence. Any party that contributed to the crash due to their failure to take due care can be held accountable. All serious car crashes in Broward County should be thoroughly investigated by an experienced Fort Lauderdale auto accident attorney. In the immediate aftermath of a crash, a lawyer will gather and prepare the evidence that you need to prove that another driver or any other defendant is at fault for your leased vehicle crash.

How Much Compensation Can I Get After a Car Accident in a Leased Vehicle? 

Following a crash in a leased vehicle, most people have a common question for their attorney: How much compensation can I expect to recover in a claim? The value of a car accident claim is always a case-by-case issue in Florida. In general, you have the right to seek compensation for the complete value of your damages. Your initial medical bills and lost wages will likely be covered by your own no-fault PIP policy. If you suffered serious injuries in a crash, you may have the right to pursue a fault-based personal injury against the at-fault party. As far as property damage is concerned, you can hold the at-fault liable for the full extent of your damages, including repairs to or replacement of the leased vehicle. If you are fully or partially at fault for the accident, you will generally need to pursue a property damage claim through your own insurance company—either your comprehensive collision insurance or your gap coverage.

Leased Vehicle Crash: Will I Have to Turn Over My Compensation to the Leasing Company?

What you will have to pay to the lease company after a collision is a complicated issue. It depends on several factors, including how much compensation you are receiving, from whom you are receiving the compensation, and why you are receiving that compensation. If you are being compensated for your medical bills, lost wages, pain and suffering, or other non-economic personal injury damages, the leasing company has no right to claim a part of that recovery. These damages are meant to compensate you for your injuries and related losses, and the leasing dealership should not try to claim a share of those damages. However, property damage compensation is more complicated. The leasing company may have a right to claim a share of compensation for property damage. For example, if immediate repairs after an accident are made by the leasing company and then you file a fault-based property damage claim against a negligent driver, the dealership is likely to seek reimbursement for its expenses.

What is a Double Charge for Vehicle Repairs?

In a leased vehicle accident case, a “double charge” refers to a situation in which the dealership—the company you leased the vehicle from—charges you a second time for repairs because it claims that unauthorized repairs were improper or inadequate. You can usually avoid this type of issue by making sure that you notify the leasing company about any accident.

What Damages are Recoverable in a Leased Vehicle Crash? 

In Florida, crash victims have the right to pursue compensation for economic and intangible damages. Your car accident settlement or verdict will generally be compensatory in nature—meaning it will be linked to the actual damages that you sustained in the crash. You may be entitled to recover for the following types of damages in a leased vehicle accident:

• Vehicle repairs or vehicle replacement;
• Costs associated with the lease;
• Hospital bills and other medical expenses;
• Loss of current and future wages;
• Pain and suffering;
• Disability or disfigurement; and
• Wrongful death of a family member.

Why Hire BK Law for a Lease Vehicle Accident Claim in South Florida 

You do not have to navigate the car accident claims process alone. At Bernheim Kelley Battista, LLC, we know how to hold negligent motorists and big insurance companies accountable for paying claims. Among other things, our Fort Lauderdale car accident lawyers will:

• Conduct a free, comprehensive review and analysis of your car accident injury claim;
• Investigate the accident, gathering the evidence you need to protect your rights;
• Help you navigate all issues related to your vehicle lease; and
• Take all necessary legal steps to ensure that you get real justice and real results.