Unfortunately, accidents happen. On our roads, there is always a risk of getting into an accident whether it’s because of something you did or someone else’s fault. While having a car accident at any time is an awful experience, it can become more complicated when the collision has happened in a leased car.
If you have crashed your leased car recently, there are certain things you should know. By keeping calm and contacting your insurance company as soon as possible, the outcome of your accident can be managed properly.
Of course, many questions go through your head when you crash a leased car. One of the main queries is what you should do next. To help you understand what happens when your leased car is in an accident and what to do next, we have completed a guide below.
The last thing you want to stress about is the payments on the car or being left carless while having to still pay off the debt. Such thoughts can easily become overwhelming but we are here to put your mind at ease.
Sit back and let us walk you through what happens when you crash a leased car and what you should do.
Keep Safe
If you have just experienced a crash, the most important thing to do is to stay safe. Do not panic and try to keep a clear head during this difficult situation. If possible, try and pull your vehicle into a safe place and park it there. This should be far away from traffic such as a parking lot. If there is moving traffic, you should not exit the vehicle at any point.
If you manage to park your vehicle in a safe spot, you should gather the other driver’s information if someone else was involved in the collision. Retrieve their name, contact information (both phone and email), their driver’s license number, and their insurance policy information.
If any witnesses are present, ask them for their names and contact information too. If the car is in a safe spot, stay inside and call the local emergency services. Immediately dial 911 if you or anyone else is injured. Remain in the car until help arrives.
If necessary, you should visit the hospital as well. If there are any signs of any kind of injuries, you need to be examined by a medical professional as soon as possible. This will ensure that you get the right compensation deserved and so your car insurance can cover any medical bills.
Once you have taken care of yourself and any others in the car with you, it’s time to turn your attention to the insurance and the lease company.
Contact Your Insurance Company
If you are uninjured or have taken care of yourself and others in the car with you, you need to turn your attention to the insurance side of things and the company from whom you leased the car.
Once you have gathered all of the necessary information, you should contact your insurance company and report the accident. This will involve quite a lot of questions from the insurers such as:
- How did the accident occur?
- What is the other driver’s information?
- Who was at fault?
- Can you give us details of all vehicles involved?
You will get asked multiple questions so be prepared to answer all, even what the weather conditions were like at the time of the crash. The more information you can give your insurance company about the accident, the better they and the claims adjuster can understand the case and help you.
You may also need to compile photographs of the accident, medical information, police files, and estimates from the mechanics of the extent of the damage.
From this point, the insurance company will handle the claim. If the car is salvageable, you could be asked to take it to a car body shop. However, the insurance company or lease car company may prepare this for you. It is here that the damage to the leased car will be estimated.
This can occur even if you provide your insurance company with an estimate as they may conduct their own examination to determine if your estimates are accurate or not.
The insurance company’s main goal is to determine how much should be paid out. However, all insurance companies have slightly different policies regarding this.
Once the estimation has been completed, the insurance company will then decide whether to go ahead with repair work or not. If the repair work costs more than the car’s value, the car will be written off. How much the insurance company is willing to payout depends on the particular company and the value of the car.
Contact The Lease Car Company
The final step is to call your lease finance company. Usually, they will find an approved car repair company who will determine the extent of the damage. They will find out whether the car can be fixed or if you will need a new vehicle if it’s a total write-off.
After this, you can sort out the repair’s finances. If you repair the car in advance, there is usually no issue. As long as the car has been restored to its original condition, you can continue to use the car as before.
The process involved with the lease company can be a little tricky, especially when trying to determine the specific amount that you will be required to payout. Moreover, determining how much coverage you have can also be difficult.
If the car is a write-off, the insurance company will pay out a certain amount but you will probably be left with some expenses. If the valuation is enough from the insurance company, the money may be able to cover the remaining lease payments of the car.
Therefore, you will be debt-free. If the money does not wipe out the debt, you will have to pay the remaining difference yourself.
On some occasions, your lender may allow you to spread the payments across monthly installments to make it easier for you to pay off your debt.
In Summary
Remember, get all the information required at the time of the accident and report the crash to both your insurance company and leasing company. This will ensure you get all the money you deserve.