Getting into a car accident can be an overwhelming experience, regardless of the circumstances. The situation becomes even more complex if the accident involves a leased car, and one may be confused about what to do next. However, knowing which step to take can greatly safeguard your legal rights. Let’s find out what happens if you crash a leased car.
At Dyer, Garofalo, Mann & Schultz, we advise individuals involved in a crash with a leased car in Ohio to follow the standard protocol for any car accident. However, we understand that specific actions may be governed by the lease agreement terms, which detail what ought to happen should the leased car crash.
To know exactly what to do, don’t hesitate to reach out to us for a free case evaluation. We will evaluate your unique car accident case and recommend the most appropriate course of action.
A leased car is a vehicle that you essentially rent for a predetermined period. Instead of buying the car all at once, you make monthly payments to use it. The lease agreement specifies the duration you’ll have the car, maintenance and condition, upfront costs, end-of-lease options, and mileage limits, among other terms.
According to Section 2307.34 of the Ohio Revised Code, a leased motor vehicle refers to a motor vehicle that is the subject of a lease agreement governed by Chapter 4901:2-3 of the Ohio Administrative Code or 49 C.F.R. 1057. Additionally, “non-trucking activity” in relation to the operation of a leased motor vehicle includes certain specified activities.
This legal definition determines the scope of liabilities related to leased vehicles in Ohio. It provides a framework for defining and delineating specific activities associated with non-trucking activity in the context of leased vehicles.
When car leasing companies lease out their vehicles, they understand that accidents can happen and are well-prepared for such eventualities. Mostly, the agreement for leased vehicles generally includes specific provisions that dictate what should happen in the event of an accident. Therefore, after an accident, you need to adhere to these guidelines so as to avoid conflicts, legal disputes, or additional expenses.
For example, if the insurance company asks you to get an estimate for the repair costs, you will have to visit a dealer to come up with an estimate. Check out the dealers approved by the car leasing company. This ensures that the vehicle is repaired to its standards and maintains its value. Failing to visit specified dealers or follow the leasing company’s directions could lead to additional charges or disputes.
Therefore, ensure you thoroughly review your lease agreement obligations. Your lease agreement contains detailed instructions on how to handle accidents and repairs. They may specify authorized repair shops, outline procedures for notifying the leasing company, and detail the paperwork required. Ignoring these requirements can lead to legal disputes and greater expenses, as the leasing company may hold you responsible for any deviations from the agreed-upon process.
Like in any other auto accident, you need to follow some steps after crashing a leased car in Ohio. You must ensure that everything is handled efficiently and correctly. We recommend taking these steps which significantly determine the outcome of any legal action:
The first and most important step is to check for injuries. Ensure that you and any passengers are safe. If there are serious injuries, call 911 promptly for medical assistance. Even if injuries seem minor, it’s wise to seek medical attention as some symptoms may manifest later.
Your medical documents can help prove injuries and their extent. This is important when proving your injury claim and may bolster your claim to obtain a favorable outcome.
Make sure to get the insurance info from the other driver(s) involved. This includes names, contact details, insurance policy numbers, and vehicle registration information. Additionally, you will need to gather contact information from witnesses who can provide statements later.
Regardless of the severity of the accident, it’s important to notify the police. You have up to five days to report the incident to the police if the accident causes injury, loss of life, or property damages worth over $1000.
The police will document the incident, create an official report, and assist in managing the scene. This police report will be vital for your insurance claim and potential legal issues.
Take photographs of the vehicles involved and aim to capture the damaged areas. Capture wide-angle shots of the scene, including road conditions, traffic signs, and any relevant surroundings. These photos serve as crucial proof for your insurance claim and can help avoid disputes.
Contact your insurance company as soon as possible to report the accident. Provide them with all necessary details, including the police report number and photos of the damage. Your insurance company will walk you through the claim process and guide you through the subsequent steps.
However, remember to be careful what you say to the insurer. Chances are high that, at this time, you might not record factual statements. To prevent exploitation by the insurance company, courteously insist that your legal representative will issue a statement on your behalf.
The next step is to let your leasing company or dealer know about the accident. They may have specific procedures you need to follow, such as whether to continue with the lease agreement or terminate it. If you don’t notify the dealer within the stipulated time in the agreement, it can result in complications and potential penalties.
The insurance company will most probably want you to obtain an estimate for the repair costs. Your leasing company might direct you to specific dealers or authorized repair shops that they approve. This ensures that repairs meet the leasing company’s standards and maintain the vehicle’s value. Provide the insurance company with the estimate to proceed with the claims process.
If the accident involves significant damage, injuries, fault disputes, lease issues, or insurance complexities, it’s prudent to consult with a car accident lawyer in Ohio. A car accident attorney will help protect your rights, handle the legal processes, and ensure you receive fair compensation. They will help adhere to insurance and leasing company protocols, which will help streamline the process and minimize additional stress.
When leasing a vehicle, you’re required to carry specific types of insurance, including liability, comprehensive, and collision coverage. Liability insurance will address the accident costs if a driver damages someone’s property or injures someone. This is based on Ohio’s minimum coverage limits for all drivers.
On the other hand, comprehensive and collision insurance will cover damage to your leased vehicle from non-collision incidents and accidents, respectively. Most leasing companies also mandate gap insurance, which caters to the difference between the car’s actual cash value and the remaining lease balance if the vehicle is totaled.
After filing an official claim, an adjuster will investigate the accident to determine fault, assess damages, and review your policy coverage. If you’re at fault, your liability insurance will cover the other party’s damages within your policy limits. For your leased vehicle repairs, collision insurance comes into play to absorb the repair costs minus your deductible. Most lease companies require approval for carrying out major repairs to ensure they meet their standards.
If you total a leased car, there are several important factors to consider. Firstly, you remain responsible for the full value of the vehicle as outlined in your lease agreement. This means you owe the leasing company the remaining balance of the lease, even though the car is no longer drivable.
Second, your insurance coverage comes into play here. It will typically reimburse you for the vehicle’s current market value at the time of the accident. When the amount from your insurance equals the remaining lease balance, you may effectively terminate the lease and break even. However, this ideal scenario rarely happens. In most cases, the reimbursement from your insurance won’t cover the full amount owed on the lease and this leaves you with an outstanding balance.
This is where gap insurance becomes crucial. Gap insurance takes care of the gap between what your car is actually worth and what you still owe on the lease. Many lease agreements include gap insurance, which might be referred to as a “waiver of responsibility in case of loss.”
Without gap insurance, you could find yourself in a difficult financial situation. Not only would you be responsible for the remaining balance on the lease, but you might also face early termination fees.
These additional costs can be significant, so gap insurance is an invaluable part of any lease agreement. Your car accident attorney will help review the lease agreement and help fill the gap insurance claim if your leased car is totaled.
In Ohio, it is mandatory by law to have insurance coverage when driving any motor vehicle. Vehicle owners must ensure that they, as well as any drivers they permit to use their vehicle, are insured. Proof of insurance must be presented during traffic stops, accident scenes, and vehicle inspections. The mandatory insurance coverage in Ohio includes:
When you lease a car, you are still subject to Ohio’s mandatory insurance requirements. Leasing companies typically require lessees to carry higher levels of insurance coverage to protect their financial interest in the vehicle.
If you’re injured in an accident while driving a leased car, you might be entitled to compensation for various damages. These payments would help reclaim your life and make it more bearable.
Unless your leased vehicle was defective, the dealer is not responsible for paying you compensation for your injuries. Instead, you’ll need to seek a settlement from the person responsible for the accident.
Typically, you will have to sue the at-fault driver to recover damages. Ohio law mandates that all drivers must have insurance for bodily injury liability. Your attorney will review the accident’s details to determine the full extent of your damages and build a strong case for compensation for the following damages:
You can also bring a claim for compensation for medical expenses linked to your injuries. This includes the following:
If your injuries cause you not to engage in your usual gainful activity, you can seek compensation for the earnings you would have earned if the accident had not happened. This covers the wages you would have earned during the time you couldn’t work due to the accident.
Pain and suffering damages are there to cover the physical pain and emotional burden an accident victim goes through after an accident. This can include anxiety, depression, or a reduced quality of life because of the injuries sustained.
You can still seek compensation for personal property damaged in the accident involving a leased car. These include the vehicle itself, your phone, laptop, and any other personal items inside the car. Check the leasing company’s recommendations on where to undertake the repairs for their leased vehicles to ensure that repairs involve the Original Equipment Manufacturer (OEM) parts.
If your injuries are adversely affecting your relationship with your spouse, you are allowed to seek damages for loss of consortium These compensations aim to mitigate the repercussions on companionship, comfort, and intimacy that arise from the injuries.
In situations where the other driver was grossly reckless, you could have a shot at claiming punitive damages. Also called exemplary damages, these are not always awarded because they are meant to punish the at-fault driver and deter actions of the same nature in the future. Your lawyer will evaluate your case to see if the at-fault party’s actions qualify the threshold of seeking exemplary damages, which will add to your overall compensation.
So, what happens if you crash a leased car? If you suffered injuries, contact Dyer, Garofalo, Mann & Schultz today by calling 1.937.222.2222 or using our online contact form. Speak to a Dayton car accident lawyer to help you if you crash a leased car.
-> See our recent car accident case result.
Before establishing Dyer, Garofalo, Mann & Schultz L.P.A., Doug Mann, a top Ohio Injury Attorney served as a bodily injury claims adjuster at a major insurance firm. With over 40+ years of experience, Doug’s background has proven invaluable in securing maximum cash settlements for his clients swiftly. Since leaving the insurance industry, Doug has devoted his entire legal career to assisting injured clients during their times of greatest need.
This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Founding Partner, Doug Mann who has more than 20 years of legal experience as a practicing personal injury attorney.
Keep up to Date with Our Newest Firm Updates
A truck accident in Dayton, Ohio can turn your life upside down in seconds. The physical pain, emotional shock, and financial fallout can feel overwhelming. In the aftermath, understanding truck […]
Dog bites are not only a painful experience but also a serious public health issue, especially when they go unreported. Which states require doctors to report dog bites is one […]
Neck pain after a car accident isn’t just common—it’s one of the most alarming symptoms people report in the hours or days following a crash. The discomfort can range from […]
If you or a loved one has been seriously injured, please fill out the form below for your free consultation or call us at 1.937.222.2222
