If you get in an accident with a leased car, you are responsible for repairs by way of your insurance provider. Additionally, you must notify the leasing company as soon as possible because they technically own the vehicle.
Were you involved in a collision while driving a vehicle you were leasing at the time? The added complications of dealing with a leasing company, insurance coverage, and accident liability can be very confusing after a crash, especially if you sustained injuries as a result of the incident.
Just know that you don’t have to sort through it all on your own. With a Kansas City car accident lawyer by your side, you can rely on your legal counsel to protect your interests and provide clarity every step of the way.
Insurance Requirements for Leased Vehicles
Missouri law requires all drivers to carry liability insurance with minimum coverage limits of $25,000 for bodily injury per person, $50,000 for total bodily injury per accident, and $25,000 for property damage per accident. However, leased vehicles have higher insurance requirements.
So, what happens if you get in an accident with a leased car? The leasing company will need to be informed about the crash. Leasing companies often mandate certain types of coverage to protect their investments in the event of situations like this:
- Comprehensive coverage
- Collision coverage
- Standard liability insurance
Comprehensive coverage protects the vehicle against damage not caused by a collision, such as theft, vandalism, or weather-related incidents. Collision coverage addresses damages resulting from accidents with other vehicles or objects.
The lessee is usually responsible for maintaining these coverages for the entire lease term. Failure to comply can result in penalties, lease violations, and potential financial liability for repairs. Drivers should verify that their insurance policy meets these two standards:
- Missouri state minimums
- The leasing company’s requirements
Policies should also cover rental reimbursement, gap insurance, and any additional fees stipulated in the lease agreement. Gap insurance is particularly important for leased vehicles.
This is because it covers the difference between the car’s actual cash value and the remaining balance owed to the leasing company if the car is totaled in an accident.
Liability in Accidents Involving Leased Vehicles
When a leased vehicle is involved in an accident, liability is determined similarly to accidents with owned vehicles. Missouri follows a fault-based system, meaning the at–fault driver is responsible for compensating the other party for damages.
If the lessee caused the accident, their insurance generally covers damages to other vehicles, property, and individuals. However, the leasing company may also be involved in the following circumstances:
- If the damages exceed coverage limits
- If the terms of the lease require the company’s involvement in claims
If another driver is at fault, their insurance should cover the damages. Missouri law also allows injured parties to pursue compensation directly from the at-fault driver or their insurer.
In accidents involving leased vehicles, the lessee must communicate with both their insurer and the leasing company to ensure that repairs and claims comply with all contractual obligations.
Contact our Kansas city personal injury lawyers now.
Reporting the Accident
Missouri state laws require you to report accidents to either the local police or the Missouri State Highway Patrol if the collision involves injury, death, or property damage exceeding $500. Accurate reporting is crucial, especially when a leased vehicle is involved.
This is due to the fact that the leasing company may need official documentation to process claims. After reporting the accident to law enforcement, drivers should promptly notify their insurance company and the leasing company.
The leasing company may have specific procedures for reporting accidents, including designated claims adjusters and repair facilities. Failure to follow these procedures can result in denied coverage, financial penalties, or lease violations.
Vehicle Repairs and Leasing Company Involvement
After an accident, repairing a leased vehicle often involves coordination between the insurance company and the leasing company. Most leases require that repairs be performed at approved facilities to maintain warranty compliance and ensure quality.
Comprehensive and collision coverage typically pays for repairs minus any deductible. Leasing companies may also require inspections to confirm that repairs meet manufacturer standards and do not diminish the vehicle’s residual value. Lessees should do the following:
- Document the damages
- Keep any receipts
- Maintain communication with their insurer and the leasing company
This is important to do throughout the entire repair process. In cases where the vehicle is totaled, the leasing company is usually paid the vehicle’s value under the lease contract, and gap insurance may cover any outstanding balance.
Personal Injury Elements Worth Considering
Accidents involving leased vehicles can result in bodily injuries, which are covered under the at-fault driver’s liability insurance. Missouri’s fault-based system allows injured parties to recover compensation for the following collision–related matters:
- Medical expenses
- Lost wages
- Pain and suffering
- Other damages
Lessees who sustain injuries in a leased vehicle should ensure that all claims are properly documented and communicated to the insurance company. Medical expenses from an accident may exceed the minimum liability limits, particularly in serious collisions.
In these cases, umbrella insurance policies can provide additional protection. Lessees should also review whether their health insurance, workers’ compensation, or other policies may cover accident-related medical costs.
Call Our Law Firm to Learn What Happens if You Get in an Accident with a Leased Car
If you’ve been in an accident while driving a leased vehicle, the added insurance and liability questions can feel confusing and stressful. You don’t have to go through this situation all by yourself.
Instead, let an attorney at the law firm of Foster Wallace Personal Injury Lawyers help you. We have 45 years of combined experience helping clients in situations just like yours through the legal process after collisions involving leased cars.
Our Kansas City attorneys can protect your rights and help you handle insurance claims while pursuing fair compensation on your behalf. Reach out to our office today. We can start reviewing your case, explain your options, and make sure you’re treated fairly every step of the way.
