When A Leased Car Is Totalled What Happens?
What will happen to your car if it is wholly totaled out? It is a situation that anyone would be very unhappy with. If you own a car, you already know how important it is and how much it can cost you in the long run. Being prepared for the financial consequences of not having auto insurance when a leased car is totaled out would be best. Read on to discover what happens when a car is totaled out and how to prepare for such a situation.
You may be in the unfortunate situation of purchasing a new car from the dealership when your leased one is totaled out. You may want to wait until the end of your lease to do this, but there are some significant consequences to this. First, you will likely have to pay extra for your car insurance. This extra money could put you into bankruptcy, and you may not even get a chance to buy a new car when approved. Therefore, it is best to immediately buy an additional insurance policy to protect yourself if you need it.
What Is A Totaled Car?
A vehicle is deemed “totaled” by the Nevada Department of Motor Vehicles when its damage surpasses 65% of its fair market value. Put another way; insurance companies may write off a car as a total loss if the expected cost of repairs is greater than 65% of the vehicle’s worth immediately before the accident.
One important thing to consider is the car’s fair market value. The value you spent on the car isn’t the same as this value. It also has a different worth than the remaining balance on your lease. Instead, it is the car’s retail value determined by the state of the local market just before the accident. The significance of this discrepancy will arise in insurance coverage.
What happens if a leased car is totaled?
After an accident involving a leased vehicle, you must follow the same steps as you would with any other car accident. Among these steps are:
- Move your car to a safe location and stay on the scene.
- Call emergency services and then see if anyone needs medical attention.
- Exchange contact information, registration details, and insurance policies with the other driver.
- Don’t admit fault.
- Take lots of pictures to document the accident.
- Gather every witness’s contact information.
- Seek immediate medical attention.
- Speak with your personal injury attorney, who will contact the insurance company.
Nevertheless, handling a totaled leased car accident presents more challenges. You must notify the leasing company, your insurance company, and your lawyer about the accident. You will then have to take your vehicle to the auto repair shop. The insurance company may write off the vehicle as a total loss if the repairs are large enough.
While you lease a car, you don’t truly own it, unlike when you finance it or buy it outright. You promise to return the car satisfactorily once you sign a lease agreement.
What occurs afterward if a leased vehicle is totaled? You are liable for the remaining lease balance if your leased vehicle is totaled. It is the reason it’s so important to get enough insurance.
Who Is At Fault After My Leased Car Is Totaled?
Two possibilities typically occur during a leased car accident:
Leased Car Accident: Not My Fault
You might file a claim against the at-fault driver’s insurance if you weren’t at fault in the accident. It implies that the other driver’s insurance will cover the replacement cost of the car, your medical expenses, and any suffering or pain you may have had.
Alternatively, you may choose to file a lawsuit over the negligent driver. That is usually when their insurance doesn’t compensate for your losses. Alternatively, there might be disputes about shared faults. However, things can get complicated, so speak with a car accident attorney to learn your best options.
Leased Car Accident: At Fault
You must make a claim regarding your collision or the comprehensive coverage when your leased car is totaled since you were at fault. Usually, your insurance will reimburse the market value of your vehicle. It does not exempt you from the terms of your lease, as was previously discussed. The difference between the market’s value and the remainder of the lease value is thus covered by gap insurance, which is helpful.
Typical car accident and fault laws are applicable in both cases. Known as a tort state, Nevada is a fault state. It means that the party who caused harm must pay for the losses incurred by the other parties.
It can be difficult to determine fault. The identity of the person at fault in an event depends on several factors, including speed, weather, police presence, and witness accounts. Consult a lawyer for advice on how to proceed with the legal system.
Upon learning that your car has been destroyed, your auto insurance company will immediately issue a check for the total amount of the loan you received. In most cases, the money that they were given is a lump sum of around $300. They will then instruct you on how to get the car back into good working condition. They will first want to replace your license plates, change the title, and take the car for test drives. They will probably give you about two weeks to either take this action or they will write you a check for the total amount of the outstanding balance. Once you receive the check, you can pay off whatever outstanding balance you left on your vehicle lease.
If you do not fully pay off your car lease when it is wrecked, you can anticipate being charged the same amount as before when you try to use it again. It can become costly if you do not have car insurance. However, if you do have car insurance, it will cover the cost of repairing or replacing your vehicle. You might be eligible for compensation if your renter’s insurance did not cover your vehicle.
It would be best always to have car insurance when driving a rented vehicle. Many people will need more coverage or purchase a policy they will not use. It can lead to big problems if they get into a car accident without insurance. Even if you are insured, you need a way to get to your destination to be able to get to your destination. It can cost you a ton of money if you do not have insurance.
You need good car coverage when it is not in your possession for many reasons. Car insurance will help you out in these situations. When a leased car is totaled out, there are other things that you can do. You can use the policy that came with the car as collateral for an auto loan, and this can save you money.
How A Car Accident Attorney May Help
You can see that a total loss of your leased vehicle can be challenging. Dealing with leasing companies, insurance companies, and other drivers might take a lot of work. Additionally, you have a certain amount of time to file an insurance claim following the incident.
Have a reputable car accident lawyer manage your case rather than handle it alone. When interacting with insurance providers, an attorney helps level the playing field. They’ll also devise a plan to provide you with the best opportunity to maximize your earnings.
Reap the benefits of knowing that an expert is on your side.
Learn more about What Happens When Someone Is Killed In A Car Accident.
Hinds Injury Law Las Vegas
600 S 8th St Suite 140, Las Vegas, NV 89101