Crashing a car can be a disheartening experience for most, but the situation might seem even more complicated and stressful when the vehicle involved in the accident is leased. If you are currently leasing a car, it is important to understand the steps and implications when dealing with a car accident. From the moment of impact to the final resolution with your leasing company and insurance, knowledge is power in guiding you through the process of recovering both emotionally and financially.

This comprehensive guide will provide you with valuable information on what happens if you crash a leased car and how to handle the aftermath of such an event, and how a car accident attorney can help.

• What Happens When You Crash a Leased Car in Texas
• Initial response to the leased car accident
• Ensuring safety and seeking medical attention
• Dealing with insurance companies
• Negotiating with leasing companies
• Documenting the leased car crash
• Notifying the leasing company and insurance company of the leased car accident
• Insurance and repair implications
• Legal implications
• What if your leased car is deemed a total loss?
• Managing lease payments and end-of-lease terms
• Exploring options for a replacement vehicle
• Consulting an attorney
• Conclusion

If you are leasing a vehicle and find yourself in a car accident in Texas, the aftermath may feel overwhelming. You might be wondering what will happen to your lease and the leased car, how your insurance will come into play, and if you will be facing any financial penalties.

Here are the steps you need to take after a car accident in Texas when leasing the vehicle:

Merely being in a car accident is a disorienting experience. A sudden crash can leave us confused and flustered, making it crucial to know beforehand the right steps to take. First things first, ensure the safety of everyone involved and contact the proper authorities to report the accident. Exchange information with the other party, such as insurance, contact details, and license plate numbers. Keep your leasing company in the loop; let them know about the crash as soon as possible. Please note that your immediate responsibility is to protect the vehicle from further damage.

When the authorities arrive at the scene of the accident, you should follow their instructions and seek medical attention if needed. Even if you feel ok right now, visit a doctor as soon as possible to get checked out.



Also, make sure that your leased car is in a safe place; if it’s not drivable and needs to be towed, notify your leasing company and seek assistance.

When it comes to car accidents involving leased vehicles, you will most likely need to work with both your insurance policy and the leasing company’s policy. The best way to ensure that all the right steps are taken is by filing an insurance claim as soon as possible. Cooperate with the representatives from your insurer and the other parties involved in the accident.

Once all of the legal steps are addressed, you should contact your leasing company or car dealership to determine their next course of action. In some cases, they may require that you purchase the vehicle. The vehicle lease agreement will likely include details of the leasing company’s enforcement.

If so, you will need to work out a payment plan or negotiate for lesser financial obligations. Vehicle repairs might also be included in the negotiations.

When dealing with a car accident, pictures and videos can be invaluable forms of evidence in case questions and disputes arise. Take photos of the condition of both vehicles as well as any damage caused by the impact. Make sure to get contact information from any witnesses at the scene. Record your memory of what happened while it is still fresh in your mind and take notes for further reference.

Once you can make safe contact with your leasing company, inform them about what happened and provide all pertinent details regarding the crash. Your lease agreement will include an insurance clause that outlines your responsibility in such cases. Similarly, you will need to contact your insurance company and provide them with the same information. Depending on the type of insurance coverage you have, this could result in paying a deductible or other financial penalty.

Firstly, it is important to understand that car lease agreements are subject to Texas state laws. In the event of an accident, you must report it to your insurance company and the leasing company you are working with. As a lessee, you are required to carry liability and collision insurance that meets the state's minimum coverage requirements. Additionally, leasing companies often require lessees to maintain GAP insurance that helps cover any difference between the vehicle's current value and the remaining lease payments in case of a total loss accident.

It is essential to read and understand the insurance policy associated with a leased vehicle. In most cases, the lease contract would require that you carry comprehensive and collision insurance in addition to liability coverage. This ensures that the leased car is financially protected in the event of accident-related damage. However, each leasing company may have specific repair requirements in case of a collision. Some companies would insist on using original equipment manufacturer (OEM) parts for repair work, while others may allow aftermarket parts. Be sure to clarify these details with both your leasing company and the insurance adjuster handling your claim.



If your vehicle is repairable following an accident, your insurance provider will determine the extent of the damages and coordinate repairs with a certified repair facility. You will be held responsible for the deductible as mandated by your insurance policy. Once the vehicle has been professionally repaired and safety inspections are completed, you may continue with your lease agreement.

In the event of an accident, it is important to contact your insurance company and leasing agency as soon as possible. If you fail to notify them promptly, you may be held responsible for damages that could have been avoided or covered by insurance if reported early on. Additionally, depending on the nature of the crash, you may be held legally responsible for damages to property and/or bodily injury of another party.

In cases where the leased vehicle is declared a total loss, insurance companies will follow the Texas insurance code to determine the vehicle's actual cash value (ACV). Your leasing company, together with the insurance provider, will cross-check the ACV and remaining lease payments. If the ACV is less than the outstanding lease balance, GAP insurance will cover the difference. However, without GAP insurance, you may be held responsible for paying the difference out-of-pocket.

A car is usually considered a total loss when the cost to repair the damage exceeds the vehicle's actual cash value (ACV). In such a scenario, insurance companies provide the leasing company with a settlement amount to cover the car's ACV. In most cases, this settlement should cover the remaining value owed on your lease. However, if there is a gap between the ACV settlement and the outstanding balance on your lease, you will be responsible for covering the difference unless you carry gap coverage as part of your insurance policy.

Crashing a leased vehicle can result in altered lease payments and end-of-lease resolutions. Your lease payments may increase if your insurance does not cover the entire loss. This could occur in situations where you are responsible for a higher deductible, or the insurance only covers the partial loss. Be sure to read your leasing contract and communicate effectively with your leasing company to understand the potential changes in your lease agreement.

If your leased vehicle is deemed a total loss or requires an extended repair period, you would need to start looking into the process of obtaining a replacement car. Be aware that each leasing company will have its policies in these situations. Some may allow you to transfer the remaining duration of your initial contract to a comparable replacement vehicle, while others may require the initiation of a new lease. Always discuss your options with your leasing company and choose the best possible solution according to your needs and preferences.

If all of this seems too much to handle, consider consulting with a car accident lawyer in Texas who can provide legal advice and help negotiate the best possible outcome.

Leased vehicle accidents are complex and require careful consideration from all parties involved. When it comes to an accident in a leased car, understanding the full scope of your legal rights and obligations is key. An attorney can help you navigate these complex matters and ensure that you are adequately compensated for damages or taken advantage of by your leasing company or insurance provider.



They can also help you understand your rights under the law and provide representation in court if necessary. An experienced motor vehicle accident attorney will be able to assess the situation, advise you on how to negotiate with insurance companies or leasing agencies, and protect your interests throughout the process.

Experiencing a crash in a leased car can be an overwhelming prospect. But being aware of the steps and implications involved in handling the aftermath can undoubtedly make the process smoother and more manageable.

By maintaining clear communication with your insurance provider and leasing company, understanding your rights and responsibilities, and being proactive in exploring your options, you can recover from this unfortunate event with minimal emotional and financial impact. Remember that being prepared and informed is the key to effectively managing the consequences of crashing a leased vehicle.

The Crash King is here to make your life easier. He specializes in helping you navigate the complexities of an auto accident and taking care of all related paperwork. Contact us today for more information on how we can help manage your leased vehicle after a crash.