What Happens if You Crash a Leased Car?

When you crash a leased car, the original terms of your lease agreement remain the same. This means you’re responsible for the value of the vehicle. It may sound daunting, but it’s a standard part of leasing agreements.

Typically, when you lease a vehicle, you must have comprehensive insurance coverage. In the event of an accident, your insurance company will step in to cover the damages, subject to the terms of your policy. This can significantly alleviate your financial burden and provide a much-needed safety net.

Here are some of the key elements of standard lease contracts:

• Insurance Requirements: While the specifics vary, all lease agreements require you to carry auto insurance. This typically includes both collision and comprehensive coverage. These coverages protect you and the leasing company from financial loss if you get into an accident or your vehicle is damaged.
  • Collision Coverage covers damage to the leased vehicle resulting from a collision, regardless of who is at fault. This money helps repair or replace the car when it’s damaged in an accident.
  • Comprehensive Coverage covers damages to the leased vehicle from non-collision incidents, such as theft, vandalism, or natural disasters.
• Damage Clauses: Your lease will have specific clauses that outline what constitutes acceptable ‘wear and tear’ and what is considered excessive damage. If an accident happens, these clauses help determine your financial responsibilities for repairing damages that go beyond normal usage.
• Lessee Responsibilities: As the lessee, you’re responsible for keeping the car in good condition. This includes addressing any damages from accidents. Your lease agreement will specify how and when repairs should be made and whether they need to be carried out by certified professionals.

After an accident, your insurance will be the primary resource for covering the costs of repairs and preserving your financial health.

It’s crucial to take the right steps after a car crash to ensure the well-being of everyone involved, guarantee that you fulfill your lease obligations, and protect your path to compensation if you choose to file a suit.

From repair costs to potential penalties, a leased car accident can still cost you quite a bit of money. Any damage from the accident needs to be properly repaired. Depending on the lease agreement, you may be required to use specific repair shops or parts, which can influence the cost.

In addition to repair costs, you should also be aware of potential penalties. Many lease agreements include terms related to vehicle condition and mileage. If the car accident results in damage that can’t be fully repaired, you might face penalties for returning the car in less-than-expected condition. Similarly, if the car is in the shop for repairs and you need a rental vehicle, this could lead to exceeding the mileage limit specified in your lease, resulting in extra charges.

Fault plays a key role in insurance claims and legal cases. In Arkansas, like in many states, determining fault in a car accident is based on the principle of negligence. This means the person found to be at fault for causing the accident is also responsible for the damages.

Arkansas follows a “modified comparative fault” rule, which allows you to recover damages if you are found to be less than 50% at fault. However, your compensation will be reduced by your percentage of fault.

As a lessee, if you caused the accident, you may be responsible for the damage to your leased vehicle and any other property or medical expenses resulting from the accident. If you believe that you caused the accident — or you aren’t sure — it’s important to contact an experienced Arkansas car accident lawyer immediately. Your attorney can help guide you through the legal process and protect your path to compensation.

If you’re in a situation where you need to return a leased car post-accident, you may face penalties such as lease termination and the associated fees.