Your first thought must have been, ‘So, my leased car was totaled now what?‘ If you are a leased car owner asking yourself this question, then read to find out what to do!
Even if you are looking to get a leased car, you should read along to find out what is the worst thing that can happen and more!
Why lease a car?
Some people choose to lease a car instead of owning one. Usually, one has to pay the lease amount as per the agreement until they return the car.
Leasing involves no obligation on the user to buy the car even if there is some additional wear and tear at the time of return.
The user only has to maintain the car in good condition and pay additional charges in case of wear and tear, extra miles run, etc.
You can change cars multiple times by leasing, and if you do not want to stick with one car for a long time, leasing is the thing for you.
What is a totaled car?
When the insurance company declares that the car’s repair cost is 65% more than its value, it becomes a totaled car.
When the car involved is one on a lease, then you have to repair the vehicle and pay the amount in the lease agreement to the lessor.
What to do next?
Contact an attorney to know how to deal with the situation. If you are responsible for the accident, you are in a huge mess.
You will have to pay for the victim’s compensation if your insurance amount does not cover it. Anyways, you will not get compensation for the accident even if you are injured as you are at fault.
So, you will have to take care of the leased car’s repair and pay compensation for the victim.
An attorney can help you find ways to reduce your financial burden. For instance, the attorney will ask you to check if you have gap coverage.
Gap coverage includes the difference between the car’s value and repair cost. If you have decent gap coverage, you can buy the car and pay the remaining amount to the lessor.
Concluding thoughts
Totaling a leased car is one of the worst possible outcomes of getting a leased vehicle. Things get even messier if you are the party at fault.
So, without wasting much time, contact an experienced attorney to find a way to best resolve the case.
