There are many advantages to leasing a vehicle—from cheaper repair costs due to warranties to low monthly payments. However, since you aren't technically the car's owner, what happens if you are involved in a car accident? To understand your rights and where liability lies, below are answers to common questions.

What to Know About Car Accidents in Leased Vehicles

What type of insurance do I need?

When you lease a vehicle, you’ll need to get car insurance in accordance with the lease agreement and state laws. Make sure the package includes liability coverage, as it will pay for medical expenses, lost wages, and other damages to other drivers if you were at fault.

If another driver is responsible for the accident, their insurance should cover your damages. If not, consider pursuing a lawsuit for compensation.

Who should I call after an accident?

As soon as the car accident occurs, call 911. Emergency responders will detail the scene in an official report. Your attorney can submit this statement into evidence for an auto accident or personal injury case should you take that route. Then, let the leasing company and insurer know. They will tell you what information you need to provide them with.

What else should I do before leaving the scene?

Although police and paramedics will document injuries, conduct your own investigation before leaving the scene. Get witness statements and contact information for bystanders. You should also gather the contact details for parties involved to give to your attorney. Take out your smartphone and snap photos of vehicle damage, road conditions, and any other images at the scene that can strengthen the validity of your claim.  

What do I owe?

If the car can be repaired, the auto insurer will typically pay out for repair costs up to the policy coverage limits. You will be responsible for the deductible. If the cost to repair is more than a specific percentage of the car value, the insurer might consider the car a total loss. You will get money for the car’s current value and be responsible for covering the remaining lease payments.

If you were involved in a car accident in Harris, Fort Bend, or Waller Counties, contact the attorneys at Reed & Terry, L.L.P. for help. With over 100 years of combined experience, the partners will fight on your behalf to secure compensation for injuries sustained in car wrecks. Read client testimonials online. Call (281) 491-5000 for a consultation at the Sugar Land, Richmond, or Katy, TX, office.