So you are driving your leased car and a thought crosses your mind. “What happens if I total my leased car in an accident?” As you know, when you first signed your lease agreement, there were all sorts of coverages that you and the leasing agent went over. However, whether you have a leased car or thinking of having a leased car, here are a few things to know when it comes to a possible future accident in your leased car.
What Is Considered A Totaled Leased Car?
When you total a leased car, it is referred to as a “total loss”. That is when the damages done to the car require repair that costs more than 70% of the car’s value.
Notify the company that leased the car and explain that the car has been totaled, and ask what the current payout is for the car. You should be able to determine this information from your leasing contract as well, but you will want to confirm the exact number with the lien holder.
Gap insurance or Guaranteed Auto Protection insurance is an optional insurance plan for some companies that can be added to your comprehension and collision insurance, but it is better to have it just in case. Without GAP, you become responsible for the difference in what the insurance pays and the terms of your lease and if the amount the car is worth is less than the amount the lien holder requires, you are required to pay the difference to the lien holder.
If the total loss was caused by an accident, fire, hurricane, theft, tornado or vandalism, and you have comprehension and collision insurance, you are covered by your insurance company.
If you need help finding the right car and the right insurance for it, help us help us help you! For more information on finding the best car lease deals or to learn how you can have a successful car lease trade, visit Swapalease.com or contact them at 866-SWAPNOW.