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What Happens if You Total a Leased Car in Phoenix?

November 15, 2022 By John Torgenson

If you drive a leased vehicle in Arizona, you may not be sure what to do if you’re involved in an accident that results in a totaled leased car.

What happens if you total a leased car in Phoenix?

The fact is that if you’re in an accident with a leased car, you may be responsible for some or all the repairs if you don’t respond in time. Unlike buying a car outright, when you lease a car, you essentially rent it for a specified period and are bound by the terms of your lease agreement.

You are typically required by your lease agreement to notify the leasing company immediately following an accident. If you don’t provide details about your accident within a few days, you may lose the right to compensation and may also be responsible for any damage to the other vehicle, as well as any injuries that occur.

If you are unsure of your responsibilities after an accident, contact us as soon as possible so we can evaluate your case.

Who Pays after a Leased Car Accident?

If you’re leasing a car, you’re still responsible for insuring it. That means that if you’re in an accident, your insurance will be the primary coverage. However, your lease agreement may have requirements for additional coverage, such as gap insurance. That means that if you total the car, your insurance may not cover the entire cost of the lease, and you may be responsible for the difference.

Also, if your car is damaged by not a total loss, you may have an issue returning a leased car after an accident. It’s important to address your situation with your leasing company as soon as possible.

What Should I Do After a Crash Involving My Leased Vehicle?

If you’re involved in a car crash while driving a leased vehicle, your health is the most critical issue. If you are seriously hurt, call 911 and wait for paramedics to arrive.

If you are not seriously injured and can do so, you should move your vehicle to the side of the road to avoid causing further damage or blocking traffic.

Once you’re safely off to the side, you should assess the damage to your car and call the police to report the accident and your location. It is also important to take photographs of all the cars involved in the accident and gather driver and witness information.

After the accident, you should notify your leasing company as soon as possible and provide them with a copy or number of the police report. You’ll likely need to get your car repaired, and the leasing company will have specific instructions on how to proceed. In some cases, you may even need to get approval from the leasing company before having any repairs made.

If you are unsure how you should deal with your leasing company, call one of our experienced accident attorneys to discuss your case.

What Is Gap Insurance?

Gap insurance is an insurance policy that helps cover the “gap” between what you owe on your car loan and what your car is worth in the event of an accident. Was your leased car totaled in an accident? If so, your insurance company will only pay you the car’s actual cash value, which may be less than what you owe on your loan.

If you are involved in an accident and your car is totaled, gap insurance will pay the difference between the actual cash value of your car and the amount you still owe on your loan.

Gap insurance is not required if you own your car outright, but it is required if you are leasing a car. Most leasing companies require gap insurance, and some will even provide it for you as part of your lease agreement.

This can help you avoid being stuck with a large bill, and it can also help you get into a new car more quickly.

How Can Torgenson Help?

At Torgenson Law, you are more than just another insurance claim, you’re an individual that deserves the best legal representation. Our experienced attorneys are expert trial lawyers who will stand up and defend your rights in court, if necessary.

Our entire staff will work diligently to uncover every single detail of your accident and your lease agreement to ensure you get the best settlement possible. Our entire staff is dedicated to protecting your rights and helping you recover the maximum compensation for your pain and suffering.

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John Torgenson

After high school, John attended the University of Utah, graduating in 2001. John then attended his dream school, Notre Dame Law School, where he graduated, with honors, in 2004. John is licensed to fight in court for real people in the State of Arizona, the United States Federal District Court of Arizona, and the 9th Federal Circuit Court of Appeals.

Before establishing what is now Torgenson Law, John practiced in the litigation group at Fennemore Craig, the oldest law firm in Arizona, and one of the largest firms in the Southwest. Having practiced at Fennemore Craig in both the defense and plaintiff’s practice areas gives John a complete perspective of the litigation process, and valuable insight into how to efficiently and effectively advance his clients’ interests. His unique and balanced background enhances his credibility with defense lawyers, insurers, and defendants as well as with judges and arbitrators.