Leased vehicles offer many benefits, including lower monthly payments, access to newer models, and flexibility in car ownership. However, being involved in an accident with a leased vehicle in Texas introduces complexities that can confuse even seasoned drivers. This guide offers Austin residents practical, step-by-step guidance regarding what to do after an accident involving a leased car.
What Happens If You Get In An Accident With a Leased Car?
Navigating the aftermath of an accident in which you were driving a leased car can be confusing and stressful, especially when dealing with leasing companies, insurance providers, and other legal requirements. Sandoval & James Personal Injury Lawyers are here to guide you through the process, ensuring you protect your rights and fulfill all necessary obligations.
Contact Sandoval & James Today
- Visit: 4807 Spicewood Springs Rd, Bldg. 2, STE. 100, Austin, TX 78759
- Call: (512) 382-7707
- Schedule: A free consultation to discuss your case.
1. Immediate Steps After a Leased Car Accident
Ensure Safety
After an accident, your safety and that of others involved should be your top priority. Below are several steps to consider at the scene of an accident.
- Move the vehicle out of traffic if it is safe to do so.
- Check for injuries and call 911 for emergency medical assistance if required.
- In Texas, the law requires drivers to report any accident that results in injury, death, or property damage exceeding $1,000 to law enforcement.
File a Police Report
Even in minor accidents, filing a police report is important. Texas Transportation Code §550.026 mandates drivers to report accidents to the local police department or sheriff’s office if they occur outside city limits. For Austin residents, this means contacting the Austin Police Department.
Document the Scene
Proper documentation can be crucial when filing insurance claims or dealing with your leasing company. Be sure to capture:
- Photos of the accident scene, vehicle damage, and any injuries.
- Contact information for the other driver(s) and any witnesses.
- Insurance details of the other driver.
Why It’s Important to Contact an Attorney Early
Reaching out to an attorney soon after your accident helps protect your legal standing and financial interests. Sandoval & James can help you:
- Communicate with Your Leasing Company: Ensure proper notification and compliance with your lease terms.
- Handle Insurance Claims: Manage interactions with insurance companies to avoid costly mistakes or delays.
- Secure Thorough Medical Documentation: Work with doctors who specialize in accident-related injuries and ensure your records support your claim.
2. Understanding Your Lease Agreement
Leased vehicles are not owned by the driver but by the leasing company or financial institution. Therefore, understanding your lease agreement is essential. Pay attention to:
- Insurance Requirements: Leasing companies typically require comprehensive and collision coverage in addition to Texas’s minimum liability insurance.
- Repair Requirements: Most lease agreements stipulate that all repairs must be done using original manufacturer parts at authorized repair facilities.
- Gap Insurance: Leasing companies often require gap insurance, which covers the difference between the car’s actual cash value (ACV) and the remaining lease payments if the vehicle is totaled.
Not sure where to start? Sandoval & James can review your lease agreement with you and help you understand your responsibilities.
3. Insurance Coverage for Leased Vehicles in Texas
Texas drivers must carry a minimum amount of liability insurance to cover bodily injury and property damage. However, leased vehicles often have additional insurance requirements.
Texas Minimum Liability Insurance
- Bodily Injury Liability: $30,000 per injured person, up to $60,000 per accident.
- Property Damage Liability: $25,000 per accident.
Additional Insurance for Leased Vehicles
- Collision and Comprehensive Insurance: Covers damages to your leased vehicle caused by accidents, theft, or natural disasters.
- Gap Insurance: Essential for leased vehicles, this coverage ensures you are not liable for the difference between the car’s ACV and the remaining lease payments if the car is totaled.
When dealing with insurance claims, let Sandoval & James handle communication with the insurance companies so you can focus on recovery.
4. Handling Repairs for a Leased Vehicle
Texas law requires repair shops to provide itemized estimates for parts and labor before beginning repairs. For leased vehicles:
- Use Authorized Repair Shops: Many leasing companies require repairs to be performed at authorized facilities to preserve the vehicle’s warranty and residual value.
- Original Equipment Manufacturer (OEM) Parts: Most lease agreements specify the use of OEM parts for repairs. Failing to comply could lead to additional charges when returning the vehicle.
While the Texas Department of Licensing and Regulation (TDLR) does not oversee general auto repair facilities, shops in Texas must still comply with state consumer protection laws and fair repair practices. You can use the TDLR database to verify licenses for related services, such as towing or vehicle inspections.
Sandoval & James can help you navigate these repair requirements and ensure you comply with your lease terms.
5. What Happens If You Total A Leased Car? Will I Get Money Back If My Lease Car Is Totaled?
If your leased car is declared a total loss, your insurance company will pay the leasing company the ACV of the vehicle. However, if the ACV is less than the amount remaining on your lease, gap insurance can cover the difference.
Steps in a Total Loss
- Notify Your Leasing Company: Inform them immediately about the total loss.
- Work with Your Insurance: Submit the necessary documentation, including the accident report and lease agreement.
- Address Any Remaining Costs: Without gap insurance, you may be responsible for paying the difference out of pocket.
Sandoval & James can help ensure the process is handled correctly and that you’re not stuck with unnecessary out-of-pocket expenses.
Contact Sandoval & James Today
Navigating the complexities of leased car accidents in Austin requires expertise, especially when dealing with leasing companies and insurance providers. Sandoval & James Personal Injury Lawyers are here to ensure you’re protected and supported every step of the way.
- Visit: 4807 Spicewood Springs Rd, Bldg. 2, STE. 100, Austin, TX 78759
- Call: (512) 382-7707
- Schedule: A free consultation today to discuss your case.
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