Accidents are always unexpected and can often feel overwhelming, especially if you’re driving a leased car. If you find yourself in the unfortunate situation of getting into a car accident that wasn’t your fault and totaling your leased car—you may understandably have many questions. Rest assured, understanding the process helps ease your worries. In this article, we’ll explore how to navigate the aftermath of an accident when your leased car is totaled and you are not at fault.
If You Total a Leased Car, What Happens?
When you total a leased car, the process begins with reporting the accident to your insurance and leasing companies. Your insurer assesses the damage and determines whether the vehicle is a total loss. If it is, they will work with the leasing company to establish the vehicle’s market value. The critical point here is that the leasing company owns the car, so they will be the ones to receive the payout.
Financially, if your leased car is totaled, your insurance typically covers the remaining balance owed on the lease through the settlement, provided you have the right coverage. This insurance is critical because it covers the difference between the vehicle’s market value and what you owe on the lease. If you don’t have gap insurance, you may still be responsible for paying off any remaining balance after the insurance payout. Understanding these implications is crucial; knowing what happens if you total a leased car without insurance will help you make informed decisions.
Insurance Requirements in Las Vegas, Nevada
Knowing the state’s insurance requirements is essential if you live in Las Vegas, Nevada. Here’s what drivers need to have:
- Liability coverage. Nevada law requires drivers to have liability insurance covering at least $25,000 for bodily injury or death per person, $50,000 for total bodily injury or death per accident, and $20,000 for property damage. It covers damages you cause to others in an accident.
- Uninsured/Underinsured motorist coverage. While not mandatory, this type of coverage protects you if you’re involved in an accident with a driver with insufficient insurance.
- Personal injury protection (PIP). Nevada does not require PIP, but having it helps cover medical expenses for you and your passengers after an accident.
To bolster your protection, consider adding collision coverage, which helps pay for damages to your car, even if you are at fault. If your leased car is totaled, and you’re not at fault, having this coverage significantly eases the financial burden. Additionally, purchasing gap insurance helps bridge the difference between what your car is worth and what you owe on the lease.
Recovering Damages After an Accident
If you were involved in an accident in a leased car that was totaled, you may be entitled to recover damages for your losses. Depending on the specifics of your case, you may claim compensation for various types of losses, including:
- Medical expenses. You can recover for costs related to injuries sustained during the accident, including hospital bills, rehabilitation, and ongoing treatment.
- Lost wages. If your injuries prevent you from working, you can claim compensation for lost income during your recovery period.
- Pain and suffering. You can seek compensation for the emotional and physical distress you’ve experienced due to the accident.
- Vehicle replacement costs. If your leased car is totaled, you may recover the vehicle’s value through your insurance or from the at-fault party’s insurer.
In summary, while being involved in an accident resulting in a totaled leased car is daunting, understanding what happens next empowers you to take the right steps. From navigating insurance procedures to seeking damages for your losses, staying informed about your rights is crucial. If you ask, “What happens if you total a leased car?” remember that support is available, and you don’t have to face the aftermath alone.
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Since its founding in 2020 by Blake S. Friedman, Esq., Friedman Injury Law has recovered over $40,000,000.00 for our clients. Friedman Injury Law is a boutique personal injury law firm providing highly specialized representation for each one of our clients. Our firm has handled over a thousand personal injury cases and recovered the financial compensation that victims need. We provide tenacious and skilled legal representation to clients at one of the most challenging times in their lives. Contact Friedman Injury Law for a free consultation and learn more about how we can help you get the financial compensation you and your family need and deserve.
Blake S. Friedman, Esq. is a personal injury lawyer helping those in Las Vegas, Nevada. Blake was born and raised right here in Las Vegas, Nevada. He grew up watching his father, a battle-hardened lawyer, fight for his clients’ justice in the Clark County court system.