Having a car of your own comes with the burden of ownership and the associated costs and hassles. In what ways can it be convenient to use your car without actually owning it? That’s what it means to lease a car, and it’s a good idea until you get into such an accident.
What happens to a car lease if there is an accident? However, that fact does not alter the fact that the leased vehicle is not “legally yours.” Then, how can you begin to take control of the situation? A rental car accident provides a good analogy for the answer. The purpose of this piece is to address that question but to do so, an Orlando car accident lawyer must first examine a lease in great detail.
What Exactly Is A Car Tenancy Agreement?
Simply put, leasing is an alternative to purchasing a vehicle from a dealer. Instead, you pay the dealer monthly for the right to use the leased car, much like renting an apartment. You have two options at the end of your lease: either return the automobile to the dealer or pay the difference between the remaining balance on the lease and the purchase price to take ownership of the vehicle.
Leasing A Car: The Basics
Since you’re only spending for the use of the vehicle, the monthly lease payment is far smaller than the payment on a car loan. The typical length of an automobile lease is between two and four years, after which the lessee can return the vehicle or purchase it. Leasing a car is perfect if you enjoy driving new models but don’t want the responsibility of ownership.
Can You Tell Me What You Need To Lease A Car?
Leasing a vehicle does not exempt you from the need for auto insurance. Leasing a car is a big financial commitment; therefore, it’s important to protect yourself financially in case of an accident. You need to have the state-required minimum liability insurance, collision insurance, the minimum amount of liability insurance required by your lease, and gap insurance. If the car is worth $10,000, that’s about what you need.
If you own that policy, you’re covered and ready to go! Leasing a car is a good deal for everyone concerned, up to the point of an accident, when many individuals become confused. What happens to automobile leases if there is an accident?
Recovering From A Car Wreck
The first thing you should do after an accident is to check for injuries to yourself and others. Make sure everyone is safe before calling the police. When a car accident occurs with a leased vehicle, the police are tasked with documenting the incident, filing a report, and finding fault, if possible. The police will gladly cooperate with you and the lawyer to offer a complete picture of the situation.
Talking with the police after an accident, after making sure no one was hurt and regardless of who was at fault, is a good idea.
Always Remember Who You Leased From And When
Once the damage to your automobile has been inspected, they may declare it a total loss or arrange to have it repaired, depending on the terms of your lease. In the event of a complete loss, the lessee’s auto insurance provider is responsible for compensating the lessor for the worth of the leased car. You may still be responsible for making the remaining lease payments depending on the conditions of your lease. GAP insurance may cover this cost if you have it and use it to lease a car.
Dealing With Your Lease Agreement
If you want to be sure you’ve done the minor difference between leased car accidents and typical automobile accidents, calling a professional lawyer is your best bet. They can negotiate with the various insurance providers to determine who is responsible for what and how much it will cost to restore your vehicle.
Leasing a vehicle requires that you be financially stable and emotionally stable enough to deal with the possibility of an accident and any consequences that may arise from it. Hold on to all that information, and may you never need the insurance it provides.