Accidents and leased cars?

Question

I have been driving a leased car for the past 15 months. If I get into an accident or a victim of an accident, what happens to the car? Will the car be paid off and the lease terminated or will I be offered another car? What will my insurance do to get me another car, and possible the balance on the leased car? Or will the car be repaired? Do I even have an option, either to refuse a repair and request a payoff? Or will I continue to make payments? Please.....any helpful comment will be greatly appreciated....

Answer 1

This should all be in the terms and conditions you signed. I don't get why you are asking if the car will be paid off, if the car is being leased to you then whether it's paid off or not doesn't matter, that's the owners concern. Most likely the company that is leasing it to you will give you another car while the insurance is sorted out, just make sure you have the correct insurance policy.

By payoff, do you mean that if the lease is stopped do you get any money back, it sounds like you paid the lease in advance, I assume if they don't give you another car then they must refund on unused time if they don't honour a lease that you have paid insurance on

Answer 2

Get full coverage insurance.

Answer 3

LEASE is just another name for LONG TERM RENT.  You do not own the car, yet you are fully responsible for the car.

If the car was totaled and you have full coverage, then the insurance will pay the LEASE company.  Remember the car is owned by the lease company.

If the car was just damaged, you will have to repair it.  Again the car is NOT YOURS.  The repair / insurance money has to go to making the car new - or else you will pay even more to the lease company when you return it.

No you do NOT have a choice.

Good Luck...

Answer 4

If the car is totalled, the leasing company will get the value of the veh.  If there are a lot of miles, or if you're not taking care of it, it will not be considered in excellent condition and they can take money off for that.

For example: If you owe $10,000 and the car is only worth $8,000, the check will be sent to the leinholder for $8,000 minus your deductible.  You owe the rest of the loan unless you have Gap Insurance.  Gap insurance would cover the rest.

The insurance company will not get you another car.

If the veh is repairable, you will be issued a check made payable to you and the leinholder.  You both have to sign it and you have to get the car repaired.

No, you cannot refuse and request a payoff.