Accidents are very common when it comes to driving. In fact, there are thousands of accidents every day. This therefore means that everyone can be in an accident at one time or another. People who are driving leased cars are no exceptions to this. They can also be in accidents; some that can even ruin their cars completely. It is important for the individual to understand and what happens if you crash a leased car. The person who has taken the lease has to consider two different situations. These are the cases when the car sustains a significantly large amount of damage because of the accident or if there is a small amount of damage.
There are accidents that result in minimal damage. This is damage that can easily be repaired and the cost of this repairs is not greater or almost as much as the value of the automobile. The individual who obtained the lease has two things that he must do. These are listed below.
The insurance company can pay for the repairs of the damaged parts. This is minus the deductible that is yours.
2. Cases where the car is totally damaged
These cases are more complicated than the ones where the damaged that is sustained is minimal. This is because of the difference between the actual value of the car and the value that is indicated on the lease.
The first thing that you should do in this case is to notify both the insurance company and the lease company. The damage that has been incurred will be assessed and the insurance company will pay for the damage. The problem arises because the amount that the insurance company will pay is the actual value of the car at the time when the accident occurred. This value is much lower than the value theta is indicated on the lease. This is because the value of the car will depreciate with time.
When it comes down to costs…
This therefore means that the person who took the lease should settle the difference in the two values. This is not easy because the value might be large and therefore difficult to come up with. One of the things that can make the situation better is if the person who leased the car has GAP insurance. As the name suggests, this is a form of insurance where the insurance company is liable to settle this difference between the two values. Another thing that can ensure that you do not have to pay this amount is the small print in your contract. Some contracts ensure that the person who obtained the lease is not liable for this difference in values.
Katie Crown believes that company car leasing is a great practice that benefits both the business and employees. She recommends that you keep your cool and inform police and insurance company immediately following a crash.