What should I do if I total a leased vehicle?

Totalled a leased car, what happens next?

No matter how carefully you drive, no one is immune to car accidents. When there's a crash, it's a big shock, even if no one gets hurt. So it's all the more important that you do everything right and keep a clear head. This is especially true if your vehicle is a leased car. Here's a summary of what you need to watch out for and what you should do.

Leasing accident

It's bad enough when you're faced with the wreckage of your own car. With leasing, you don't even own the car, because until you pay it off in full, the lessor remains the owner. You are not allowed to repair your car on your own, but you have to report the damage to the insurance company and immediately to the lessor. The lessor then decides on the further procedure and the repair.

Question of guilt: Who is to blame? Who has to pay?

The question of who is to blame can sometimes be clarified, but sometimes not. As the person involved in the accident, you usually don't have a complete overview of what actually happened. Then experts and surveyors come into play and clarify how the accident happened and who caused it. These three cases exist:

Someone else is to blame

The luck of the draw: The damage to your leased car must be paid for by the insurance company of the person who caused the accident. But you can't just take the vehicle to the nearest repair shop. The lessor may use special contract workshops or handle the matter himself with the insurance companies. The exact procedure can be found in the details of your leasing contract.

The blame lies solely on you

As the lessee, you now have to pay not only for the damage to the vehicles of the other parties involved in the accident but also for the damage to your vehicle. In addition to the costs of repair, the lessor will also demand compensation from you for the reduction in the value of his vehicle.

Several parties involved in an accident are partially to blame

The liability for own and third-party vehicle damage is calculated according to individual partial fault.

What does insurance say when leasing?

In addition to the mandatory motor vehicle liability insurance, you must take out comprehensive insurance when you enter into a leasing agreement. After all, you're driving a vehicle that doesn't belong to you, and the owner must take out the best possible coverage against damage and default. Important for you as a lessee: If you're not the only one driving a car, but also other persons, this must be included in the leasing contract.

The claims process can be complicated and lengthy. However, if you behave properly at the scene of the accident, it simplifies the process. This checklist will help you in the event of an accident involving a leased vehicle.

• Secure the accident scene: If you're not injured, turn on your hazard lights, put on your high-visibility vest and set up your warning triangle. Make sure that no one else is injured. Otherwise, administer first aid and make an emergency call.

• Call the police: It is no longer mandatory to call the police for minor injuries with no one injured. As a lessee, however, you should do so even then because the police report makes it easier for the insurance company to process the claim. The police report is mandatory if

  • the question of guilt is unclear

  • people have been seriously injured or there has been a high level of damage to property,

  • a person involved in the accident could be under the influence of alcohol or drugs,

  • vehicles were damaged whose owners are not on the scene.

• Make an accident report: Record the location, date and time of the accident. Write down the license plate numbers of all vehicles involved in the accident, as well as the names and addresses of the drivers (preferably from official identification documents) and get the insurance details. Were there witnesses? Then write down their names and addresses as well. Take pictures of the accident scene from all directions and make an accident sketch.

• Even if you are sure that you caused the accident: Have the question of guilt clarified by an expert and do not make an admission of guilt because this can have considerable legal consequences.

• Report the accident within 48 hours to the lessor and the insurance companies - your own and those of the other party or parties involved in the accident - and provide them with a copy of your accident report and your description of how the accident occurred.

There is a total loss: Here's what you need to know

Whether the accident was your own fault or the fault of someone else, if your leased car is so damaged that it can no longer be repaired (economic total loss), the lessor will terminate the leasing contract with you prematurely. In this case, the lessor demands that you pay the leasing installments that are still due until the regular end of the contract. Fortunately, you are insured - aren't you? Unfortunately, both the other party's liability insurance and your comprehensive insurance only pay the current value or replacement value of your car. This is always lower than the remaining amount you owe the lessor for the vehicle. This means that even in the event of an accident for which you are not responsible, you will incur considerable financial damage. To close this gap between the current value and the remaining debt, there is so-called gap insurance.

It is worthwhile to take out gap insurance in addition to comprehensive insurance when leasing. Some lessors even explicitly require it. The insurance also covers you if your leased car is stolen. As a rule of thumb, the higher the purchase price of your car, the more sensible gap protection is. In the case of high-priced vehicles, the loss of current value is particularly dramatic. By the way, the term of this insurance is linked to the term of the leasing contract, so you don't have to cancel it separately.

Lease or subscribe?

Leasing makes automotive dreams come true for everyone. Since you don't own the car until the end of the lease, lessors require comprehensive insurance coverage, which you must add to your monthly payment in addition to taxes and vehicle liability insurance. In addition to partial or comprehensive insurance, you should consider taking out gap insurance to avoid paying extra in the event of a claim. All this increases your monthly burden.

You can also get the car of your dreams with a CARIFY car subscription, just much more flexibly adapted to your needs and with the option to change. All running costs are included in your monthly installment, and CARIFY makes it easy to settle claims in the event of an accident. Even in the event of a total loss, the costs remain manageable for you, and you don't have to take out extra gap insurance.

Get the all-around carefree package from CARIFY!