Oct 10, 2024

What if I’m in a Car Accident While My Car is on Lease?

Car accidents can happen when you least expect them, and the situation can become even more complicated if your vehicle is leased. In Florida, specific rules and procedures apply when handling an accident claim involving a leased car. If you have been in a car accident with a leased car, you should seek dedicated car accident legal help in Florida.

What is Covered in a Car Lease Agreement in Florida?

A car lease is a contractual agreement where you rent a vehicle for a specific period, usually 2 to 4 years, and make regular payments during this time. The lease agreement outlines what is covered, including maintenance, mileage limits, and what happens in the event of an accident. In Florida, your lease agreement may require you to have comprehensive collision insurance in addition to the state’s mandatory minimum coverage of Personal Injury Protection (PIP) and Property Damage Liability (PDL).

Insurance Considerations for Leased Vehicles in Florida

In Florida, all drivers, including those with leased vehicles, are required to carry specific types of insurance. The minimum coverage includes:

  • Personal Injury Protection (PIP): Covers medical expenses, lost wages, and other related costs for the policyholder, regardless of who is at fault in an accident. The minimum requirement is $10,000 in coverage.
  • Property Damage Liability (PDL): This liability insurance covers damages caused to another person’s property in an accident. The minimum requirement is also $10,000 in coverage.
  • Comprehensive and Collision Coverage: While not required by law, many leasing companies may require you to carry both comprehensive and collision coverage in Florida. Comprehensive insurance covers damage to your vehicle from non-collision-related incidents like theft, fire, or vandalism. Collision insurance covers damage to your car resulting from a collision with another vehicle or object.
  • Gap Insurance: This coverage is not mandatory but is usually recommended for leased vehicles. Gap insurance covers the difference between the amount you owe on your lease and the actual cash value of the car if it is totaled. Some lease agreements include gap insurance, typically listed as a “waiver of responsibility in case of loss.”

How to Report Your Leased Car Accident in Florida?

After a car accident with a leased vehicle, the first steps are critical. You must report the incident to the police or Florida Highway Patrol to create an official record. Notify your auto insurance company as soon as possible to start the insurance claim process. You must also inform your leasing company about the accident. They may have specific requirements or procedures you need to follow, as outlined in your lease agreement.

Hire a Car Accident Attorney Who Will Review Your Lease Agreement

An attorney experienced in Florida car accidents can be invaluable in this situation. Your lease agreement likely contains detailed guidelines on how to handle an accident claim. Your attorney can help you understand these terms and ensure that you comply with the fine print. They can also guide you in making decisions that protect your financial interests, especially when dealing with the leasing company and insurance providers.

Vehicle Not Totaled: What Happens Next?

If your leased vehicle is repairable, your auto insurance coverage should take care of the costs, as required by Florida’s no-fault laws. Once the repairs are completed, you can continue with your lease as usual. However, if the other driver was at least 51% at fault, your Florida car accident lawyer might be able to seek reimbursement for your deductible or other expenses from their insurer.

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Totaled Vehicle: What are Your Options?

When your leased vehicle is declared a total loss, the situation becomes more complex. The insurance company will pay the actual cash value (ACV), which is the current market value of the car. You must use this money to pay off the remainder of your lease. Unfortunately, due to vehicle depreciation, this payout may be less than what you owe on the lease. In this situation, your experienced car accident lawyer in Florida might be able to recover the financial shortfall from the other driver’s insurance company.

Coordinating Repairs With Your Leasing Company

Your leasing company may have specific requirements for how and where repairs should be conducted for leased cars. For instance, they might insist that only original manufacturer parts be used or that repairs be done at an authorized dealership. Failing to adhere to these guidelines could result in penalties at the end of your lease, so it’s essential to follow their instructions carefully.

Personal Injury Claim for a Leased Vehicle Accident in Florida

In Florida, if your financial damages exceed the limits of your PIP coverage, your attorney can file a personal injury claim against the at-fault driver’s insurance, just as if you owned the car. This could help cover medical bills, lost wages, and pain and suffering damages not covered by your PIP if your attorney is able to achieve a fair settlement for you with the insurance company.

Returning the Leased Vehicle to Florida

When your lease term ends, or if your vehicle is totaled and you need to return it early, the leasing company will conduct a detailed inspection. This process involves:

  • Pre-Return Inspection: Some leasing companies offer or require a pre-return inspection, typically 30-90 days before the lease ends. This inspection identifies any wear and tear, damage, or maintenance issues.
  • Final Inspection: Upon returning the vehicle, the leasing company will perform a thorough inspection to assess its condition. They will check for any excessive wear and tear, mileage overages, and damage not covered by your insurance.

Legal Help is Here from Experienced Florida Car Accident Lawyers

If you have been involved in an accident while driving a leased vehicle in Florida, dealing with the complexities of insurance claims, lease agreements, and potential financial obligations can be overwhelming. At Nunez Law, P.L., we understand the unique challenges that come with leased car accidents, and we are here to help you every step of the way. Our compassionate and experienced attorneys will carefully review your lease agreement, handle communications with your insurance company, and pursue your claim diligently to ensure that your rights are protected. To schedule your free consultation, call us at (786) 755-1949 or contact us online.