What Happens If You Total A Leased Car In Oregon?
Leasing a car is an attractive option for many individuals who want to drive a new car without the long-term commitment of ownership. However, if you find yourself in an accident, you may be wondering just what happens if you total a leased car. In general, when you lease a car, you're essentially renting it from the dealership or leasing company for a specific period. Therefore, the terms and conditions of your lease agreement will determine what happens if the car is totaled. In this blog post, we'll discuss the steps you need to take and what to expect if you find yourself in this situation.
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The Leased Car is Totaled and You’re Not at Fault
If you're not at fault for the accident that caused your leased car to be totaled in Oregon, the good news is that you won't be responsible for paying for the damages. Instead, the responsible party's insurance company will typically cover the cost of the damages. In Oregon, drivers are required to carry a minimum amount of liability insurance, which can help cover the costs of property damage and bodily injury. If the other driver is uninsured or underinsured, or if their insurance company is unable to cover the full amount of damages, you may be able to file a claim with your own insurance company. However, keep in mind that filing a claim with your own insurance company may result in higher insurance premiums in the future.
In either case, if your leased car is totaled, the leasing company may require you to continue making payments until the lease agreement is fulfilled or until the remaining balance is paid off. This is because the lease agreement is a legally binding contract that outlines your obligation to pay for the use of the vehicle for the specified period, regardless of the condition of the vehicle.
What If I Totaled My Leased Car Without Insurance?
When you total your leased car without insurance in Oregon, it can have serious consequences. When you lease a car, the leasing company typically requires you to carry insurance coverage to protect both you and the company in the event of an accident. If you fail to carry insurance coverage, you could be in violation of the lease agreement and face legal consequences.
If you total your leased car without insurance, you will still be responsible for paying for the damages to the vehicle. This can include the cost of repairs or the full value of the car if it is deemed a total loss. Depending on the terms of your lease agreement, the leasing company may require you to pay for these damages out of pocket or may pursue legal action against you to recover the costs.
Furthermore, if you are found to be at fault for the accident, you may also be responsible for any damages or injuries caused to the other party involved in the accident. This can include medical bills, property damage, and other costs, which can quickly add up and cause significant financial strain.
Always carry insurance coverage when driving a leased car to protect yourself and the leasing company in the event of an accident. If you are having difficulty obtaining insurance coverage, talk to your leasing company or insurance provider to explore your options.
What Steps Should I Take After Wrecking my Leased Car?
If you've been in an accident with your leased vehicle in Oregon, here are some steps you should take immediately:
Check for injuries: The first thing you should do is check yourself and others for any injuries. If anyone is injured, call 911 or emergency services immediately.
Move to a safe location: If your vehicle is obstructing traffic or in a dangerous location, move it to a safer area if you can. If the car is not driveable, turn on your hazard lights or use flares to warn other drivers.
Call the police: Contact the police to report the accident, even if it is a minor fender bender. The police will come to the scene, gather information, and create a report that will be necessary for insurance purposes.
Exchange information: Exchange insurance and contact information with the other driver involved in the accident. You should also get the names and contact information of any witnesses.
Document the scene: Take photos of the damage to your vehicle and the other vehicles involved. This evidence will be helpful when filing a claim with your insurance company.
Notify your insurance company: Contact your insurance company and provide them with all of the information about the accident. Be honest and provide as much detail as possible.
Notify the leasing company: You should also notify the company you leased the vehicle from about the accident as soon as possible.
Check to See if You Have Gap Coverage
Gap coverage is a great idea for anyone who leases a vehicle. Gap coverage is a type of insurance coverage that pays the difference between the actual cash value of your leased vehicle and the amount you owe on your lease if your car is totaled or stolen. This can be particularly important if you owe more on your lease than your car is worth, which is often the case early in the life of a lease.
For example, let's say you leased a car for $30,000 and made a $3,000 down payment. You still owe $27,000 on the lease. If your car is totaled in an accident, the insurance company will only pay the actual cash value of the car, which may be less than what you owe on the lease. If the actual cash value of the car is determined to be $25,000, gap coverage will cover the $2,000 difference so that you don't owe any money out of pocket. While gap coverage is not required by law in Oregon, many leasing companies require it as a condition of the lease agreement. Even if it's not required, it's a good idea to consider purchasing gap coverage to protect yourself financially in the event of an accident.
Contact the Right Parties After an Accident
Following an accident in a leased vehicle in Oregon, there are a few people you should contact right away. First, you should contact the police to report the accident and get a copy of the police report. Next, you should contact your insurance company to report the accident and begin the claims process. You should also contact the leasing company to inform them of the accident and find out what steps you need to take to report the damage to the vehicle. Depending on the circumstances of the accident, you may also want to contact a car accident attorney to help protect your rights and ensure that you receive the compensation you deserve.
How a Car Accident Attorney Can Help
If you've been involved in a car accident in Oregon that has resulted in the total loss of your leased car, a car accident attorney can be an invaluable resource to help you navigate the complex legal system and protect your rights. Here are a few ways a car accident attorney can help you:
● Determine liability: One of the first things a car accident attorney will do is investigate the circumstances surrounding your accident to determine who was at fault. This is important because the party who caused the accident may be held liable for damages, including the total loss of your leased car.
● Deal with insurance companies: Car accident attorneys are experienced in dealing with insurance companies and can help you negotiate with the other party's insurance company to ensure that you receive the full compensation you're entitled to. They can also help you navigate your own insurance policy to make sure that you receive the benefits you're entitled to under your policy.
● Work with the leasing company: If you've leased your car, you'll likely owe money to the leasing company if the car is totaled. A car accident attorney can negotiate with the leasing company on your behalf to minimize the amount you owe or potentially get the balance waived altogether.
● File a lawsuit: In some cases, it may be necessary to file a lawsuit to recover damages for your total loss. A car accident attorney can represent you in court and fight for your rights, ensuring that you receive the maximum compensation possible.
● Recover damages: An experienced car accident attorney will help you recover damages for your medical expenses, lost wages, pain and suffering, and other damages you may be entitled to.
What Happens If You Total a Leased Car Conclusion?
Being involved in any kind of vehicle accident can be a very traumatic event. When your car is a lease and it’s most likely totaled, things can get complicated very quickly. Having a trusted Oregon car accident attorney on your side can make all the difference. Shannon Powell with Powell Law is an experienced car accident attorney who can provide valuable assistance if you've been in an accident and totaled your leased car. He can help you navigate the legal system, negotiate with insurance companies and leasing companies, and fight for your rights. By working with Shannon Powell, you can rest assured that you have a skilled advocate on your side who will fight for your best interests and help you get back on your feet following an accident.
*Nothing herein constitutes legal advice. You should obtain independent legal counsel regarding your specific factual situation.
