What Happens If You Total a Leased Car?

When you lease a vehicle, you have access to a wide range of benefits that you cannot get when financing or buying, like lower monthly payments, enhanced warranty coverage, and the ability to upgrade to a newer car every few years. But what happens if you total a leased car? Do you still have to pay if you total a leased car? Discover the answers to these questions below, as the Pfaff Leasing team takes you through what happens if you get into an accident with a leased car.

What Happens If I Get Into an Accident With a Leased Car?

If you have been involved in an accident on the roads of Woodbridge, Calgary, or anywhere else, there are some crucial steps to follow to help you best protect yourself. So, what happens if you get into an accident with a leased car? These should be your priorities:

• Remain at the accident scene and move your car out of the way of traffic only if it is safe to do so.
• Call emergency services.
• Check if you or anyone else at the scene needs medical attention.
• Exchange contact details and insurance and registration information with the other driver. Request the contact details of any witnesses to the accident. Do not admit or discuss fault with anyone.
• Take photos of the damage.
• Seek medical care.
• Report the accident to your car insurer and leasing company.

Do I Still Have to Pay If I Total a Leased Car?

Now, do you still have to pay if you total a leased car? The simple answer is yes; in most cases, you are still responsible for the remainder of your leasing payments, even if your insurance company has determined the car is totaled. What happens if you total a leased car is quite similar to what happens after any type of accident, even one where only minimal damage was sustained. An accident does not negate your payment responsibilities.

With that said, your leasing company likely requires you to carry liability insurance. This coverage should help you cover some of the costs of the remaining payments. But keep in mind that every policy has limits, so you may still be on the hook for part of your payments. If you also carry gap insurance, this will provide even more assistance in covering the remainder of the lease term.

Contact Us Near Toronto to Learn More

You now know what happens if you total a leased car, but if you have remaining questions, just reach out to our team in Woodbridge. And be sure to check out our leasing FAQ for more guidance on the leasing process. We are here to help, no matter where you may be in your vehicle leasing journey.