What if I Have an Accident in a Leased Car?

Leasing a car gives you the ability to trade-in for a newer vehicle at a lower cost than purchasing a brand-new car. One of the biggest concerns about leasing a car is, “what if I have an accident in a leased car?” In this article, we’ll walk through the different considerations.

Call 911

The safety of yourself and everyone involved in the accident are paramount. At this point, it does not matter if the accident is your fault or not, however big or small. It is of utmost importance to obtain a police report in any accident for insurance purposes, especially when wrecking a leased car.

Notify the leasing company and your insurance company

You are obligated under your leasing contract to notify both the leasing company and your insurance company that you have wrecked your leased car.In most cases, you have a few days to notify them of the accident, however it is advisable to notify them as soon as the wreck occurs.

Can the vehicle be repaired or is the vehicle totaled?

What happens when you wreck a leased car regarding the repair of the leased vehicle is very important. If the vehicle can be repaired, and the accident was not your fault, your respective insurance company sues for damages from the other party, and vice versa. Depending on your coverage, the repair will be done at an authorized repair shop of your vehicle brand stated in your lease contract.

If your leased vehicle is totaled, consider the following: 


This is the amount paid by the insurance company to the insured when he/ she incurs losses. Depending on the types of insurance coverage you have (total or partial), the amount obtained goes to the outstanding balance for the leased vehicle.

Gap Insurance

Gap insurance steps in to pay the difference if the insurance company does not fully cover the cost of wrecking a leased car. In most cases, lease contracts require this insurance.


In case of an accident in a leased vehicle, call 911 first, your insurance company second, and your lease company third. Similar to owning your car, owning good insurance is the best way to avoid any unfortunate problems.