What to Do if You Crash a Leased Car

Find out if you’re getting ripped off on your car insurance in less than two minutes.
No long forms · No spam · No fees
It happens too often. You lease a sparkling new Honda CR-V with all the bells and whistles, and on a rainy day, another driver rear ends you. Leased car accidents come in many shapes and sizes, and they’re never fun.
However, they’re not the end of the world. By keeping a cool head, and contacting your insurance company in a timely manner, leased car accidents can be manageable.
And here at car insurance comparison and broker app Jerry, we’ve compiled everything you need to know about what happens if you crash a leased car.
###widget 8

Stay safe

If you have an accident in a leased car, the most important thing is not to panic. Keeping a clear head during situations like this will definitely help. If you are able, pull your vehicle into a safe place to park, far away from traffic—such as in a parking lot. You never want to exit your vehicle in moving traffic.
Now, gather the other driver’s information, including their name, contact information (including phone and email), driver’s license number, and insurance policy information. If there are witnesses present, get their names and contact information as well.
If you are not able to drive the car to a safe spot, stay in the car and call the local police department. You should immediately dial 911 if anyone is injured. Then wait for help to arrive.

Call your insurance company

After you’ve gathered all necessary information, you should your insurance company to report the accident.
They will ask you all types of questions, including how the accident occurred, details of the cars involved, the other driver’s information, who was at fault, and other pertinent questions. You could even get asked about weather conditions! The more you know about the accident circumstances, the better the insurance company and claims adjuster understand the case.

Call your car lease finance company

Finally, call your car lease finance company. They will help you find an approved car repair company, which will then determine the extent of the damage. They will also investigate if your car can be fixed, or if you’ll need a new car in the case of a total loss. From there, you can sort out the finances of a repair.
It can get tricky to determine the specific about you have to pay, or how much coverage you have. But to find the best deal, try the Jerry app. A licensed broker, Jerry does all the hard work of finding the cheapest quotes from the top name-brand insurance companies and buying new car insurance.

Sort out the consequences

If your vehicle is a total loss, you either have to pay the difference between what you still owe the leasing company on the vehicle and what it’s worth on the market.
However, your lease agreement likely came with gap insurance from the lease company, which means the insurance will cover any difference between what you owe and the market value of the vehicle.
Now we get to the burning question: Will an accident with a leased car raise your insurance rates? The answer is maybe. Just like with a car you own, if you get into an accident in a leased car, your rates may go up. Insurance companies mainly base this decision on if the accident was your fault, repair costs, and your accident history.

Returning a leased car after an accident

If your vehicle can be repaired after an accident, you can keep driving it and return it at the end of the lease. But remember that because the leased vehicle was in an accident, its value may be lower. This is called “diminished value.” If your leased vehicle is totaled, the leasing finance company will take possession of the car, and now it’s time for you to shop for a new vehicle!

Finding the best car insurance for you with Jerry

Regardless of the state of your car, it’s always vital to have appropriate car insurance. For that, try the Jerry app. Jerry is the easiest and most effective way to find a car insurance policy that is customized for you.
After providing you with a comprehensive cross-analysis of the best policies across providers, Jerry will handle the phone calls, paperwork, and renewals for your top pick so that you don’t have to. They even help cancel your old policy! So why do all that extra work when Jerry can do it better?
Haven’t shopped for insurance in the last six months? There might be hundreds $$$ in savings waiting for you.
Judith switched to Progressive
icon savingsSaved $725 annually
Alexander switched to Travelers
icon savingsSaved $834 annually
Annie switched to Nationwide
icon savingsSaved $668 annually

Easiest way to compare and buy car insurance

No long forms
No spam or unwanted phone calls
Quotes from top insurance companies
Find insurance savings — it's 100% free