What Happens if You Total a Leased Car in Oklahoma?

Posted on 02/28/24

in Car Accidents

What Happens if You Total a Leased Car in Oklahoma?After a car accident with significant damage to a vehicle, the driver’s insurance company determines whether or not the car or truck has been totaled in the accident. A totaled car isn’t safe to drive until repaired, but if the cost of the repairs is higher than the value of the vehicle or 65% or more than the vehicle’s value before the crash a repair job isn’t practical. In some cases, the insurer may decide that a vehicle has been totaled even if the cost of the repairs does not quite exceed the limit. This is because mechanics commonly find further damage while making repairs after an accident.

After most car accidents in Oklahoma, the accident victim makes a claim for property damage compensation as well as for medical expenses and lost wages against the insurance company or the party at fault after the accident. However, what happens if a leased vehicle is totaled after an accident?

What to Do After an Accident With a Leased Car in Oklahoma

Accidents are traumatic and terrifying, especially ones that are bad enough to total a car and cause significant or serious injuries. It may be difficult to keep a cool head in the aftermath of an accident, but by remaining calm and deliberate, you can protect yourself physically and financially. By taking specific steps, you not only increase your chances of prompt emergency care for your injuries but also of achieving the most possible compensation for damages. After an accident:

  • First, move to a safe location out of traffic or remain in place and use your phone to report the accident and call for help if you are too seriously injured to move safely
  • Use your phone or hand it to an uninjured person to use for you and take photos of the damaged vehicles, the accident scene, and your visible injuries
  • Add the contact information of the other driver and any eyewitnesses

Always go to a hospital after a car accident and have a thorough examination as well as treatment for your obvious injuries. Ask for a detailed medical report.

Always report the accident to the lease company and your insurance company. It’s also a good idea to hire an Oklahoma City car accident lawyer, especially if you’ve suffered injuries in an accident that requires medical care and keeps you from a prompt return to work.

Do I Still Have to Pay for a Leased Car That’s Totaled?

After an accident with a leased car, your insurance or the insurance of an at-fault driver only pays for the fair market value of the car using common methods for the assessment. In most cases, the accident victim has to pay for the remainder of the lease according to the terms of the agreement. Insurance does not cover the remaining amount of a lease. Only if you have purchased gap insurance coverage will insurance cover the remainder. For drivers who carry only the minimum liability insurance coverage required by Oklahoma, this may not be enough coverage to pay the remainder of the lease.

Between 20% and 30% of vehicles in Oklahoma are leased. Acquiring gap insurance coverage for a leased vehicle is a good way to protect yourself from paying for the remainder of a lease agreement for a totaled car you cannot drive.