What Happens If You Crash a Leased Car in Nevada?

Your Las Vegas & Nevada Guide to Car Accidents in a Leased Car

Leased vehicles account for over 30% of registered vehicles in Nevada, significantly concentrated around the Las Vegas area. Below is general guidance on the legal and financial implications specific to leased vehicles following an accident. It is not intended as legal advice. 

If you need an experienced car accident and personal injury attorney to help you with your leases car accident claim, please call SJW for a free consultation. We are here to help! Call us today at (702) 291-8007 or email us for a free consultation.

Need to Know: Who Pays Repair Costs If You Crash a Leased Car in Nevada?

Here’s what you need to know: In Nevada leased vehicle accidents, the at fault party typically pays to repair damages on a leased car. Since Nevada follows a pure comparative negligence system, you can still receive compensation from the other party for their portion of the fault, even if you share some responsibility for the accident.

If you caused the collision through negligence – speeding, texting, etc. – you bear fault, and your insurer pays claims from your policy up to its limits. For high damages, they may exceed limits, leaving you responsible for the remainder.

If the other party is negligent this makes them liable, so their insurer pays your collision and any injury/damage claims against them. You avoid fines from the leasing company since the accident wasn’t your fault.

Now let’s review the steps to take immediately after your leased car accident. 

What Should I Do If I am in a Leased Car Accident in Nevada?

Knowing the immediate steps to take after an accident involving a leased car is important for legal and insurance purposes. Here are the two key steps to take in the immediate aftermath of a Nevada leased car accident:

1. Call 911 to report the accident and seek medical care: For any injuries, get medical attention promptly and keep records of all treatments.
   
2. Document Evidence: Take photos of all vehicles and the accident scene from multiple angles.
3. Reach out to your insurance company to initiate a claim.
4. Contact your lease company about the accident.

Do I Need to Have Insurance for a Leased Vehicle in Nevada?

Yes! You are required to have insurance for your leased vehicle in Nevada and must maintain full coverage for the entire lease term, just as if the car were financed. If your insurance lapses, you will be fully responsible for any damages or injuries resulting from an accident. We go into greater detail on coverage requirements further down this article.

What Does My Insurance Company Need After a NV Leased Car Accident?

• Provide required information but don’t admit fault.
  
• Take photos of injuries, vehicle damage, and the scene: Visual evidence can be crucial for your insurance claim, especially in the context of a rental car crash.
  
• Get estimates for repairs: This will be necessary for the insurance claim process.
  

It’s usually best to report the incident quickly to get your repairs underway and avoid lease violation fees. However, discuss your options with counsel first if injuries are involved or fault appears questionable.

Who Determines Fault in a Nevada Leased Vehicle Accident?

Police reports, witness statements, photographic evidence from the accident scene, and traffic citations help establish fault and liability in an accident. This impacts the claims and settlement process.

All accidents involve an investigation to establish:

• Whether a traffic violation occurred and the Las Vegas Metropolitan Police were involved
  
• Which party was speeding, distracted, intoxicated, etc?
  
• If any mechanical failures contributed
  

Police usually make an initial fault determination for their records, which can differ from what insurance ultimately decides. Who was at fault for the accident and how much, is important as it can have a serious impact on a parties ability to receive compensation and how much. More specifically, Nevada’s comparative negligence laws may adjust financial liability based on the degree of fault. 

• Liability towards the leasing company: The lessee (driver) is generally responsible for paying for repairs and continuing monthly payments while the car is in the shop, or might need to rent a car during this period. Exceptions may apply in certain no-fault states.
• Liability towards third parties: Injury or damage claims from third parties involved in a car accident would be covered under the at-fault driver’s liability insurance, subject to policy limits.

A preliminary fault determination is often based on police reports, eyewitness accounts, and physical evidence. Importantly, any such preliminary determination of fault is not in any way binding on a judge or jury, should the matter proceed to court.

• Police report: Officers investigating the scene of a Nevada car accident determine fault based on factors like traffic violations committed, impairment or distractions, weather conditions, etc. This is documented in their official report, often critical when you’re involved in an accident.
  
• Eyewitness accounts: Independent third-party witnesses provide statements on their observation of accident details, which may help establish fault if disputed or unclear based on other evidence.
  
• Physical evidence, such as skid marks, the location of the impact, the extent of vehicle damage, etc., often also impacts the fault determination.
  
• Comparative negligence laws and how fault in the accident is determined: The assigned fault percentage determines financial liability, even if multiple parties are partially at fault.

Do I Need a Nevada Car Accident Lawyer for My Leased Vehicle Accident?

Consulting with an experienced Las Vegas car accident lawyer near you is advisable, especially if the accident involves significant damages, injuries, or complex liability issues.

An attorney can negotiate insurance settlements accounting for categories like medical bills, lost wages, and pain and suffering damages.

IMPORTANT NOTE:

• Understand statutes of limitation – in Nevada, personal injury claims must be filed within 2 years; property damage must be filed within 3 years.

If you need help navigating a car accident involving a leased car call us at (702) 291-8007 or email us today for a free consultation.

Dealing with Your Leasing Companies and Repairs in NV

Obligations When Returning a Damaged Lease

Review all wear and tear guidelines to avoid excess damage and cleaning charges from the leasing company. Address all collision repairs beforehand, or they’ll overcharge you.

Insurance Coverage Requirements for Leased Cars in and Las Vegas and Nevada

Nevada requires minimum liability coverage, but leasing companies often impose additional insurance requirements to protect their asset (the vehicle) :

Required Insurance Coverage

• Liability – Bodily injury and property damage, frequently involving the driver’s insurance.
  
• Collision – Damage to the leased vehicle
  
• Comprehensive – Theft, vandalism, weather, fire damage
  
• Gap – Covers the “gap” between vehicle value and loan balance
  

Nevada State Minimum Liability Coverage

As of July 2018, Nevada requires the following minimum liability insurance for leased vehicles, emphasizing the need for comprehensive coverage, especially in cases of a car accident in Nevada.

• $25,000 bodily injury per person
  
• $50,000 bodily injury per accident
• $20,000 Property damage per auto accident

Additional Coverage Requirements

Lease agreements and contracts with rental car companies often stipulate insurance coverage that goes beyond state minimums. These include:

Collision and Comprehensive Coverage

• Collision Coverage: Pays for damage to your leased car from accidents, regardless of fault.
  
• Comprehensive Coverage: Covers damage from theft, vandalism, weather, animals, and other non-collision incidents.

Higher Liability Limits in Auto Accident Cases

• Leasing companies may require liability coverage of at least $100,000 per person and $300,000 per accident, significantly above Nevada’s minimum insurance requirements, especially if you’re in Las Vegas where incidents might necessitate higher coverage.
  
• Property damage coverage may also need to be $50,000 or more.

Lower Deductibles

• Deductibles for collision and comprehensive coverage are often limited to $500-$1,000, lower than the typical deductible, leading to higher premiums, a situation common in Las Vegas due to its high rate of car rentals and accidents.

Gap Insurance

• Covers the difference between the insurance payout if the car is totaled and what you still owe on the lease, a crucial aspect of gap coverage.

What Happens If You Total a Leased Car in Nevada?

Here’s what you need to know: If you total a leased car in Nevada, several important steps and considerations come into play. These are:

1. As Above, Notify Your Insurer and the Leasing Company: As soon as the accident occurs, you need to notify both your insurance provider and the leasing company about the incident.
2. Insurance Coverage: Depending on your insurance policy, the insurance company will typically cover the actual cash value (ACV) of the car, minus any deductible. This value may be less than what you still owe on the lease.
3. Gap Insurance: If you have gap insurance, it can cover the difference between what your insurance pays (the ACV) and what you owe on the lease. This is especially important, as many leased vehicles depreciate quickly, and you might owe more than the car’s worth.
4. Lease Termination: Once the insurance claim is settled, the leasing company will usually terminate the lease. They will apply the insurance payout toward the remaining balance on the lease.
5. Potential Additional Fees: Be aware that you may incur additional fees, such as a disposition fee or penalties for any damage beyond normal wear and tear, depending on the terms of your lease agreement.
6. New Lease or Purchase: After resolving the total loss of the leased vehicle, you’ll have the option to lease a new car or purchase a different vehicle, depending on your needs.

It’s crucial to review your lease agreement and insurance policy to understand your specific responsibilities and coverage in the event of a total loss.

Nevada Leased Car Best Practices

Being involved in a leased vehicle accident can be extremely stressful. Protect yourself by taking these key steps:

Accidents involving leased vehicles require careful navigation of insurance claims, legal considerations, and leasing company policies. You can effectively manage the aftermath by taking immediate and informed actions post-accident, cooperating with all parties involved, and seeking professional advice when necessary. 

How Can SJW Car Accident & Injury Attorneys Help With My Car Accident in a Leased Car?

Our experienced team of Las Vegas car accident and personal injury lawyers at SJW Injury Law offer FREE case evaluations and legal consultations to injury victims in Nevada. 

To learn more about your rights and options after an accident, call us at (702) 291-8007 or email us today. See our proven results and get started on getting the compensation you deserve.