WGK Personal Injury Lawyers | April 25, 2025 | Car Accidents
Leasing a car can be a convenient option for many drivers in Maryland. It offers lower monthly payments, a brand-new car every few years, and the benefit of always having a vehicle that is under warranty. However, when an accident happens while you drive a leased car, the situation becomes more complicated. Understanding the impact of an accident on a leased vehicle can help protect your rights and financial interests.
Accidents Involving Leased Cars in Maryland
When you lease a car, you enter into a rental agreement with the leasing company. The agreement typically lasts two or three years. During this time, you are required to make monthly payments and return the car at the end of the lease term. The leasing company owns the car. They hold certain rights over the car, but you are responsible for keeping it in good condition. This includes paying for insurance and maintaining the vehicle.
If you are involved in an accident while driving a leased car, it’s essential to follow the procedures set by your lease agreement and Maryland law. One of the first things you need to do after an accident is to report it to your insurance company and the leasing company. It is critical to inform both parties as soon as possible.
Do You Need Insurance for a Leased Car?
Yes. It is mandatory to have car insurance when leasing a vehicle in Maryland. In fact, most leasing companies require you to have comprehensive and collision insurance as part of the lease agreement. These insurance types protect both you and the leasing company in case of an accident.
- Comprehensive Insurance: This covers damages to the car that occur due to causes other than a collision, such as theft, vandalism, fire, or natural disasters.
- Collision Insurance: This covers the cost of repairs or replacement if the car is damaged in a collision, even if the accident was your fault.
Not only is driving without insurance dangerous, but if you are caught doing so, you face fines, penalties, and additional points on your driving record. Your insurance coverage is essential. It protects you from legal problems and your financial interests in the event of a crash.
Do I Have to Report an Accident in My Leased Car?
Yes. Reporting an accident is a requirement, both for your insurance company and the leasing company. If the accident results in damage to the leased vehicle, your insurance company will handle the claim. However, if the vehicle is totaled, it will need to be reported to the leasing company immediately.
How Will a Lease Affect My Lawsuit if I Was Involved in an Accident?
If you are injured in an accident while driving a leased car, you are still entitled to pursue a personal injury claim against the at-fault driver. However, the main difference when dealing with a leased car is how property damage is handled. Under such circumstances, a claim for property damage will be handled through the leasing company’s insurance.
You will still have the right to seek compensation for your economic and non-economic damages. This can include your medical expenses, lost wages, emotional distress, and pain and suffering. You may also need to deal with the leasing company to recover compensation for the damaged vehicle.
Contact the Baltimore Car Accident Law Firm of WGK Personal Injury Lawyers Today For Help
For more information contact the Baltimore car accident law firm of WGK Personal Injury Lawyers to schedule a free initial consultation.
WGK Personal Injury Lawyers
14 W Madison St, Baltimore, MD 21201, United States
(410) 837-2144
WGK Personal Injury Lawyers – Dundalk Office
7329 Holabird Ave Suite 3, Dundalk, MD 21222
By appointment only
(410) 970-3080