Leasing a van offers numerous benefits, such as lower monthly payments compared to buying a van, the ability to drive newer models, and avoiding the hassle of selling the vehicle later. However, accidents are an unavoidable aspect of driving.
Crashing a leased van involves a process that can be more complex than if you owned the vehicle outright. Understanding the implications and steps to follow can help mitigate the consequences and ensure a smoother resolution.
Initial steps following an accident
Immediately after an accident, the priority is to ensure that all parties involved are safe. Once safety is confirmed, follow these steps:
Check for injuries and call emergency services
It’s crucial to check for injuries among all parties involved. Call emergency services if there is any doubt about someone’s health. Even minor symptoms can hint at more serious injuries.
Secure the scene
To prevent further accidents and ensure the safety of the road, secure the scene. Use hazard lights, road flares, or warning triangles to alert other drivers.
Exchange information
Exchange contact and insurance details with the other drivers involved, as well as the contact details of any witnesses. It’s also beneficial to take photographs of the accident scene, which can help during the insurance claim process.
Report the accident
In the UK, you must report any road traffic accident that results in injury or property damage to the police within 24 hours. Failure to do so can result in penalties, including fines and points on your licence.
Dealing with your insurance and the leasing company
After addressing immediate concerns at the accident scene, you must contact your insurance provider and the leasing company as soon as possible.
Notify your insurer
Inform your insurance company about the accident. They will guide you through their claims process and discuss what coverages are applicable. You’ll likely need to provide them with the full details of the accident, including any evidence you’ve gathered.
Inform the leasing company
It’s also essential to notify the leasing company about the accident. Leasing agreements typically require that the company is informed of any damage to the vehicle. They can also offer guidance on their policies regarding vehicle repairs and insurance claims.
Understanding insurance coverage
When you lease a van, you’re generally required to have a fully comprehensive insurance policy. This coverage is critical because it needs to protect the leasing company’s interests as well as your own.
Gap insurance
Consider whether you have gap insurance, which covers the difference between what your standard insurance will pay out and the remaining balance you owe on your lease in the event of the van being written off or stolen.
Handling repairs
Repairs must typically be approved by both your insurer and the leasing company. Using approved repair shops ensures the work meets the leasing company’s standards, which is important for maintaining the lease agreement.
Financial implications of the crash
Crashing a leased van can have significant financial implications, depending on the extent of the damage and your insurance coverage.
Excess fees
You will be responsible for paying the excess fee associated with your insurance claim. This amount varies based on your policy details and the nature of the claim.
Charges for excessive wear and tear
At the end of your lease term, the van will be inspected for damages that go beyond normal wear and tear. If the repairs from the accident are not up to the leasing company’s standards, you could face additional charges.
Increased premiums
Following an accident, it’s common for insurance premiums to increase. This will affect the cost of insurance for the remainder of your lease term and possibly beyond, depending on your insurance provider’s policies.
What if the van is a total loss?
In the event that the leased van is deemed a total loss, the insurance company will typically pay out the current market value of the van to the leasing company. If you have gap insurance, it can cover any shortfall between the insurance payout and the remaining balance of your lease.
Preparing for the future
To avoid complications in the future, consider these tips:
- Always adhere to the terms of your lease agreement.
- Maintain a comprehensive insurance policy that includes gap coverage.
- Drive safely to avoid accidents.
Lessons learned from a hard knock
Crashing a leased van can be a stressful experience, but understanding the correct steps to take can alleviate some of that stress. By promptly dealing with the aftermath in line with your lease agreement and insurance policy, you can navigate the situation more effectively. Always ensure that you’re fully covered and aware of your responsibilities to prevent unexpected burdens down the line. With the right preparation and knowledge, you can handle the challenges that come with an accident in a leased vehicle.
Frequently asked questions
What should I do immediately after crashing a leased van?
Immediately after an accident, ensure everyone’s safety, call emergency services if needed, and secure the scene. Exchange contact and insurance information with all involved parties and take photos of the accident scene for evidence. Notify the police within 24 hours to comply with UK law. Subsequently, inform your insurance company and the leasing company about the incident to initiate the claims and repair process.
Am I responsible for repairs after an accident in a leased van?
Yes, as the lessee, you are responsible for arranging repairs after an accident. However, all repairs must be approved by your insurance and the leasing company to ensure they meet the required standards. Use only approved repair shops suggested by your insurer or the leasing company. This compliance helps avoid potential penalties or additional charges at the end of your lease due to improper repairs.
What happens if the leased van is a total loss after an accident?
If the leased van is declared a total loss, your insurance company will pay the current market value directly to the leasing company. If there’s a difference between the insurance payout and what you owe on the lease, gap insurance (if you have it) will cover this shortfall. Without gap insurance, you might have to pay this difference out of pocket.
How does crashing a leased van affect my insurance premiums?
Crashing a leased van will likely increase your insurance premiums due to the higher perceived risk by insurers. The extent of the increase depends on the circumstances of the crash, your previous driving history, and your insurer’s policies. Future insurance costs might remain elevated for some time, reflecting the added risk from the accident on your driving profile.
