The financial implications of car accidents can be extremely stressful, sometimes leaving vehicle owners or lessees in dire financial straits for years afterwards. But this does not have to be the case. If you have had a vehicle totaled while covered by an auto insurance policy in the past five years, you could be entitled to more than you were paid out. Thanks to recent legal decisions, you could be part of class action lawsuit investigation with the lawyers at Shamis & Gentile, P.A.
Damage to a leased car
Vehicles are considered a total loss (totaled) when the cost of repairing the damage exceeds the car’s current market value. The state of Ohio uses the total loss formula (TLF). This is normally set by the carrier or a law that limits the carrier’s exposure to a claim by allowing them to pay the lesser amount between (market value and salvage value mean) and cost of repair.
If your insurance company in Ohio, such as Esurance, Liberty Mutual, or Erie Insurance, for example, covered the car’s value but excluded sales tax and other fees – in other words, you were not reimbursed for your entire loss amount – you should contact the lawyers at Shamis and Gentile immediately to be part of a class action lawsuit investigation.
Car accidents in Ohio
According to the Ohio Department of Transportation, “In 2018, the number of traffic-related deaths decreased by 5% over the prior year. While an improvement, the sad fact remains that we lost 1,035 people in 951 crashes. Although the number of fatal crashes was down, there was a 0.7% increase in the number of injuries.”
What happens to my lease or loan if my car is totaled?
If you total a financed or leased car, there is a chance that you’ll still have an amount left to pay. The insurance company will pay you the value of the car; they do not take depreciation into account. So if you didn’t take out gap cover for this, you should contact the lawyers at Shamis and Gentile and find out how you can benefit from participation in a class action lawsuit.
What if the total loss wasn’t my fault?
If your vehicle has been totaled in an accident that was not your fault, and you still owe on the lease, you must contact the insurance company of the at-fault driver with your lender information. In order to maintain your good credit rating, continue to make your loan or lease payments until the insurance company has paid out.
Total loss claims and actual cash value
As mentioned above, the state of Ohio uses the total loss formula (TLF). This is normally set by the carrier or a law that limits the carrier’s exposure to a claim by allowing them to pay the lesser amount between (market value and salvage value mean) and cost of repair. As you can see, that leaves the vehicle lessee in a vulnerable position. Trying to solve this alone is not easy. You should contact Shamis and Gentile today and get the best legal advice on this matter.
What is the residual value of a leased vehicle?
A car’s residual value is the value of the car at the end of the term of lease. It is also the amount for which you can buy a car at the end of the lease. A residual percentage will be provided when signing the car lease agreement to help you calculate your car’s value at lease end.
What do dealers do with returned leased cars?
Dealers generally resell returned lease cars. Of course, they will not accept a car that still has a lease on it unless they believe they can sell it for a profit.
Can a dealership buy your lease?
The simple answer is “yes!” Dealerships can buy your lease by paying the balance of your lease amount to the leasing company. If the purchase price exceeds the outstanding value, the money can go towards your replacement car.
Contact our lawyers
With offices across the country, the experienced attorneys at Shamis & Gentile, P.A. are dedicated to providing tireless legal representation in every aspect of your leased car accident case in Ohio.
Contact us now to schedule a free evaluation with us.