First, never panic-sell your belongings. Call a lawyer who specializes in auto finance or bankruptcy. Many offer free consultations, and they can negotiate a payment plan or even a settlement for less than the full amount. Yes, it’s awkward, but it’s better than ignoring the calls.
What Happens If You Crash a Leased Car? Full Driver’s Guide
Second, know your state’s minimum insurance requirements. In Virginia, for example, you can pay an uninsured motorist fee to the DMV, but it won’t cover crash damage. In California, you must have liability insurance by law. Check your lease contract—most require $100,000 per person and $300,000 per accident in bodily injury liability.
Third, if you’re reading this before a crash, buy insurance today. Seriously, put down your phone and call Geico, Progressive, or a local broker. It’s cheaper than a single month of lease payments without coverage. A friend once told me, “Insurance is like a seatbelt—you don’t think you need it until you’re flying through the windshield.” She’s not wrong.
The “I Can’t Afford Insurance” Myth
Many people skip insurance because they think it’s too expensive. But consider this: the average full-coverage policy costs about $1,700 per year. Crash a leased car without insurance, and you’re looking at $35,000 in debt. That’s 20 years of premium payments. Which sounds more expensive now?
Also, some insurers offer “pay-per-mile” plans or low-mileage discounts for leased cars (since you’re limited to 10,000–15,000 miles a year). Shop around—you might find a plan for under $100 a month. That’s less than your streaming subscription and takeout habit combined.
