Who Pays For Repairs On A Leased Car?

In a typical contract, the obligation for repairs typically falls to the person leasing the car or the vehicle owner. The lease is accountable for maintaining the car and covering the repairs costs, such as mechanical problems or damage. This includes regular maintenance like oil adjustments, tire rotations, and any repairs required due to incidents or wear and wear and tear. Leaseholders need to review the lease agreement to know what their obligations are in relation to repairs.

Are Repairs Covered by Leases?

When it is time to lease a vehicle, there are many who are drawn to the prospect of owning a brand-new car without the commitment to owning it. Leases offer many benefits, including lower monthly costs and the option of driving an updated car every couple of years. One question that comes up among prospective leasees is whether repairs to the vehicle are covered by the lease agreement.we will discuss this issue in-depth and provide comprehension of what repairs are generally addressed in car leases.

Introduction to Car Leasing

Before we get into the details of car leases repairs first, let’s take an introduction to leasing cars. The process of leasing a car involves signing the lease agreement with a leasing firm or dealer, in which you sign a contract to make monthly payments to use a car for the course of a specified period, usually 2 to 4 years. In contrast to buying a car, the lease does not grant you ownership of the car at the end of the lease. Instead, you give it back to the lender under certain conditions and mileage limitations.

The Role of a Lease Agreement

The lease contract is a legal contract that defines the conditions and terms of the lease. It covers many aspects, such as the monthly installments as well as lease term limits on mileage and maintenance obligations. It is important to carefully go through the lease agreement prior to signing it to ensure that you understand the specific terms pertaining to maintenance and repairs.

Manufacturer’s Warranty and Routine Maintenance

In the majority of car leases, the warranty provided by the manufacturer applies to the lease. The warranty generally will cover repairs for electrical or mechanical defects that result from defective workmanship or components. It is crucial to keep in mind that warranties don’t protect against damages that result from accidents or negligence, as well as normal wear and wear and tear. Regular maintenance, like oil changes, tire rotations, and filter replacements, is typically the responsibility of the person leasing.

Understanding Wear and Tear

Wear and tear refers to a phrase commonly employed in lease agreements to describe the expected deterioration of a car over time. While a little damages are usually acceptable, damage that is excessive could cause additional costs at the conclusion of the lease. It’s important to familiarize yourself with the rules of the lender regarding appropriate wear and tear as laid out in the agreement for lease. This will let you know the types of repairs you’ll be accountable for at the expiration of the lease.

Optional Lease Protection Plans

Some leasing companies provide optional lease protection plans, which provide extra protection for maintenance and repairs. These plans can be beneficial because they provide peace of mind and security against the cost of unexpected repairs. It is important to read all the conditions and terms of this plan because they could have limitations, deductibles, and exclusions.

Negotiating Lease Terms

If you are signing a lease agreement, it is worth negotiation of certain terms, like the repair or maintenance. Depending on the terms of the lease and your negotiation abilities, you might be able to negotiate provisions that will cover specific repairs or decrease the financial burden for repairs. It is always recommended to discuss these options with the dealership or lessor prior to signing the lease contract.

If a Leased Vehicle Fails, Who Is Responsible for the Repair?

Car leasing has become a preferred option for a lot of people due to its low cost and flexibility. One issue that is often raised by leaseholders is who is accountable for the repairs if a leased vehicle fails to function. This aims to clarify this issue and also examine the various situations that can be faced when a car leased has mechanical problems.

Warranty Coverage

If you lease a vehicle typically, it includes a manufacturer’s guarantee, which will cover repairs for a certain time or miles. The length and duration of the warranty will vary dependent on the car and lease agreement. In the majority of cases, when a vehicle fails to function during the warranty time, the dealership or manufacturer is responsible for the costs of repairs. This covers both the parts and labor needed to repair the vehicle.

Routine Maintenance and Wear and Tear

While the warranty can be able to cover certain mechanical issues, however, it does not usually cover routine maintenance or repairs that result from wear and wear and tear. The leaseholder is generally responsible for maintaining the vehicle according to the manufacturer’s suggested schedule. This includes the rotation of tires, oil changes as well as other routine servicing tasks. Furthermore, any damage resulting from negligence or mishandling, for example, accidents or driving over potholes, could be the charge of the owner of the lease to fix.

Roadside Assistance and Extended Warranties

In lease agreements with certain terms, roadside assistance may be provided. The service typically includes emergency situations like low batteries, flat tires, or lockouts. If the car you lease fails to start because of one of these circumstances, the leasing company and/or the manufacturer’s assistance programs might offer the assistance you require. It is important to read the lease agreement to be aware of the specific conditions for roadside assistance.

In addition, certain lease agreements could also allow the purchase of extended warranties or other coverage plans. These packages may provide additional protection against mechanical breakdowns or repairs that be beyond the normal warranty. If you’ve chosen this kind of protection, the obligation to repair the damage in the event of a breakdown will likely fall to the warranty provider.

Lease-End Responsibilities

After the lease expires, leaseholders are generally accountable for returning the car in good working order, taking into account normal wear and tear. Damages or wear above what is normal could result in additional charges. If an automobile you lease is damaged within a short time before the lease’s expiration date, it is recommended to call the leasing company or dealer to learn about the specific rules regarding repairs and lease return conditions.

Communications between the Leasing Company

Whatever the reason that leads to breakdowns, it’s important to inform the leasing firm or dealer promptly. They will guide you through the steps needed to resolve the issue and give you instructions on the best place to take your vehicle to be repaired. Prompt communication will ensure that you follow the proper procedure and adhere to the lease agreement.

Lease Insurance and Gap Coverage

In certain instances, leaseholders could have purchased lease insurance or gap coverage that provides additional protection from certain risks. Lease insurance can be able to cover the cost of repairs that are caused by mechanical problems, and gap coverage can cover the gap between the balance of the lease or the amount of insurance paid in the event of a complete loss. The types of coverages available can vary, which is why it’s essential to read the conditions and terms of your policy to determine whether and how they relate to repairs and breakdowns.

Do I Have the Right to Return a Car Leased in the Event of Problems

If you are leasing a vehicle, it is important to be aware of what rights are available to you and the options if the car encounters issues throughout the lease. Although leases usually include warranty protection, there may be issues which affect the car’s performance and safety or general satisfaction. In these instances, returning the vehicle that was leased could be a possibility. The explores the possibilities of returning the car leased in the event of a problem and gives details on the many factors to take into consideration before making a final decision.

Understanding Lease Agreements and Warranty Coverage

When returning a leased car, it is important to go through your lease contract and be aware of the conditions. Typically, lease agreements define the responsibility of the lease, including repairs, maintenance as well as any restrictions on the return of the car. In addition, warranties provided by the manufacturer typically include repairs that are covered during the lease period. It is crucial to understand the scope and duration of the warranty’s coverage in order to be able to assess your options in a precise manner.

Documenting and Reporting the Problems

If you experience issues with the car you lease, It is vital to record and report the issues immediately. Keep detailed notes of the issues, including dates, descriptions, as well as any relevant images or videos. Contact the leasing firm or dealership to notify them of the problems you’re experiencing and supply them with the required documents. Making the report promptly can strengthen your chances of obtaining recourse or a refund.

Seeking Repairs and Resolution

If you are considering returning the vehicle you have leased, it is best to provide the dealership or manufacturer the chance to fix and address the issues. Inform them of the issue and request they repair the car. The warranty’s coverage should usually include repairs for manufacturing or mechanical defects. Make an appointment with a licensed repair center and ensure that the issues are taken care of. Keeping track of the repairs you have attempted is essential because they provide proof of your efforts in resolving the issue.

Evaluating Lemon Laws and Consumer Protections

In certain situations, if the problem persists even with reasonable repairs and you are not protected by consumer protection laws or lemon law statutes. Lemon laws are different by region. However, they generally offer remedies for vehicles that are defective. They generally define”a “lemon” as a vehicle with major problems that are not repaired within a reasonable amount of repairs. Learn about the laws governing lemons that are applicable to your area to determine whether they are applicable to your specific situation.

Consultation With an Attorney

If you’re thinking of returning a car you leased due to ongoing problems, you may want to speak with an attorney that specializes in consumer protection and automotive law. They can offer valuable advice on your rights and choices and help you understand the complexities of lease agreements, warranties, leases, and other applicable laws. An attorney can look over your case, determine whether it is feasible to return the vehicle, and then advise you on the most appropriate method of proceeding.

Exploring Lease Termination or Negotiation

The return of a car leased because of issues could require negotiation with the dealership or the company leasing it. Based on the seriousness of the issue and the length of the lease, they might be willing to end the lease earlier or suggest alternatives. Be prepared to talk about your concerns with them, as well as provide documentation to back it up and offer a mutually agreed-upon solution. Remember that any negotiations could result in fees and penalties or the financial ramifications. An attorney’s consultation can give you valuable insight throughout the procedure.

Do I Have the Option of Trading in an Unleased Vehicle?

Leasing a car has been an increasingly popular choice for people due to its flexibility and cost-effectiveness. However, the circumstances may alter, and you may decide to sell your car that you lease before the lease is over. However, is it feasible to exchange a lease vehicle? We’ll explore the subject and look into your options with regard to negotiating a lease vehicle.

Understanding Lease Contracts

If you are considering selling the vehicle you lease, it’s important to understand the nuances of lease agreements. When you lease a car, you enter an agreement to contract in conjunction with the lease company. Usually, these agreements specify the length of the lease ,typically ranges from between 24 and 48 months, and set out specific terms and clauses with the lease, such as mileage limitations as well as wear-and-tear guidelines as well early end-of-term penalties.

Reviewing Lease Agreement Terms

If you are considering selling your vehicle, the first step is to go over your lease agreement. Take note of the clauses that outline the options for early termination, trade-ins as well as the associated charges. It is crucial to know the costs and obligations that come with terminating the lease early.

Check the Vehicle’s Equity

A key element that is a major factor when trading a car that is leased is the equity status of the car. Equity is the gap between the car’s market value and the remaining balance of the lease. If the value of the car is greater than the remaining balance on the lease and is positive, it means that the equity is positive, which makes it easy to trade in the vehicle. If the vehicle’s value is less than the remaining balance on the lease, negative equity is in place, which makes it difficult to sell the car.

Contact the Leasing Company

After you’ve got a good understanding of your lease contract and have assessed the equity of the car, then it’s time to get in touch with your leasing firm. Contact their customer service department or leasing department to inquire about the procedure for selling a car that you lease. They’ll give you specific information about their procedures, policies as well as any costs associated with the process.

Explore Lease Transfer Options

If selling the vehicle that is leased directly isn’t easy, Another option is to transfer the lease to another person. A lot of leasing companies permit lease transfers that involve the search for a person who is interested in taking over the remainder of the lease and taking over the lease payments. Lease transfer platforms are online, connecting people who are looking to end their lease to prospective lease buyers.

Evaluate Other Alternatives

In certain situations, the option of trading in a leased car might not be the best alternative, especially in the event of negative equity or penalties for early termination. Consider other options like negotiations on behalf of the company leasing the vehicle to lengthen and adjust the mileage limit and evaluating leasing buyout options. If you look at these options and options, you may discover a better solution that fits your current circumstances.

FAQ’s

Who is responsible for repairs on a leased car?

Typically, the lessee (the person leasing the car) is responsible for repairs on a leased car. This includes routine maintenance and repairs that are not covered by the manufacturer’s warranty.

What repairs are covered under the manufacturer’s warranty?

The specific coverage under the manufacturer’s warranty can vary, but it generally includes repairs for defects in materials or workmanship. This coverage typically lasts for a certain period or mileage, such as 3 years/36,000 miles.

Can I purchase additional warranty coverage for a leased car?

Yes, it’s possible to purchase extended warranty coverage or a separate vehicle service contract for a leased car. This can provide additional coverage for repairs beyond the manufacturer’s warranty. It’s important to review the terms and conditions of the extended warranty or service contract before purchasing.

Are routine maintenance expenses covered in a lease agreement?

Routine maintenance expenses, such as oil changes, tire rotations, and filter replacements, are typically the responsibility of the lessee. These expenses are not usually covered by the lease agreement unless specified otherwise.

What happens if the leased car needs major repairs?

If the leased car requires major repairs that are not covered under the manufacturer’s warranty, the lessee is generally responsible for the cost. It’s important to report any significant repairs needed to the leasing company and follow their instructions regarding repair procedures and payment.

Should I consider gap insurance for a leased car?

Gap insurance is recommended for leased cars. It covers the difference between the remaining lease balance and the actual cash value of the car if it is totaled or stolen. This can protect you from financial loss if your leased car is declared a total loss by the insurance company.

Who Pays For Repairs On A Leased Car?

In a typical contract, the obligation for repairs typically falls to the person leasing the car or the vehicle owner. The lease is accountable for maintaining the car and covering the repairs costs, such as mechanical problems or damage. This includes regular maintenance like oil adjustments, tire rotations, and any repairs required due to incidents or wear and wear and tear. Leaseholders need to review the lease agreement to know what their obligations are in relation to repairs.

Are Repairs Covered by Leases?

When it is time to lease a vehicle, there are many who are drawn to the prospect of owning a brand-new car without the commitment to owning it. Leases offer many benefits, including lower monthly costs and the option of driving an updated car every couple of years. One question that comes up among prospective leasees is whether repairs to the vehicle are covered by the lease agreement.we will discuss this issue in-depth and provide comprehension of what repairs are generally addressed in car leases.

Introduction to Car Leasing

Before we get into the details of car leases repairs first, let’s take an introduction to leasing cars. The process of leasing a car involves signing the lease agreement with a leasing firm or dealer, in which you sign a contract to make monthly payments to use a car for the course of a specified period, usually 2 to 4 years. In contrast to buying a car, the lease does not grant you ownership of the car at the end of the lease. Instead, you give it back to the lender under certain conditions and mileage limitations.

The Role of a Lease Agreement

The lease contract is a legal contract that defines the conditions and terms of the lease. It covers many aspects, such as the monthly installments as well as lease term limits on mileage and maintenance obligations. It is important to carefully go through the lease agreement prior to signing it to ensure that you understand the specific terms pertaining to maintenance and repairs.

Manufacturer’s Warranty and Routine Maintenance

In the majority of car leases, the warranty provided by the manufacturer applies to the lease. The warranty generally will cover repairs for electrical or mechanical defects that result from defective workmanship or components. It is crucial to keep in mind that warranties don’t protect against damages that result from accidents or negligence, as well as normal wear and wear and tear. Regular maintenance, like oil changes, tire rotations, and filter replacements, is typically the responsibility of the person leasing.

Understanding Wear and Tear

Wear and tear refers to a phrase commonly employed in lease agreements to describe the expected deterioration of a car over time. While a little damages are usually acceptable, damage that is excessive could cause additional costs at the conclusion of the lease. It’s important to familiarize yourself with the rules of the lender regarding appropriate wear and tear as laid out in the agreement for lease. This will let you know the types of repairs you’ll be accountable for at the expiration of the lease.

Optional Lease Protection Plans

Some leasing companies provide optional lease protection plans, which provide extra protection for maintenance and repairs. These plans can be beneficial because they provide peace of mind and security against the cost of unexpected repairs. It is important to read all the conditions and terms of this plan because they could have limitations, deductibles, and exclusions.

Negotiating Lease Terms

If you are signing a lease agreement, it is worth negotiation of certain terms, like the repair or maintenance. Depending on the terms of the lease and your negotiation abilities, you might be able to negotiate provisions that will cover specific repairs or decrease the financial burden for repairs. It is always recommended to discuss these options with the dealership or lessor prior to signing the lease contract.

If a Leased Vehicle Fails, Who Is Responsible for the Repair?

Car leasing has become a preferred option for a lot of people due to its low cost and flexibility. One issue that is often raised by leaseholders is who is accountable for the repairs if a leased vehicle fails to function. This aims to clarify this issue and also examine the various situations that can be faced when a car leased has mechanical problems.

Warranty Coverage

If you lease a vehicle typically, it includes a manufacturer’s guarantee, which will cover repairs for a certain time or miles. The length and duration of the warranty will vary dependent on the car and lease agreement. In the majority of cases, when a vehicle fails to function during the warranty time, the dealership or manufacturer is responsible for the costs of repairs. This covers both the parts and labor needed to repair the vehicle.

Routine Maintenance and Wear and Tear

While the warranty can be able to cover certain mechanical issues, however, it does not usually cover routine maintenance or repairs that result from wear and wear and tear. The leaseholder is generally responsible for maintaining the vehicle according to the manufacturer’s suggested schedule. This includes the rotation of tires, oil changes as well as other routine servicing tasks. Furthermore, any damage resulting from negligence or mishandling, for example, accidents or driving over potholes, could be the charge of the owner of the lease to fix.

Roadside Assistance and Extended Warranties

In lease agreements with certain terms, roadside assistance may be provided. The service typically includes emergency situations like low batteries, flat tires, or lockouts. If the car you lease fails to start because of one of these circumstances, the leasing company and/or the manufacturer’s assistance programs might offer the assistance you require. It is important to read the lease agreement to be aware of the specific conditions for roadside assistance.

In addition, certain lease agreements could also allow the purchase of extended warranties or other coverage plans. These packages may provide additional protection against mechanical breakdowns or repairs that be beyond the normal warranty. If you’ve chosen this kind of protection, the obligation to repair the damage in the event of a breakdown will likely fall to the warranty provider.

Lease-End Responsibilities

After the lease expires, leaseholders are generally accountable for returning the car in good working order, taking into account normal wear and tear. Damages or wear above what is normal could result in additional charges. If an automobile you lease is damaged within a short time before the lease’s expiration date, it is recommended to call the leasing company or dealer to learn about the specific rules regarding repairs and lease return conditions.

Communications between the Leasing Company

Whatever the reason that leads to breakdowns, it’s important to inform the leasing firm or dealer promptly. They will guide you through the steps needed to resolve the issue and give you instructions on the best place to take your vehicle to be repaired. Prompt communication will ensure that you follow the proper procedure and adhere to the lease agreement.

Lease Insurance and Gap Coverage

In certain instances, leaseholders could have purchased lease insurance or gap coverage that provides additional protection from certain risks. Lease insurance can be able to cover the cost of repairs that are caused by mechanical problems, and gap coverage can cover the gap between the balance of the lease or the amount of insurance paid in the event of a complete loss. The types of coverages available can vary, which is why it’s essential to read the conditions and terms of your policy to determine whether and how they relate to repairs and breakdowns.

Do I Have the Right to Return a Car Leased in the Event of Problems

If you are leasing a vehicle, it is important to be aware of what rights are available to you and the options if the car encounters issues throughout the lease. Although leases usually include warranty protection, there may be issues which affect the car’s performance and safety or general satisfaction. In these instances, returning the vehicle that was leased could be a possibility. The explores the possibilities of returning the car leased in the event of a problem and gives details on the many factors to take into consideration before making a final decision.

Understanding Lease Agreements and Warranty Coverage

When returning a leased car, it is important to go through your lease contract and be aware of the conditions. Typically, lease agreements define the responsibility of the lease, including repairs, maintenance as well as any restrictions on the return of the car. In addition, warranties provided by the manufacturer typically include repairs that are covered during the lease period. It is crucial to understand the scope and duration of the warranty’s coverage in order to be able to assess your options in a precise manner.

Documenting and Reporting the Problems

If you experience issues with the car you lease, It is vital to record and report the issues immediately. Keep detailed notes of the issues, including dates, descriptions, as well as any relevant images or videos. Contact the leasing firm or dealership to notify them of the problems you’re experiencing and supply them with the required documents. Making the report promptly can strengthen your chances of obtaining recourse or a refund.

Seeking Repairs and Resolution

If you are considering returning the vehicle you have leased, it is best to provide the dealership or manufacturer the chance to fix and address the issues. Inform them of the issue and request they repair the car. The warranty’s coverage should usually include repairs for manufacturing or mechanical defects. Make an appointment with a licensed repair center and ensure that the issues are taken care of. Keeping track of the repairs you have attempted is essential because they provide proof of your efforts in resolving the issue.

Evaluating Lemon Laws and Consumer Protections

In certain situations, if the problem persists even with reasonable repairs and you are not protected by consumer protection laws or lemon law statutes. Lemon laws are different by region. However, they generally offer remedies for vehicles that are defective. They generally define”a “lemon” as a vehicle with major problems that are not repaired within a reasonable amount of repairs. Learn about the laws governing lemons that are applicable to your area to determine whether they are applicable to your specific situation.

Consultation With an Attorney

If you’re thinking of returning a car you leased due to ongoing problems, you may want to speak with an attorney that specializes in consumer protection and automotive law. They can offer valuable advice on your rights and choices and help you understand the complexities of lease agreements, warranties, leases, and other applicable laws. An attorney can look over your case, determine whether it is feasible to return the vehicle, and then advise you on the most appropriate method of proceeding.

Exploring Lease Termination or Negotiation

The return of a car leased because of issues could require negotiation with the dealership or the company leasing it. Based on the seriousness of the issue and the length of the lease, they might be willing to end the lease earlier or suggest alternatives. Be prepared to talk about your concerns with them, as well as provide documentation to back it up and offer a mutually agreed-upon solution. Remember that any negotiations could result in fees and penalties or the financial ramifications. An attorney’s consultation can give you valuable insight throughout the procedure.

Do I Have the Option of Trading in an Unleased Vehicle?

Leasing a car has been an increasingly popular choice for people due to its flexibility and cost-effectiveness. However, the circumstances may alter, and you may decide to sell your car that you lease before the lease is over. However, is it feasible to exchange a lease vehicle? We’ll explore the subject and look into your options with regard to negotiating a lease vehicle.

Understanding Lease Contracts

If you are considering selling the vehicle you lease, it’s important to understand the nuances of lease agreements. When you lease a car, you enter an agreement to contract in conjunction with the lease company. Usually, these agreements specify the length of the lease ,typically ranges from between 24 and 48 months, and set out specific terms and clauses with the lease, such as mileage limitations as well as wear-and-tear guidelines as well early end-of-term penalties.

Reviewing Lease Agreement Terms

If you are considering selling your vehicle, the first step is to go over your lease agreement. Take note of the clauses that outline the options for early termination, trade-ins as well as the associated charges. It is crucial to know the costs and obligations that come with terminating the lease early.

Check the Vehicle’s Equity

A key element that is a major factor when trading a car that is leased is the equity status of the car. Equity is the gap between the car’s market value and the remaining balance of the lease. If the value of the car is greater than the remaining balance on the lease and is positive, it means that the equity is positive, which makes it easy to trade in the vehicle. If the vehicle’s value is less than the remaining balance on the lease, negative equity is in place, which makes it difficult to sell the car.

Contact the Leasing Company

After you’ve got a good understanding of your lease contract and have assessed the equity of the car, then it’s time to get in touch with your leasing firm. Contact their customer service department or leasing department to inquire about the procedure for selling a car that you lease. They’ll give you specific information about their procedures, policies as well as any costs associated with the process.

Explore Lease Transfer Options

If selling the vehicle that is leased directly isn’t easy, Another option is to transfer the lease to another person. A lot of leasing companies permit lease transfers that involve the search for a person who is interested in taking over the remainder of the lease and taking over the lease payments. Lease transfer platforms are online, connecting people who are looking to end their lease to prospective lease buyers.

Evaluate Other Alternatives

In certain situations, the option of trading in a leased car might not be the best alternative, especially in the event of negative equity or penalties for early termination. Consider other options like negotiations on behalf of the company leasing the vehicle to lengthen and adjust the mileage limit and evaluating leasing buyout options. If you look at these options and options, you may discover a better solution that fits your current circumstances.

FAQ’s

Who is responsible for repairs on a leased car?

Typically, the lessee (the person leasing the car) is responsible for repairs on a leased car. This includes routine maintenance and repairs that are not covered by the manufacturer’s warranty.

What repairs are covered under the manufacturer’s warranty?

The specific coverage under the manufacturer’s warranty can vary, but it generally includes repairs for defects in materials or workmanship. This coverage typically lasts for a certain period or mileage, such as 3 years/36,000 miles.

Can I purchase additional warranty coverage for a leased car?

Yes, it’s possible to purchase extended warranty coverage or a separate vehicle service contract for a leased car. This can provide additional coverage for repairs beyond the manufacturer’s warranty. It’s important to review the terms and conditions of the extended warranty or service contract before purchasing.

Are routine maintenance expenses covered in a lease agreement?

Routine maintenance expenses, such as oil changes, tire rotations, and filter replacements, are typically the responsibility of the lessee. These expenses are not usually covered by the lease agreement unless specified otherwise.

What happens if the leased car needs major repairs?

If the leased car requires major repairs that are not covered under the manufacturer’s warranty, the lessee is generally responsible for the cost. It’s important to report any significant repairs needed to the leasing company and follow their instructions regarding repair procedures and payment.

Should I consider gap insurance for a leased car?

Gap insurance is recommended for leased cars. It covers the difference between the remaining lease balance and the actual cash value of the car if it is totaled or stolen. This can protect you from financial loss if your leased car is declared a total loss by the insurance company.