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Who pays after an accident with a leased car?

In short

Who pays after an accident with a leased car? In Germany, if you are not at fault, the other driver's liability insurer pays. If you caused it, your liability cover pays the other side and your full cover (Vollkasko) pays for the leased car minus the deductible, EUR 500 in one insurer's example. The loss in value goes to the leasing company, loss of use to you.

Who pays after an accident with a leased car?

What it costs

Published amounts for insuring a leased car in Germany, as of October 2026.

ExampleTypical range
Golf, 12,000 km, no-claims class 4, lease up to 36 months, with full cover, one insurer's exampleabout EUR 490 to 1,250 a year
Deductible in the worked exampleEUR 500 full cover, EUR 150 partial cover
Gap between replacement value and amount owed in the exampleEUR 5,300
Accident expert report for a typical claim, paid by the other side if you are not at faultmostly EUR 500 to 800

As of November 2026, from an insurer's guide and expert articles on claims settlement.

The premium range only applies to the example profile.

The amounts in the worked example are a guide value from quoting practice.

What your lease requires for repair and settlement is in its terms.

Worked example

Accident with a leased car that was not your fault

Another driver fails to give way. Your leased car is one year old and spends ten days at the garage.

Repair at the authorised garage, paid by the other sideabout EUR 7,000
Expert report, paid by the other sideabout EUR 700
Loss in value, goes to the leasing companyabout EUR 800
Loss of use for 10 days, goes to youabout EUR 500
Your deductibleEUR 0

The other side pays everything. You get the loss of use, the leasing company the loss in value, the garage the repair. Your no-claims class is untouched. Calculation with guide values.

Three parties, one loss

A leased car belongs to the leasing company. You drive it and insure it. After an accident there are three sides: you as the user, the leasing company as owner, and the other driver with their insurer. Who gets which part of the payment depends on who was at fault and on your lease.

Always tell the leasing company about the accident straight away. Most leases set out where and how repairs are done, and the leasing company approves the repair. Do not have even small damage fixed without checking first.

ItemNot at faultAt faultWho the money goes to
Repair of the leased carother driver's liability insureryour full cover minus deductiblethe garage, as the lease requires
Loss in value after the accidentother driver's liability insurerdepends on own damage terms and the leasethe leasing company
Loss of use or rental carother driver's liability insurernobodyyou
Damage to the other carnot your concernyour liability coverthe other driver
Total loss or theftother insurer up to replacement valueyour full cover up to replacement valuethe leasing company, only GAP closes the gap

Not at fault: the other side pays

If the other driver alone caused the accident, their motor liability insurer pays for the damage. Repair and loss in value belong to the leasing company as owner. In 2019 the Higher Regional Court of Düsseldorf ruled that a lessee cannot claim the loss in value in their own right (case I-1 U 108/18).

In your own right you can claim loss of use or rental car costs, a flat rate for expenses and lawyer's fees before court. The same ruling also counts the higher premium from a lower no-claims class if you had used your own full cover.

At fault: your own policies pay

If you caused the accident, your motor liability insurance pays the other driver's loss. Your full cover pays for the leased car minus the deductible. In one insurer's published example it is EUR 500 for full cover and EUR 150 for partial cover.

Afterwards your no-claims class drops in liability and full cover, as with any other car. Paying small damage yourself to keep your no-claims class only works with a leased car if the leasing company agrees, as the repair must meet its standards.

Cash instead of repair

With your own car you can take the repair cost in cash based on an expert report and skip the repair. With a leased car this normally needs the leasing company. On 29 January 2019 the Federal Court of Justice ruled that a lessee cannot claim notional repair costs without the owner's consent if the lease obliges them to repair and they have not done so (case VI ZR 481/17).

So have the car repaired as the lease requires. Otherwise the leasing company will charge you for unrepaired accident damage when you return the car.

Total loss and theft

If the leased car is destroyed or stolen, the insurer, whether the other side's or your full cover, pays the replacement value. The leasing company, however, asks for the settlement amount from outstanding instalments and residual value, which is often higher in the first years. One insurer's example sets a replacement value of EUR 22,500 against EUR 27,800 still owed.

Only GAP cover pays that gap of EUR 5,300. Without it you pay the difference yourself, even if the accident was not your fault. With some policies full cover does not lower your no-claims class if only the GAP cover pays.

Step by step

  1. Record the accident, take photos, note the other driver's details.
  2. Tell the leasing company straight away and ask about its rules for expert reports and garages.
  3. If you are not at fault, claim from the other driver's liability insurer, with loss of use or a rental car for yourself.
  4. If you are at fault, involve your liability insurer and, for the leased car, your full cover.
  5. For a total loss or theft, request the settlement statement from the leasing company and check your GAP cover.

Checklist

  • Full cover for the entire lease term
  • GAP cover for total loss and theft
  • Garage rules of the lease known
  • Leasing company contact for claims kept in the glovebox
  • A deductible you could pay immediately

Common mistakes

  • Having the leased car repaired at any garage without the leasing company's approval
  • Claiming the loss in value for yourself
  • Taking the repair cost in cash and leaving the damage until the car is returned
  • Believing the other side also pays the gap to the settlement amount after a total loss

Questions and answers

Frequently asked

Who pays if an accident with my leased car was not my fault?

The other driver's motor liability insurer.

It pays for repair, expert report, loss in value and loss of use.

Who gets the loss in value?

The leasing company, because it owns the car.

As the lessee you cannot claim it in your own right.

Do I get compensation for loss of use as a lessee?

Yes.

You can claim loss of use or rental car costs yourself if the other driver was at fault.

Can I take the repair cost of my leased car in cash?

Only with the leasing company's consent if your lease obliges you to repair.

That is the normal case.

Do I have to report the accident to the leasing company?

Yes, always.

It approves the repair, and many leases set the garage and the process.

Who pays after a total loss?

Up to the replacement value, the insurer of whoever was at fault or your full cover.

Only GAP cover pays the gap to the higher settlement amount.

Sources

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