What Happens if You Total a Leased Car in Missouri?

1. What Does It Mean to “Total” a Car?

A vehicle is considered totaled when the cost to repair it exceeds its actual cash value (ACV). In Missouri, an insurance company typically declares a car a total loss when repair costs reach 80% or more of the vehicle’s fair market value (Missouri Department of Revenue).

If your leased car is deemed a total loss, you do not own the vehicle outright—the leasing company does. This means the settlement process works differently than if you owned the car.

2. Who Pays for the Damage?

If you total a leased car, your insurance policy and the lease agreement determine who is financially responsible. In Missouri, all drivers must carry minimum liability coverage, which only covers damage you cause to others—not your vehicle.

Your collision coverage (if you have it) should pay for the damages to the leased car up to its actual cash value (ACV) before the accident. However, you may still owe money if the insurance payout doesn’t cover the full amount remaining on your lease agreement (Missouri Revised Statutes §303.020).

3. What Happens to Your Lease After a Total Loss?

Since you don’t own the leased car, the insurance payout goes directly to the leasing company. The leasing company uses this money to cover the remaining balance on the lease. However, if the payout is less than what you owe on the lease, you are responsible for paying the difference. This is where gap insurance can help.

Without gap insurance, you might have to pay thousands of dollars out-of-pocket for a car you can no longer drive. If you’re leasing a vehicle, check your lease agreement to see whether gap coverage is included or if you need to purchase it separately (Missouri Department of Insurance).

4. The Role of Gap Insurance in a Total Loss

Gap insurance, or Guaranteed Asset Protection insurance, is an optional policy that covers the difference between what you owe on a leased car and its actual cash value.

For example:

• You owe $25,000 on your lease.
• The car’s actual cash value (ACV) is $20,000 at the time of the accident.
• Your insurance company only pays $20,000, leaving a $5,000 gap.
• Gap insurance would cover the $5,000 balance, preventing you from paying it out-of-pocket.

Gap insurance is highly recommended if you’re leasing a car, and some leasing companies even require it (Missouri Revised Statutes §379.203).

5. Steps to Take After a Total Loss

If you total a leased vehicle in Missouri, follow these steps to handle the situation properly:

• Report the Accident – Call 911 if there are injuries, and report the accident to the police and your insurance company.
• Determine the Total Loss Value – Your insurance company will assess the damage and calculate the car’s actual cash value.
• Contact Your Leasing Company – Notify the leasing company and check whether you have gap insurance.
• Review Your Lease Agreement – Understand your financial obligations, including fees or penalties.
• Negotiate the Insurance Payout – If you disagree with the insurance company’s valuation, you can provide evidence of higher market value (such as recent sales of similar vehicles).
• Arrange for a New Vehicle – Once the total loss is resolved, you may lease another vehicle or explore other options.

6. What If You Still Owe Money After a Total Loss?

You’ll need to pay the difference if you don’t have gap insurance and the insurance payout doesn’t cover the remaining lease balance. If you’re unable to pay, options include:

• Negotiating with the leasing company – Some companies may allow a payment plan.
• Filing an insurance dispute – If the insurance company undervalued the car, you can challenge their assessment.
• Exploring legal options – If you believe the leasing company unfairly charges you, consult a Missouri personal injury attorney for advice.

7. Can You Be Sued for a Totaled Leased Car?

Yes—if you don’t pay the remaining lease balance, the leasing company could take legal action to recover the money owed. Additionally, if another driver or passenger was injured in the accident, they may file a personal injury lawsuit against you.

Missouri follows a fault-based system, meaning the driver responsible for the accident must pay for damages. If you were at fault, your liability insurance should cover damages to others, not your injuries or vehicle (Missouri Revised Statutes §303.030).

If you’re facing legal issues or insurance disputes after totaling a leased vehicle, seeking legal guidance from a Missouri car accident attorney can help protect your financial future.