I have a leased car. Full coverage insurance, it got totaled in an accident. Will it be covered completely? ?

Question

I have a leased car. Full coverage insurance, it got totaled in an accident. Will it be covered completely? ?

Answer 1

Does you policy include one of the following: 1. Gap coverage (the difference between trade in value and real market or replacement value)? or, 2. Replacement cost coverage?

If you have one of these, you are most likely covered. If not, then not.

Ask your agent, that's what they get paid for.  

Answer 2

If the car is totaled - the insurance company will pay the actual cash value of the car less the deductible.

Now-- with a leased vehicle -it is possible to be "upside down". That means you owe more on the lease than the car is worth. If that happens - the insurance company only  pays the value of the car.

However, most leases also have Gap coverage as a part of the lease. That would come in once the car insurance pays. However, it will not pay for any late fees/penalties.  

Answer 3

Will it be covered?  Yes.  But completely?  Unknown.

Do you have GAP insurance in place?  Or something on the policy that talks about "replacement value"?  If not, no, you won't be completely covered.  You will get fair market value and may owe a balance after all is said and done.

Read your policy.

Answer 4

This question cannot be answered.  What constitutes "full coverage"?