What happens if a lease car gets stolen re insurance?

[blindswelledrat]

Hypothetically you lease a £30k car.
After 3 months of £300 payments you get it stolen and the insurance company pays you out it value of £20k now it is no longer new.

What happens?
Do you then have to pay the lease company the remaining 33 payments of £300 and then at the end of it the value of the car as well or is there some kind of gap insurance built into the lease deal?

[iphonedyou]

blindswelledrat said:

Hypothetically you lease a £30k car.
After 3 months of £300 payments you get it stolen and the insurance company pays you out it value of £20k now it is no longer new.

What happens?
Do you then have to pay the lease company the remaining 33 payments of £300 and then at the end of it the value of the car as well or is there some kind of gap insurance built into the lease deal?

You need to take out gap insurance to ensure you're not out of pocket, essentially.

[bungz]

On a motor for that kind of money Gap Insurance would be pretty essential.

Without it you foot the difference.

[blindswelledrat]

So lets assume I had gap insurance.
Say the main insurer paid me £20k and the gap insurer paid me £10k - what then?
DO I just make monthly payments to the lease company as though I still had the car, and pay the car's value at the end, or do I pay them the whole value of the car as new and forfeit my deposit and payments...or what?

[BL Fanboy]

I suspect they wouldn't pay you anything and any cheques would go straight to the owner.
Lease company might supply a replacement and you'd keep that until the end of the lease.

[V8 Bob]

You pay normal monthly payments until Leasing company gets paid their valuation - as others have pointed out that is what GAP insurance is for - if no GAp insurance is in place have to weigh up paying monthly fee for a car you don't have v coughing up the shortfall - can get messy so should always get insurance.
Much cheaper normally through independant brokers than Leasing companies / Garages


This also applies to any vehicle where you have major loans/finance/Hp deals not just lease veicles

[V8 Bob]

You pay normal monthly payments until Leasing company gets paid their valuation - as others have pointed out that is what GAP insurance is for - if no GAp insurance is in place have to weigh up paying monthly fee for a car you don't have v coughing up the shortfall - can get messy so should always get insurance.
Much cheaper normally through independant brokers than Leasing companies / Garages


This also applies to any vehicle where you have major loans/finance/Hp deals not just lease veicles

[TwigtheWonderkid]

Buy a decent policy that replaces the car with a new one if written off in the first year. Don't just buy the cheapest thing the meerkats throw at you.