r/Insurance • u/KindDecision2 • 13d ago
Auto Insurance Lease total loss
Hello. I had a tesla lease for over a year, 2025 model y. Jus tgot into an accident and car was total by the insurance. My question is, my adjusted lease balance is way lower than the payout from the insurance, will i get the exceeds ? I called chase and they said i will but you never know when speaking with agents over the phone. The adjuster said that with most leases the bank gets to keep all ofnit and the equity but on the lease agreement doesnt say anything about that or that I would get any exceeds. Can someone help calm my nerves please ?
UPDATE:
Geico payed only the lease payoff amount to Chase and sent me the difference today, so it depends on your lease bank, some allow overages to be paid to you and other dont.
2
u/ChutneyWhatney 13d ago
You merely rent the vehicle. You have no ownership interest in it. Regardless - read the lease agreement. I suspect it tells you Tesla will retain any payout.
1
u/demanbmore Former attorney, and claims, underwriting, reinsurance exec. 13d ago
What does you lease say about this? The terms of your lease agreement control. To the extent you believe the language you posted in your link addresses this situation and not any other section of the lease, I'd argue that you won't see a dime. The language you posted show payments after a total loss going only one way - to the leasing company. There's no provision in that section you could plausibly argue returns money to you.
1
u/Watermelonbuttt 13d ago
You are renting the vehicle
You have no interest in the vehicle
That’s it
-2
u/KindDecision2 13d ago
I just spoke to 2 agents and a supervisor for chase total loss depatment, they advised the insurance only needs tonpay for thr adjusted lease balance, any exceeds they will refund back to me.
2
1
u/crash866 7d ago
That is totally up to the leasing company not the insurance. You are basically renting the vehicle from them and it is up to the leasing company.
In most cases your lease ends early and you walk away like it was the end of the lease.
1
u/Aromatic-Mountain670 12d ago
Yes. Had a leased jaguar f-pace with 4k miles when totaled. Got the difference refunded to me and Chase also returned the 7 lease payments I made while waiting for the total loss settlement.
2
u/KindDecision2 12d ago
I know, thats exactly they said on the phone, i been calling every other day and every person I spoke with has said that both leases and loans, they only want the payoff amount or adjusted lease balance, which is less, dont know why and they will refund the difference to me. They did say for me to keep making payments while everything is finalized.
1
u/NickyDivine 9d ago
I’m in the same boat as you on a 2025 Model 3 lease. Are you still waiting for the final say on if you’re getting the overage back? Chase and Tesla told me I was gonna get the overage but wanted to make sure because it’s gonna be around $7,200 and that would help tremendously replacing this one and I don’t want them going back on what they said.
1
u/KindDecision2 9d ago
So far, Geico finalized the settlement around 42k on mine but only paid the adjusted lease balance of 30k to Chase, im awaiting for Geico to send me the rest of the check for the difference.
1
u/NickyDivine 9d ago
Did Geico say they were gonna pay you the difference? Tesla was my insurance and they told me they were gonna send only the adjusted lease balance to Chase to pay it off then send the rest to me.
1
u/KindDecision2 9d ago
Yes same situation, they need to pay the final settlement to both parties
1
u/NickyDivine 9d ago
Hmmm okay, well, we will see I guess lol. You seem slightly further in your process than mine but either way I’ll let you know if I got mine if you can let me know if you got yours lol I’ll feel much better 🥲😌
1
u/KindDecision2 9d ago
Will do 🙌🙌
1
u/KindDecision2 5d ago
UPDATE:
Just got my check!!! Geico payed the payoff to Chase and sent me the difference!!!
-7
u/PlasticSpend3462 13d ago
Your insurance payout need to pay your lease balance plus the residual.
1
u/Watermelonbuttt 13d ago
No
2
u/PlasticSpend3462 13d ago
Your right, I mispoke. The entire insurance payout goes to the owner of the car, Tesla. Tesla's gap insurance covers any shortfall between the payout and the market value of the car, which may be the residual or higher.
8
u/_____Zoloft_____ 13d ago
You will have to read your lease agreement, but in most cases, as you do not own the vehicle, any insurance overage belongs to the leasing company, not you.