Insurance on Leased Vehicle

[myothercarisaplane]

Not being a smart man, and having never leased a car before can someone help me with how insurance works on a lease? If the car is totaled, how does the insurance work? I have read a couple threads where the insurance pays the leasing company, which makes sense. But a couple mention that if the cars value is more than the lease remainder, I could potentially receive that money? What happens if the cars value is less than the lease remainder? Can anyone describe a situation where this would happen? Is GAP insurance typically good or bad, or does it depend on the particulars of the lease?

Thank you!

[forbs]

Keeping the Equity:
9 out of 10 times (or at least in this informal number book I keep in my head) the insurance pays the Bank the difference if you are over.
It’s really up to which insurance company you use and which bank you use.

GAP Insurance
Most banks include Gap insurance for Free except for Toyota and I think Mazda. if you wreck it in month 1-12 you might need that Gap.

[max_g]

@myothercarisaplane

But a couple mention that if the cars value is more than the lease remainder, I could potentially receive that money?

That’s an extremely rare set of circumstances. Not worth bothering about.

@myothercarisaplane

Not being a smart man, and having never leased a car before can someone help me with how insurance works on a lease?

Main question is what leases have you found that make sense for your situation