Hypothetically If a leased car is totaled in a no fault accident is what’s owed to the leasing company the total monthly payments owed for the lease term or is it the residual amount or would it be the payoff amount? Or how is it normally determined?, I’m assuming gap insurance would cover the difference?
The payoff would be the required amount to close the loan. Usually it is the residual plus remaining payments. GAP is included with most leases, so that will cover the difference if there is any negative equity. Also, keep paying any payments even if the car is totaled. The bank doesn’t care who is at fault or when the settlement is coming. I have seen people miss 2-3 payments and have their score dragged down because they were stubborn.