Sorry to hear that. Can it be state dependent? Someone got extra payout as reported here back in Jan 2020. Which state do you live in?
It’s insurance dependent. As you can see it came from Metromile, not BMW.
Are you saying that it depends on the insurance company’s practice whether they’d send out the excess payout to bank or lessee?
Yes, most dont some do
It looks like you’re only considering the difference in deductibles vs the likelihood of a claim. You also need to factor in the likelihood that your insurance will go up if you file a claim…or 2 claims. I try to avoid filing claims to prevent my premiums from going up…and I therefore carry a high deductible.
To illustrate this point, I was buying a Maserati several years ago. At the time, I had Geico but they wouldn’t insure Maseratis. I got a reasonable quote from Allstate ($2000?) and proceeded to buy the car. The next day, Allstate called and said my premium would be double what was quoted ($4000?) because I had a claim on my record. I didn’t recall having a claim so I asked them for more info. Turns out, I had a windshield chip fixed at no cost to me but the insurance industry still considers that $100 repair as a claim. I ended up getting Geico to make an exception on the Maserati (to keep my other policies) but had they not done so, I would have been paying $2000 more per year for a $100 windshield repair.
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I don’t think it’s entirely true. The bank can ask the insurance to send out the entire payout to them since they are the owner. Here is an example as reported by @jet here. Initially Liberty Mutual stated that they’d send out the excess payout to him but after they talked to AudiFS, they had to send out the entire payout to AudiFS.
Was pretty annoyed when this happened and I’ve pretty much always gone the $1000 deductible route. Luckily I found a primed hood on Ebay for $175 or so plus another $150 in shipping. A retired BMW Master mechanic
(Friend) helped me swap it out and then had a body shop paint it for $600 or so. Still miss that BMW however manual transmission in my Atlanta days got pretty old, pretty quick.
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I asked that exact question of BMW as I wanted to know if it was state dependent. They claimed that it was not and they were following this practice in all 50 states to cover the losses they incurred when Covid first hit and people couldn’t make their payments.
It was already performed by insurance company actuaries. They have already calculated probability of an accident costing above your deductible in your zip code and figured how much they should charge in premiums to cover the this + COB. Unless you know something they don’t, which would be unlikely, there is nothing to calculate.
So a consumer should just blindly trust insurance companies? If their calculations are so correct, why do premiums vary so much with different companies for the exact same coverage/terms?
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Obviously, different insurance companies charge different premiums for same policies. COB is different. Pool of consumers is different. CEO options packages are different.
Obviously, one should shop around for insurance with lowest premiums for the same policy, but that has nothing to do with cost analysis, this is plain ole shopping around.
Yea I leased a Lexus is 350 in 2 months was in a accident not at fault I put down 4000 but insurance gave me back 6000 i pocketed the money went and leased again zero down monthly payment was 150 more but I realize now 4000 wasn’t worth saving 150 sign and drive for now on
How much extra are you willing to pay to insure against the risk of losing a $5,000 down payment on a 3-year lease?
If your threshold isn’t listed, choose the closest value.
- $0
- $100
- $500
- $1,000
- $2,500
- $5,000
- $10,000
- There is no limit to what I’d pay for peace of mind.
0 voters
Where is 0?
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I thought it was just me.
Fixed it for you.
No, certainly not just you, although we are a minority. Voted )
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Surely it can’t be literally zero? If the dealer offered you insurance for $25 that would reimburse you the $5k, you’d pass?
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Choose the closest value, I guess.
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But if i don’t put 5k down & not buy in the insurance, I’d have $5,025.
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Tough poll because I’m paying the premium for more than simply protecting myself against a loss of the down payment. That money down could be working for me in the market, a modest 5% return yields $950 over three years. Additionally, putting $0 DAS gives me more flexibility with lease swaps.
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