Refused Refund of Gap insurance

ak1004 wrote: ↑ Not exactly.

For example, if your car was total loss after 2 months, you can still owe more than the full price of a new car because of the interest.

But you get it replaced...so you still have a car.

Pete_Coach wrote: ↑ But you get it replaced...so you still have a car.

No. In our case, we had OPCF 43 (waiver of appreciation), so the insurance paid to the leasing company the original purchase price, and since the car was 2 years old, our balance was much smaller than the original purchase price because we paid 2+ years for it. But imagine the accident happens 2 months after you get the car. You get it for say 50k, but you owe the leasing company $55k because of the interest. Since you made only 2 payments, you now owe maybe $53-54k, so even if you have OPCF 43 and the insurance pays the full $50k, you still owe money if you don't have gap insurance.

Luckily, I think most leases today come with gap insurance standard from the leasing company, but still worth to check.