Lease Buyout. How does Insurance work?

[RJStinger]

Statefarm quoted me 530$ / 6months for comprehensive insurance for a GT2 AWD.

I have a questions as to what happens if you total the car pretty soon after you buyout the car?

Statefarm said if I lease or finance it, they can give me gap insurance to make up for the immediate depreciation of the car. However, if the car is paid off, they only give the market blue book value in case of a writeoff.

I'm just trying to factor in all all eventualities if I end up doing the lease buyout. But god forbid if the car gets totaled within the year of buying it, I dont want to be stuck with a potentially 10,000 loss.

 

[Jayce]

If you total it, and you paid cash, then yeah you take a loss. Only way to protect against a loss is to have gap insurance and either have it leased or financed. However then you're paying interest. If you buyout the lease, but use financing to do so, you can still use gap insurance.