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Sniper762

Totaled Car: I have gap insurance, but electric battery is leased

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Hi everyone, I can't remember that last time I was on CB but I will forever be in debt to the board from turning me zero to hero years ago. I have way more credit than I could ever unreasonably use :)

 

I bought an electric car last year utilizing my CU and at the dealer sold me on leasing the battery and they would take of it's maintenance and cell replacement to keep it at 100% for the duration. I like the idea and went with it.

 

I totaled the car and only walked away with a bruised ego.

 

Of course I bought the gap insurance.

 

My insurance companies offer is less than half the purchase price and left me high and dry on the extremely expensive battery.

 

I called my CU to make a gap insurance claim that will take effect once they are paid. During the phone questionnaire he asked me if it was 100% financed and I said yes as in my mind I didn't put any money down.

 

But after I hung up I thought it's not really 100% financed as a substantial amount of money going towards the total car price is being leased via the battery.

 

Virtually to the bank it would be the same as me putting down about a 1/4 of the purchase price in cash?

 

What happens when/if I tell the gap insurance company? How does that adjust payouts?

 

My mind is fried and looking for direction.

 

Thanks

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I assume you paid a lower price for the car because it didn't come with a battery, that being a separate deal. Do you have separate payments for the car and the battery?

 

Was the battery damaged in the crash? Will your replacement car be able to use this same battery? If the battery was damaged I think you'd make a separate claim on it, since the lease maintenance almost certainly wouldn't cover crash damage.

Edited by mk_378

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I assume you paid a lower price for the car because it didn't come with a battery, that being a separate deal. Do you have separate payments for the car and the battery?

 

Was the battery damaged in the crash? Will your replacement car be able to use this same battery? If the battery was damaged I think you'd make a separate claim on it, since the lease maintenance almost certainly wouldn't cover crash damage.

 

Yes separate payments for each. The car and the battery are inseparable. The insurance company only wants to pay the first lien holder and that's it.

From whom did you purchase the gap insurance? Dealer or CU.

My credit union

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Credit union gap should just cover the automobile.

 

All leases I do, automatically grant gap coverage to the lessee. Is the same true for your your battery lease in the case of a total loss? It should be in the fine print on the back side of the contract.

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