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Tesla Lease Insurance Deductable Requirement

Discussion in 'Model S: Ordering, Production, Delivery' started by Argelius, Jul 29, 2016.

  1. Argelius

    Argelius Member

    Jun 8, 2013
    Palm Springs, CA
    I'm new to car leasing -- on my second Model S and decided to lease this time.

    Anyway, I just received notice from the servicing bank (US Bank) that the proof of insurance information I provided was inadequate because it didn't "show comprehensive coverage with a maximum deductable of $500". (My current deductable is $2500.

    So, is this very low deductable a normal requirement for car leases? Seems like the deductable amount is an issue between the owner and insurance company, not the leasing bank. Hate to see what this will do to my premiums...

    Just curious if this is something I can challenge, or if I 'm just stuck with it (my fault for not reading the fine print, I guess).

    ABCCBA Member

    Dec 20, 2015
    You don't own the car, the leasing company does. You are just borrowing it. They get to make the rules. Yes, a $500 deductible is commonplace for leases.

    • Helpful x 1
  3. MP3Mike

    MP3Mike Well-Known Member

    Feb 1, 2016
    You could possibly negotiate with them if you have significant account(s) held with them, or you put $2500 down as a deposit against damage/loss. But I suspect you wouldn't have much luck, but it can't hurt to try right?
  4. cplaw

    cplaw Member

    Jul 14, 2016
    Los Angeles
    $500 deductible is a pretty typical requirement for leases
    • Like x 1
  5. chillaban

    chillaban Active Member

    May 5, 2016
    Bay Area
    Even a lot of financing agreements require it.
    • Like x 2
  6. tagpats

    tagpats Member

    May 3, 2016
    Falls Church, VA
    I am leasing and it is also through US Bank. I just reviewed the insurance section and the maximum deductible is $1000, not $500. Review your lease agreement to see if your language is the same. Perhaps it varies by state.


    Unless otherwise agreed, you must provide insurance coverage in the amount and types indicated below at your expense during the Lease Term and until the Vehicle is returned to us:
    A. Fire, theft and comprehensive insurance with a maximum deductible of $1,000;
    B. Collision insurance with a maximum deductible of $1,000;
    C. Liability insurance for bodily injury or death to any one person in the amount of $100,000 and for any one accident in the amount of $300,000 or combined single limit coverage of $300,000;
    D. Property damage insurance for $50,000
  7. Alex D

    Alex D Member

    Mar 31, 2016
    Lake Worth, FL
    My requirements were $500 deductible, too.
  8. tennis

    tennis Member

    May 6, 2016
    New England
    If you lease through Tesla I think they allow a $2,500 deductible. I got denied by US Bank with a credit score of 803... never followed up.
  9. Galve2000

    Galve2000 Member

    May 20, 2013
    my old Chevy Volt lease had a max insurance deductible of $500. I quietly upped it it $1000 after a year or so. I don't recommend doing this btw. i'm just saying it is what I did.

    I didn't have any claims on my record during my 3 years with the Volt so I can't say what happened if I did. The one accident I did have I was not at fault and the at fault party covered everything.
  10. BriansBucketList

    Mar 18, 2016
    SF Bay Area
    I saw the 500 minimum, and told them the best I could do was 1000. I am, however, a US Bank customer with a mortgage, and several accounts. I believe they lack common sense, and hire people with limited cognitive ability.

    I told them that he difference between a 500 and 1000 deductible equate to whether a customer could pay the 500 more if an accident should occur. Let's see, just leased a 90,000 dollar car. Are they really worried I can't cover 1000 ? I offered to put 1000 in a separate "escrow account" for the comp and collision deductibles. I know this is not the answer, but I told hem I had an umbrella policy, which doesn't resolve he issue, but it impressed them. Ultimately,my he Tesla Finance people were pretty helpful.

    US Bank honestly weren't able to grasp what I was trying to do. If they want to ensure I can cover a 1000 deductible, why don't they just hold 1000 for me. They gave me the lease. This is from a company, that when I refinanced, wanted my "original" social security card. Not the copy you can get any time from They solicited the refi also.

    How messed up are they ? on a solicited refi they sent me, they said my title wasn't clear. My last two loans were through USBank. They said a previous loan had not been paid off.

    When asked, they said the unpaid loan was through USBank. OK, then I asked if US Bank showed unpaid loans against the property. No, they didn't. OK, how do you propose we resolve this ? They said contact the originating bank, which was THEIR OWN BANK.

    I honestly think they can't see the forest through the trees. It gets worse... The title insurance company that cleared the title on the alledged unpaid loan, refused to make good on the insurance. What a scam.

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