Totaled model 3

[Jorkam89]

Hello,
I recently totaled my M3 LR which was being lease.

So a little confusing

(See pictures)
19. Says they are entitled to proceeds regarding damage/destruction
29. Says “We will credit you for any excess of the insurance settlement over the adjusted lease balance.”

My cars value at time of lease was 48600 plus tax
50900

Used cars are selling between 55-60k

50900-13 lease payments (550)
43750- balance of car?

Will I receive the excess if the lease payoff? This is real important because the price has gone up $9000 plus $2000 NY tax credit that is no longer given.
Before running these numbers I honestly didn’t think I would be able to afford another Tesla. The only way i can get another is if the official answer is that I am entitled to the excess payout, even if I lease from Tesla.

 

[jjrandorin]

You are entitled to any additional payments from insurance..... but insurance is not going to pay "what the car is worth" they are going to pay off the loan on the car. Thats all you should expect (that the loan is paid off).

There is no reason at all for the insurance company to offer more than the outstanding balance on the vehicle.

 

[3Volts2aTes]

Actually the insurance should pay the current value of the car, not the payoff. Naturally a lean holder gets their value first. There is every reason for the insurance to pay the value of the vehicle - that is the entire point.

However, you are right that there is no reason to offer more than a payoff if they think they can get away with it.

 

[pipp]

It might depend on the insurance. My wife totaled her leased Mercedes last September and 21st Century paid the current value of the car, which was $4,000 more than what it was worth at the time she leased it.

 

[kenneth1]

You are entitled to any additional payments from insurance..... but insurance is not going to pay "what the car is worth" they are going to pay off the loan on the car. Thats all you should expect (that the loan is paid off).

There is no reason at all for the insurance company to offer more than the outstanding balance on the vehicle.

Insurance is there to put you back in the same position as before the accident. They are meant to pay market value for the car - loan amount is irrelevant. In fact previously when cars where depreciating as normally instead of gaining value like at present you used to need gap insurance to ensure the loan would be paid off if car was totalled as it was possible the loan was more than the car worth.

 

[yamanote]

You are entitled to any additional payments from insurance..... but insurance is not going to pay "what the car is worth" they are going to pay off the loan on the car. Thats all you should expect (that the loan is paid off).

There is no reason at all for the insurance company to offer more than the outstanding balance on the vehicle.

Insurance will pay out whatever the replacement value is, irrespective of your outstanding loan balance. Whether this amount is higher or lower than your loan balance is not their concern.

As mentioned above, gap protection is insurance typically bought separately, which covers the downfall between the current vehicle value and the loan balance if totalled. In today's market where cars appreciate in value, this is not as relevant, but more useful under normal circumstances where buyers are underwater in their loan the moment they drive off the lot.

Another example is if someone had rolled in a bunch of negative equity from a previous car into their current lease - insurance would certainly not pay off your entire outstanding balance if you totalled the new car.

 

[Thomasjohn94]

Hello did you ever get an accurate answer or update from your actual situation. I’m actually in the same exact situation as you. I have done so much research and found nothing

 

[Jorkam89]

Hello did you ever get an accurate answer or update from your actual situation. I’m actually in the same exact situation as you. I have done so much research and found nothing

Yes insurance paid me 60k for the car. Owed Tesla 41and change. I received 19k.

 

[3sr+buyer]

You are entitled to any additional payments from insurance..... but insurance is not going to pay "what the car is worth" they are going to pay off the loan on the car. Thats all you should expect (that the loan is paid off).

There is no reason at all for the insurance company to offer more than the outstanding balance on the vehicle.

That would not be true, because if it were, there would be no point in buying collision insurance for a fully paid for vehicle (or making a claim against an at-fault driver's insurance company for the vehicle being destroyed in a crash).

Insurance payout for total losses will be what the insurance company estimates will cost to replace the vehicle from the used car market (usually through a third party estimating / surveying service that looks around the used car market for ostensibly similar cars). If there is a loan or lease on the car, the amount may be more or less than the payoff amount for the loan or lease, which is not a factor in determining the valuation in a total loss.

 

[Thomasjohn94]

Yes insurance paid me 60k for the car. Owed Tesla 41and change. I received 19k.

Hello, when you got paid , did they pay you directly and then you worked with Tesla? because my insurance company is offering 58 and change but saying they need to give it to Tesla. I was just hoping it works out the same way as you, this way I have insight to process it a certain way. not sure if they gave Tesla the money in ur situation and then Tesla sent you a check. ?

 

[3sr+buyer]

Hello, when you got paid , did they pay you directly and then you worked with Tesla? because my insurance company is offering 58 and change but saying they need to give it to Tesla.

Is Tesla the lender for a car loan, and how much principal is remaining on the car loan?

 

[Yaya2020]

Hello, when you got paid , did they pay you directly and then you worked with Tesla? because my insurance company is offering 58 and change but saying they need to give it to Tesla. I was just hoping it works out the same way as you, this way I have insight to process it a certain way. not sure if they gave Tesla the money in ur situation and then Tesla sent you a check. ?

I’m very interested in this answer as well! I’m in the same boat —curious if my insurance company will pay Tesla directly?

 

[hakunamattata]

Even I am very interested to figure out how this all works as I am in the same boat too. Also did you have to fight it out with the insurance with regards to market value of the car. Also any experiences with State Farm?

 

[3sr+buyer]

Even I am very interested to figure out how this all works as I am in the same boat too. Also did you have to fight it out with the insurance with regards to market value of the car.

The insurance company should be willing to give you documentation on how they came up with the valuation. They probably subcontract a third party company that surveys same year, make, model cars recently sold and for sale at dealers in your area, and tries to match the loss vehicle (with additions or deductions for options, mileage, and pre-loss condition) to estimate what it would cost to replace the loss vehicle from the used car market. Any applicable taxes and pro-rated license costs should be added to the offer. You can check the documents to see if they are realistic with respect to the condition and options of the loss vehicle and whether the comparables are the most comparable in the area.

 

[Jorkam89]

Owed Tesla 41k. Gieco paid 60k for the car. 19k right to me

Even I am very interested to figure out how this all works as I am in the same boat too. Also did you have to fight it out with the insurance with regards to market value of the car. Also any experiences with State Farm?

 

[Jorkam89]

I’m very interested in this answer as well! I’m in the same boat —curious if my insurance company will pay Tesla directly?

They paid me 19k before Tesla even got the 41k

 

[z_yury]

Yes insurance paid me 60k for the car. Owed Tesla 41and change. I received 19k.

How long did it take Tesla to contact your insurance after you submitted the total loss request on the app (where you enter your insurance company, total loss specialist e-mail, etc...)?

 

[hakunamattata]

How long did it take Tesla to contact your insurance after you submitted the total loss request on the app (where you enter your insurance company, total loss specialist e-mail, etc...)?

They say it takes about a week to process the request, in my case it was 4 calendar days. In my case I called Tesla finance and left them a message, they called me the very next day to confirm they have the request in queue.

 

[Amy Arias]

What number did you call Tesla finance? I can’t find their contact information anywhere and my car was involved in an accident on Friday. I’m sure insurance is gonna consider it totaled but I haven’t found a way to contact Tesla.

 

[hakunamattata]

What number did you call Tesla finance? I can’t find their contact information anywhere and my car was involved in an accident on Friday. I’m sure insurance is gonna consider it totaled but I haven’t found a way to contact Tesla.

I had their number from communications in the past, it is 844-837-5285 or [email protected]