Auto Insurance Claims: Lease car totaled, leasing company, lease company


Question
Yeasterday, my daughter's boy friend drove my leased Mercedes(V.Low mileage two months to expire 4 year Lease) and totaled it by heating a tree. I have full coverage and he has liability insurance. Does my insurance covers the loss if I was not driving it? How long do I have to inform my insurance company about the accident and the Lease company? My daughter does not live with me, however she has the spare key just incase I lock myself. I had parked my car at her place and had gone with my sisters car to mall. I appreciate any input I can get before Monday. THanks

Answer
Hi Sharon,

This claim will be paid by your insurance company. Auto insurance follows the car not the driver. If the car is totaled, your insurance company will pay the value of the car on the day of the accident. They will pay to your leasing company. You should report the claim to your insurance company as soon as possible. You should also inform your leasing company.

I hope this helps
Richard Hixenbaugh