Auto Insurance Claims: Leased vehicle totaled, leasing contracts, excess mileage

Question
i believe my leased vehicle is totaled and i had 5 payments to go to finish the lease. i have no vehicle right now and have had to rent one in order to get to work. my insurance is handling the estimate and coverage. what should be my next step? what am i entitled to? will i be able to get a replacement for the last 5 months?

Answer
Hi Sonja,
A lot depends on your particular lease contract.  Most leases today are 'closed end' contracts for 24-36 months.  You put down a security deposit to cover any excess mileage or damage that the car may have when you return it at the end of the lease.  If you are not 'over mileage' nor have and damage (minor body dents, scratches, worn tires etc) you may get a portion of your security deposit returned (depends on the contract) and have the choice to just start a new lease with another security deposit.  Many leases give you the option of purchasing the car for the pre agreed upon residual price stipulated in your initial contract.
Read the article at:
http://autos.aol.com/article/general/v2/_a/lease-or-buy/2006085500999001
If the total loss settlement exceeds the residual amount owed to the lease company, the car will be paid off and you will be given the excess funds so you can start a new lease or purchase.
I am not aware of any leasing contracts that would give you a replacement for the 5 months remaining.
I hope this has been of help.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area