Auto Insurance Claims: Totalled lease, nissan 350z roadster, nissan 350z

Question
I leased a Nissan 350Z Roadster. My buyout price is $20,500. I owe 5 more months at $629.

I totaled the car.

The insurance company wants to pay $27500. I believe they will go up (They basically said they would agree on $29500. Fair cash value is about 30,000.

Anyways, Nissan is trying to tell me I can not buy the car at this point and simply pay them the buyout plus remaining lease months.

I believe this is wrong. I do not believe my lease contract says I can not buyout the car if I crash it.

They want all the money to go to them and on top of that, they want my $1000 deductable too even though they are getting $3000 more than I would owe them...

Any ideas?

Thanks,

Sean

Answer
You owe what you owe, regardless of the circumstances of the payoff.  It's not that they are going to keep the overpayment, but they do have first right to all payments and the insurance company has a legal obligation to pay the lease holder first.  Any overpayments will then be paid back to you by the lease holder.  

As far as the salvage is concerned, this varies from state to state so there is no way that I can address that part of the question.
Good luck!