Auto Insurance Claims: prior damage on a totaled car, leasing company, insurance company

Question
My leased car was recently totaled due to a car accident. I recieved a bill from the leasing companmy for the 500.00 insurance deductible which i expected and a bill for 575.00 for prior damage. If the car was totaled why are they billing for prior damage? Can they do this?

Answer
Hi Lisa,

If your insurance company made a deduction from the value of the car for the prior damage which reduced the payment to the leasing company, then yes. You should contact your insurance company and ask for a written detailed accounting of the values involved in your claim. If your company did not reduce the the value due to prior damage, then tel the leasing company to get lost.

I hope this helps
Richard Hixenbaugh