Total loss on lease

550iiii · 01-29-2021, 01:26 AM

long story short.. vehicle payoff was 52K 12/28/20
insurance paid more then 52K but BMW insurance dpt its not refunding any overage
called them couple times they told me they own the title its an lease any overage they keeping it

any help will be great

Thanks

Sophisto540 · 01-29-2021, 05:13 AM

It's your insurance policy though and any overage is due to the policy YOU selected and paid for. You are the beneficiary of the policy not BMW and should only have to pay for the damage.

This is like getting in a wreck and your insurance company paying the other driver extra. Insurance companies don't just pay out extra. That doesn't make sense. Call your insurance company and find out why they sent the overage to BMW.

jjscsix · 01-29-2021, 07:43 AM

I can see both sides to this. It’s essentially like insurance paying for repairs to a house with a mortgage. Due to the lien on the house, the money goes to the mortgage company to protect their investment. I understand the point of the overage though. Will be interested in seeing how this plays out.

handinpalm · 01-29-2021, 09:52 AM

Who ever holds the title gets the $$.

calbears · 01-29-2021, 10:30 AM

My experience with this situation is that the insurance did their work and offered up a settlement. My car had a payoff that was less than the settlement. My insurance paid the payoff amount and sent me the difference.

LogicalApex · 01-29-2021, 12:02 PM

I've never leased so I have no idea how that works. But the one time I totaled a car the insurance company requested the payoff value from the lien holder and cut them a check for that amount. The amount over the payoff amount was sent to me directly in a cashier's check overnight.

I don't know if leasing is any different though since you technically don't own the car and are only renting it. Your insurance agent should help clarify how it works though so you can know how best to resolve it.

As I can understand BMW keeping it with the idea that the car was not sold at wholesale, but was sold private party and they are getting the full market value on a car they own. As insurance didn't pay you the "balance" on the car when it is totaled. They are buying the car from you private party and paying you as such. That's why the total payoff is usually higher than KBB.

A google search brings up a guide that suggests this may be the norm, but you'll have to do the legwork to figure out where the truth is.

https://www.leaseguide.com/articles/...-car-accident/

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bimmer_335 · 01-29-2021, 03:30 PM

Quote:

Originally Posted by handinpalm

Who ever holds the title gets the $$.

thats my understanding. This is why you should not put a lot of money down on a lease.

Resjudicata · 01-30-2021, 12:24 AM

Quote:

Originally Posted by bimmer_335

Quote:

Originally Posted by handinpalm

Who ever holds the title gets the $$.

thats my understanding. This is why you should not put a lot of money down on a lease.

I believe this is correct

steve090619 · 02-01-2021, 06:20 AM

Quote:

Originally Posted by Resjudicata

Quote:

Originally Posted by bimmer_335

Quote:

Originally Posted by handinpalm

Who ever holds the title gets the $$.

thats my understanding. This is why you should not put a lot of money down on a lease.

I believe this is correct

Quote:

Originally Posted by Resjudicata

Quote:

Originally Posted by bimmer_335

Quote:

Originally Posted by handinpalm

Who ever holds the title gets the $$.

thats my understanding. This is why you should not put a lot of money down on a lease.

I believe this is correct

When you lease, put zero down. You should even incorporate taxes into monthly leases. Then you're covered for a situation like this. Remember you're just a renter, why give landlord all your money up front.

LuvMyE92 · 02-01-2021, 08:17 AM

The info above about the money going to the lease company (which is who owns the car) is correct. You pay for the policy yes, but it's the car that's insured, not you, so the payout goes to the owner of the vehicle.

PLEASE NOTE that insurance laws vary between states, so take any information you get here (or on any Internet forum) with a grain of salt. And most of us here are not insurance professionals.

crmgr · 02-04-2021, 10:21 AM

I lay part of the blame on your insurance company. The insurance company should have obtained a payoff on the lease from company doing the financing, such as BMWF. The lease balance is paid and any overage sent direct to you. Looking at it from a shortage, if your insurance company offer was less than the payoff and GAP did not cover the shortage, BMWF would be going after you for the deficiency. They would not be writing off the loss.

I would escalate your complaint to get the refund on the overage.

01-29-2021, 01:26 AM	#1
550iiii New Member 2 Rep 29 Posts Drives: 550i Join Date: Mar 2013 Location: CA iTrader: (0)	Total loss on lease long story short.. vehicle payoff was 52K 12/28/20 insurance paid more then 52K but BMW insurance dpt its not refunding any overage called them couple times they told me they own the title its an lease any overage they keeping it any help will be great Thanks
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01-29-2021, 05:13 AM	#2
Sophisto540 Private First Class 92 Rep 122 Posts Drives: BMW 540i Join Date: Jul 2020 Location: Sneads Ferry, NC iTrader: (0) Garage List 2017 BMW 540i [0.00]	It's your insurance policy though and any overage is due to the policy YOU selected and paid for. You are the beneficiary of the policy not BMW and should only have to pay for the damage. This is like getting in a wreck and your insurance company paying the other driver extra. Insurance companies don't just pay out extra. That doesn't make sense. Call your insurance company and find out why they sent the overage to BMW.
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01-29-2021, 07:43 AM	#3
jjscsix Private First Class 93 Rep 184 Posts Drives: 2017 540, 2016 GX460 Join Date: Jun 2019 Location: Houston iTrader: (0)	I can see both sides to this. It’s essentially like insurance paying for repairs to a house with a mortgage. Due to the lien on the house, the money goes to the mortgage company to protect their investment. I understand the point of the overage though. Will be interested in seeing how this plays out. __________________ 2017 540 M-Sport, 2016 Lexus GX460 And some fast motorcycles
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01-29-2021, 09:52 AM	#4
handinpalm New Member 12 Rep 14 Posts Drives: 2021 530i Join Date: Jan 2021 Location: tampabay fl iTrader: (0)	Who ever holds the title gets the $$.
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01-29-2021, 10:30 AM	#5
calbears Colonel 4251 Rep 2,488 Posts Drives: 2018 F80 M3 CS,2017 F87 LBB M2 Join Date: Jan 2017 Location: Bay Area iTrader: (0) Garage List 2011 M3 [10.00] 2017 M2 [10.00] 2018 M3 CS [10.00]	My experience with this situation is that the insurance did their work and offered up a settlement. My car had a payoff that was less than the settlement. My insurance paid the payoff amount and sent me the difference. __________________ 2018 F80 M3 CS 2017 M2, LBB, DCT, exec, car play, MPE, diffuser 2011 E90 M3 ZCP Past: E90 328i, F10 535i, F80 M3 (murdered)
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01-29-2021, 12:02 PM	#6
LogicalApex Colonel 2026 Rep 2,946 Posts Drives: 2020 BMW 530xe Join Date: Jul 2019 Location: Farmington, NY iTrader: (0) Garage List 2020 BMW 530xe [0.00]	I've never leased so I have no idea how that works. But the one time I totaled a car the insurance company requested the payoff value from the lien holder and cut them a check for that amount. The amount over the payoff amount was sent to me directly in a cashier's check overnight. I don't know if leasing is any different though since you technically don't own the car and are only renting it. Your insurance agent should help clarify how it works though so you can know how best to resolve it. As I can understand BMW keeping it with the idea that the car was not sold at wholesale, but was sold private party and they are getting the full market value on a car they own. As insurance didn't pay you the "balance" on the car when it is totaled. They are buying the car from you private party and paying you as such. That's why the total payoff is usually higher than KBB. A google search brings up a guide that suggests this may be the norm, but you'll have to do the legwork to figure out where the truth is. https://www.leaseguide.com/articles/...-car-accident/ Last edited by LogicalApex; 01-29-2021 at 12:10 PM.. Reason: Added Link
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02-01-2021, 08:17 AM	#10
LuvMyE92 Occasionally frequent poster 3000 Rep 2,744 Posts Drives: CT5V-Blackwing Join Date: Jan 2008 Location: RTP NC, USA iTrader: (0)	The info above about the money going to the lease company (which is who owns the car) is correct. You pay for the policy yes, but it's the car that's insured, not you, so the payout goes to the owner of the vehicle. PLEASE NOTE that insurance laws vary between states, so take any information you get here (or on any Internet forum) with a grain of salt. And most of us here are not insurance professionals. __________________ Current inventory: F22 & G05 Cadillac CT5-V Blackwing w/3 pedals Past: E24,E28(3),E34,E36,E37,E38(2),E39(4),E46,E89,E92 (obviously),F01,F06,F10,F30,F87,G12,G30(2),G82(2)
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02-04-2021, 10:21 AM	#11
crmgr Private 6 Rep 85 Posts Drives: 2011 BMW 535XI M-Sport Join Date: Jun 2011 Location: Ohio iTrader: (0)	I lay part of the blame on your insurance company. The insurance company should have obtained a payoff on the lease from company doing the financing, such as BMWF. The lease balance is paid and any overage sent direct to you. Looking at it from a shortage, if your insurance company offer was less than the payoff and GAP did not cover the shortage, BMWF would be going after you for the deficiency. They would not be writing off the loss. I would escalate your complaint to get the refund on the overage.
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