Advice on gap deductible

Since the other party is at fault, their insurance should cover the actual cash value (ACV) of your vehicle at the time of the accident. Here's how this might play out:

  1. Outstanding Balance and GAP Insurance: GAP insurance typically covers the difference between the car’s ACV (as paid by the at-fault party's insurance) and the remaining balance on your lease. However, because your outstanding balance ($500) is below the deductible on your GAP insurance ($750), your GAP policy won't apply here.

  2. Deductible Reimbursement: Generally, the at-fault driver’s insurance would cover the ACV directly, without deductibles affecting you. If your lease balance is slightly above the insurance payout, you'd need to pay the remaining balance, but in this case, it sounds like they’re already covering the full ACV.

  3. Negotiating with the At-Fault Insurance: While insurers may cover certain ancillary expenses, it's uncommon for them to pay any remaining balance you owe on a lease beyond the ACV settlement. It may still be worth contacting their insurance to clarify or to request reimbursement of any small differences, but it’s unlikely they’ll cover it.

Ultimately, if the at-fault insurance’s ACV payout covers the majority of your lease balance, you may only be on the hook for the remaining $500.