Lease car and insurance query

[Discopanda]

I have a lease car arriving next week leased through VW financial services.

If the car is written off, how does the insurance work? Do I effectively use the insurance payout to buy myself out of the finance agreement and start a new one? How do I make sure I'm not out of pocket? Is this where gap insurance would be used?

So second silly question; when specifying the value of the car for insurance do I give the cost I could haggle if for? Or the list price?

Lastly if the lease is settled and I order a new lease car, do insurance companies pay for a hire car given that this could be for 3 months? What else could be done if I'm carless through no fault of my own?

Thanks!

 

[salsajoe]

Outcomes following a write off vary with insurance companies. In the first year some will replace with a new car but not all so check this out first. Same with hire cars check it out with insurance small print. As you say write off can also be a problem after the first year as insurance companies only pay out book price which could be less than the finance owed. So worth looking at GAP insurance. Two types - back to invoice (if you haggle then won't cover a new car as less than replacement costs) or replacement car which will cover the total gap and get you a new vehicle of the same spec or if no longer available the manufacturers direct replacement model.