[SkykingUSA]

My insurance company offers New Car Replacement coverage (for a fee) for the first year or 15000 miles. In other words, if the car is totaled within that time, they will replace it with a NEW vehicle of same year, make and model at no additional cost to me (minus my deductible). Has anyone ever purchased this type of coverage and had occasion to use it?

I'm curious about how your claim experience worked and if it covers leased vehicles (and not just purchased vehicles). I will of course ask my insurance company as well, but still curious about people's actual experiences with this situation.

For anyone interested, here is a link explaining this coverage.

https://www.connectbyamfam.com/learn...-gap-coverage/

[TurtleBoy]

If you think you are at risk for totaling it and t is a small premium then maybe take the chance.

It wouldn't make sense to have this for a leased vehicle as there is nothing to replace. GAP coverage is included with the lease so you turn it in and lease a new one. Obviously don't put a down payment on a lease.

[leasehackr]

Originally Posted by TurtleBoy

If you think you are at risk for totaling it and t is a small premium then maybe take the chance.

It wouldn't make sense to have this for a leased vehicle as there is nothing to replace. GAP coverage is included with the lease so you turn it in and lease a new one. Obviously don't put a down payment on a lease.

TurtleBoy so what happens if the leased vehicle gets totaled in the first year or after? Does the insurance company write the check for the 100% outstanding balance to BMWFS?

[TurtleBoy]

Originally Posted by leasehackr

TurtleBoy so what happens if the leased vehicle gets totaled in the first year or after? Does the insurance company write the check for the 100% outstanding balance to BMWFS?

No, not the outstanding balance but rather the actual cash value of it. That is why you don't want to put a large down payment down because any "equity" will be kept by BMW. Any shortfall is covered by the lease's built in GAP coverage.