What is considered "totaled" for a leased car?

I was in a 5 car accident last night, my car being in the middle.





I was wondering how the insurance company decides if my car will be totaled or fixed. The damage is to the front and back. It is a lease. I am in NJ.





Will there be a problem at the end of the lease if it's not totaled, since it as been in 2 accidents? I assume it can be fixed but it will probable cost a lot.





Does the insurance company prefer to total a leased car more than a financed/owned car? Is there a special formula they use to calculate a leased car value?





I looked on KBB and Edmunds, and I am not sure what to put for condition. Does the insurance company go by the current poor condition or what condition it will be in once it is fixed?





Thanks. |||If the cost to fix the car is greater than the bluebook value of the car, then it's considered totaled.|||Totaled= Beyond repair, or repairing the car would cost more than the current value of the car.|||totaled is when it cost more to fix than the car is worth.. and either way i wouldnt worry about it if you had insurance they will take car of it|||I think the insurance company looks at how much it will cost to fix it, compared to how much is owed.





I had a car which was supposed to be totaled (the diminished value guy told me that), but they decided to fix it anyway. By the end it cost more to have it fixed, than the car originally cost. |||The same as they would figure for any car. The insurance will eventually send out an appraiser who will determine the damage to your car. If the costs of repairs is more than the fair market value of the car, adjusted for condition before the crash, they will total it.





Fair market value may or may not pay off your lease if it is totaled, and if it doesn't you will be responsible for the balance.|||For a car to be totaled, the damages must exceed the blue book value of the car. The insurance company usually takes the specifications of your vehicle (current selling value, trading value, mileage, previous accidents, previous bodywork, etc.) and estimates the value of your car. The insurance agency then sends an adjustor to determine the cost of the damages. If the adjustor finds that the cost of repair will exceed his estimated cost of the vehicle prior to the wreck, then the insurance company should replace your car. I would contact my insurance agent and the leasing agency as soon as possible and see what steps to take from here (I am unfamiliar with NJ laws and regulations as well as the regulations of the leasing agency and insurance company). After a fault determination is made, things should be much clearer and easier to deal with. As for preferntial treatment regarding lealse/own, I believe that MOST clients are treated equally regardless of their status of ownership. They do however, understand that the leasing agency can probably withstand a totaled car better finiancially as opposed to someone who owns their car (dependant on your insurance coverage). Good luck, I hope everything works out for you.