The insurance company will settle the claim based on the mileage and market value of the car, like they would if you financed. In most cases the settlement will payout the vehicle. But if you have higher mileage then you may have to pay some money. Usually the deductible is payable. On new cars insurance companies offer a waiver of depreciation coverage that will pay off the replacement value of vehicle. This coverage will vary from 18 months to 60 months depending on the company. Ask your broker for this on all new lease vehicles.