Answers

I can only answer some of question #1 and #3.

The following is quoted from the Mercedes website about its First Class leasing if your vehicle is a total loss:

"The difference between the actual cash value of the vehicle paid by your insurance company and the net outstanding balance owed to Mercedes-Benz Financial is covered by a GAP Waiver. This protection applies as long as your insurance is in place at the time of the loss and your monthly lease payments are current up to the time Mercedes-Benz Financial receives the proceeds from your insurance company. You will also be responsible to Mercedes-Benz Financial for an amount equal to your policy's deductible. For more information, call our Client Service Center at 1-800-654-6222

I cut and pasted from Mercedes website the ABOVE information. What it doesn't say is if the GAP Waiver was an option for you to purchase at the outset of the lease or if the Waiver is the included GAP coverage. The wording of things these days is such that it takes three lawyers to figure it out. The info posted above is for 2008+ models. What applies when your lease originated is probably on your lease paperwork. I'd suggest you dig it out and review it, then call the leasing company to close the matter.

Question #3.
I doubt you'll be canceled unless they pull your driving record and see some DUI's and speeding tickets in the last year. If this was an injury accident, that may be another reason. You may see a rate increase, but usually you can have one claim your fault and they'll stand by you. Two claims and they may drop you. In so many words or less, and this is my opinion, they can do anything they want. Every claim you make is put into a database for every insurance company to look at.

Hope this helps. Hopefully the lease terms give you that GAP coverage.

Source: http://www.mbusa.com/mercedes/MBHome.htm...

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The only thing leases are good for is keeping you in a relatively new vehicle. Leases are designed to make money off the interest, that is why you won't have any or much equity in the vehicle. Insurance companies have to pay a fair market value based on like vehicles. The lease costs and fair market value are always different. Usually, GAP insurance is inheirant in all lease contracts and this is to protect their collateral, which is the interest and fees the finance company would have gained had your lease matured. They would then sell the vehicle for profit and you took the hit for the natural depreciation. If you are wanting to have a vehicle for show or not have to worry about maintence, then leases are the way to go. Financially, not the best investment, but we like what we like.

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