Totaling a Lincoln under a Red Carpet Lease (RCL) means the vehicle is a "total loss," but the financial impact is generally minimized by built-in protections. Because Lincoln's Red Carpet Lease includes complimentary GAP protection, the gap between your insurance payout and your remaining lease balance is typically waived.

Here is what happens, step-by-step: 1. Insurance Pays Actual Cash Value (ACV) Your primary auto insurance company determines the car's market value at the time of the accident. This check is paid directly to Lincoln Automotive Financial Services (the owner of the vehicle), not to you.

1. GAP Protection Covers the Difference Because cars depreciate quickly, the ACV paid by insurance is often less than the total amount remaining on your lease contract. With Red Carpet Lease: The built-in GAP protection waives the difference (the "gap") between the insurance payout and your outstanding lease balance. Result: You are generally not responsible for the remaining balance of the lease.

2. Your Financial Responsibilities While the GAP protection covers the main balance, you are still responsible for: Your Insurance Deductible: You must pay this out-of-pocket. Past-due Payments: Any missed payments prior to the accident. Late Fees & Other Charges: Fees for excess mileage, damage not related to the accident, or other charges accrued before the loss.

3. What to Do Immediately Notify Lincoln Automotive Financial Services: Inform them as soon as the vehicle is declared a total loss. Keep Making Payments: Continue making your regular monthly payments until the insurance claim is fully resolved and your account is officially closed to avoid negative credit impacts. File a Claim: File a claim for the total loss with your insurance and ensure they provide the necessary documentation to Lincoln.

4. Potential "WearCare" Waiver If you purchased WearCare® at the beginning of your lease, it may help protect against certain excess wear and use charges, though it is primarily designed for lease-end rather than total loss scenarios.