What was the reason that the insurance company gave you for not paying? I would think that you pay the deductible (say $250) and they would pay the rest. If they have a valid reason for not paying, how about your homeowners comprehensive insurance? Umbrella policy? This isn't right (like you need me to tell you that) and won't you get $crewed when you turn it in at the end of the lease? Have you had the folks you are leasing it from (Chrysler?) call the insurance company? Maybe they would have better luck or be able to apply more pressure.