In a blog post we shared last fall, we provided tips for creating a car budget. If you’re making a budget to buy or lease one of the new Porsche cars in our showroom, we encourage you to think about whether you need to dedicate funds for gap insurance.
Gap insurance is a type of car insurance that’s different from your standard policy. If your automobile is stolen and remains unaccounted for or it’s totaled, your regular auto coverage will reimburse you in an amount that’s equal to your car’s current market value. While that’s great, it might not be enough to cover the balance on your auto loan.
If the money you receive from your insurer isn’t enough for you to settle your loan, you’ll have to pay the difference out of pocket. Drivers who have gap insurance don’t have to worry about doing that, however. That’s because gap insurance covers the difference between what the vehicle is worth and what is still owed.
Although gap insurance may sound like a must-have type of coverage, it’s not for everyone. If you own your automobile outright or you can comfortably pay off your loan’s balance, you most likely don’t need gap insurance.
If you lease an automobile from our premier Florida Porsche dealership, you may be required to obtain gap insurance. You may also want to opt for this coverage if
- You financed a vehicle for 60 months or more
- You rolled a previous loan into your current auto loan
- You didn’t put much down when you bought your car
- Your vehicle is expected to depreciate faster than average
To learn more about gap insurance and whether you should consider it, visit Porsche Jacksonville today!