Is Gap Insurance Worth It for Luxury Cars?

When you purchase a brand new Porsche or Mercedes-Benz vehicle, all you want to do is get out on the road and drive. But, it’s important to cover your bases. While most Yonkers and New Rochelle drivers know all about comprehensive insurance and extended insurance, but what is gap protection? Is gap insurance worth it for luxury cars? Gap insurance covers the “gap” between your vehicle’s value and your current loan balance, which is a huge asset for luxury car owners. Pepe Auto Group is here to tell you why, and we have even more car shopping tips for you at our finance center!

What is Gap Insurance On a Car & What Does It Cover?

Gap insurance – also called Guaranteed Asset Protection – covers the difference between the cash value of your vehicle and the amount you still owe on it. This can apply to either loans or leases. What does gap protection do for you? You are financially protected against the following scenarios of total loss:

• Theft
• Fire
• Vandalism
• Accident
• Acts of nature (tornado, hurricane, flood, etc.)

Do I Need Gap Insurance?

Gap insurance is considered optional, but many Stamford drivers consider it well worth the investment. Not only will gap insurance protect your assets, but it also protects you from potential financial calamity. Here are a few reasons why you should consider adding it to your coverage plan:

• Vehicle depreciation happens the moment you drive off the dealership lot, which puts you at risk for being underwater.
• Car prices are also higher than ever before, which can make the “gap” between your car’s value and balance even bigger. This can put you at greater risk.
• Accidents are unpredictable. You might never have an accident, or it could happen the day after you get your car.
• Most insurance companies will only cover what your vehicle is worth at the time of the accident.
• Luxury cars are at risk for theft and vandalism, both of which are covered under gap insurance.
• Gap insurance is a relatively low-cost insurance coverage plan. The added cost is negligible compared to the added peace of mind you’ll feel.

How Do I Buy Gap Insurance?

If you’ve decided that gap insurance is right for you, you have several ways to sign up.

• Auto Insurance: Many auto insurance companies offer insurance for as little as $20 per year.
• Dealerships: Both dealerships or car-loan companies often offer gap insurance as part of their vehicle insurance coverage package.
• Specialty Insurance: Some specialized car insurance companies offer gap insurance for a one-time fee.

Learn More About Gap Insurance for Your Car

Whether you have more questions about gap insurance or you’re ready to upgrade to a new luxury vehicle, the team at Pepe Auto Group is at your service. Contact us with your questions or stop by White Plains. We’d be happy to help. For more helpful reads, review our guide to Porsche accessories!