Is Gap Insurance Necessary if I Buy a Pre-Owned Car?

 

Whenever you’re looking for a new Porsche car for sale like the 2018 Porsche Macan or the 2019 Porsche 911, you may overhear people talking about gap insurance. While that may seem normal, you should know that gap insurance should be on your mind when you’re shopping for a pre-owned vehicle as well.

Gap insurance is a kind of car insurance that’s meant to do one thing. And that thing is to cover the difference between what your standard car insurance policy pays you and the balance on your auto loan if your vehicle is stolen and remains missing or your automobile is totaled.

Because you can finance a pre-owned vehicle, you may want to get gap insurance to avoid having to pay anything out of pocket if either of those things happens to your automobile. Gap insurance is often something drivers will buy if they put less than 20 percent down when they bought a vehicle or they financed their purchase for 60 months or longer.

Motorists who purchased an automobile that will depreciate quickly typically buy gap insurance as well. If you carried over negative equity from a previous loan into your current car loan, it’s usually advisable to get gap insurance regardless of whether your buy a new or previously owned car.

When you visit our Indianapolis, IN Porsche dealership to look through our pre-owned car inventory, you’ll see that we have many attractive previously owned Porsche models, such as the Porsche Macan. Once you find the specific model you want to buy, we’ll help you figure out if you should purchase gap insurance.

To learn more about gap insurance and to see if it’s wise for you to purchase this kind of coverage, visit Tom Wood Porsche to talk to our sales and finance experts today.

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