GAP Insurance

[Rob********]

Hi, did anyone take out any Porsche GAP insurance, or any third party equivalent, when picking their car up?

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[Fish Fingers]

https://www.taycanforum.com/forum/threads/gap-insurance.10969/

https://www.taycanforum.com/forum/threads/gap-insurance-for-taycan-rwd-ya-or-nope.12061/

 

[RGBArgee]

Hi, did anyone take out any Porsche GAP insurance, or any third party equivalent, when picking their car up?

Nope! I always ask myself how many cars have I lost through theft or total right off in the last 50 years? = zero . How much is the annual cost? General insurance covers the loss in the main. Or have I missed something?

 

[WuffvonTrips]

Even before used values recently dropped/corrected, I thought a few hundred quid a year for up to £50k to RTI for 3 years was worth it for me, for what is potentially high impact and maybe not as low probability of write-off as non-EVs.
EDIT for context- I purchased my car outright, no finance.

 

[Gfada008]

Nope! I always ask myself how many cars have I lost through theft or total right off in the last 50 years? = zero . How much is the annual cost? General insurance covers the loss in the main. Or have I missed something?

GAP insurance is only handy if your remaining car loan is more than the fair market value of your car in the event of a total loss accident or theft. As a personal injury attorney, I've seen a lot of situations where lack of GAP insurance left the client with a massive property damage liability owed to the bank.

 

[RGBArgee]

GAP insurance is only handy if your remaining car loan is more than the fair market value of your car in the event of a total loss accident or theft. As a personal injury attorney, I've seen a lot of situations where lack of GAP insurance left the client with a massive property damage liability owed to the bank.

I don’t think you in the UK, not sure that would happen here. Not bothering and no car loan but reckon I’m £15k in profit.

 

[Gfada008]

I don’t think you in the UK, not sure that would happen here. Not bothering and no car loan but reckon I’m £15k in profit.

I'm in USA but GAP insurance is relevant regardless of where you live (UK, Somalia or down under) if you took out a loan to buy your car and the remaining note is more than your car's current value. If you paid cash or you have profit of $1 or $15K why bother responding?

 

[PCASSOO]

I actually sell Warranties and Gap Insurance to Car Dealership's.
The only time you should buy Gap insurance is if you are not putting down a large deposit fir the loan. If your financing the whole loan then you should definitely buy Gap insurance.
A good rule of thumb is if you owe 50% or more on the loan you should buy Gap.
If you owe less than 50% of the loan you should be good depending on how many goodies your buying and adding to the loan.
That's just a basic way of looking at it and still protecting yourself.

 

[tchavei]

I had to Google what gap insurance is, not going to lie.

My insurance policy assures no car depreciation in the first 3 years meaning that at 2.9 years of insurance, the car is worth more stolen / totaled than sold (makes you have dark thoughts). I took it as it was part of the insurance and didn't change the yearly premium (€1.2k/year). I think that's probably similar to gap albeit I paid the car in full. No loans.

 

[Gfada008]

I had to Google what gap insurance is, not going to lie.

My insurance policy assures no car depreciation in the first 3 years meaning that at 2.9 years of insurance, the car is worth more stolen / totaled than sold (makes you have dark thoughts). I took it as it was part of the insurance and didn't change the yearly premium (€1.2k/year). I think that's probably similar to gap albeit I paid the car in full. No loans.

So if you don't have any car loan / paid the car in full when you bought the car, there's no need for Gap insurance. Gap Insurance is primarily for the interest of the lien holder of your car's title to ensure that the entire outstanding loan owed them (the bank) is completely paid off in the event of a total loss or theft. Essentially, the car owner has two automobile insurance policies/ 2 insurance premiums: (1) the basic policy which covers the current resale value of the car and (2) the gap insurance which covers the gap if the resale value doesn't cover the entire remaining loan. Sorry for the long write up.

 

[xyeahtony]

i usually put a big enough downpayment on my cars where gap insurance isn't really needed or a concern. But for anyone with progressive, they offer their own gap insurance for cheap.

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