If you’re thinking about getting a new vehicle like the 2018 Lexus ES 350, we applaud your taste in automobiles. Many drivers ask us about gap insurance when they’ve made the decision to buy or lease one of our luxury cars. While gap insurance is a smart purchase for some drivers, this type of coverage isn’t for everyone.
Gap insurance is designed to cover the difference between what your car is currently worth and what you owe on your automobile if it’s stolen and unrecovered or it’s totaled due to an accident or theft. This kind of coverage differs from your standard car insurance by paying what that policy won’t. Your standard insurance will only pay up to the current market value of your automobile if it’s destroyed.
If you have a car loan and cannot comfortably pay the gap between your loan balance and your car’s current value if something happens to your vehicle, buying gap insurance is a good idea. If you put down less than 20 percent when you bought your automobile, you may want to buy gap insurance. If you financed your vehicle for five years or longer or you think your car will depreciate at a rate that’s higher than average, getting gap insurance is a wise move.
When you lease a car, your contract may include a provision that requires you to carry gap insurance. If you don’t have an auto loan or you have the resources to pay out of pocket if your vehicle is totaled, there is no reason for you to purchase gap insurance.
To learn more about gap insurance or to find a Lexus car you want to have in your driveway, visit our Lexus dealership near Fruit Cove, FL. We look forward to seeing you behind the wheel of your dream vehicle at Lexus of Orange Park soon.