When you drive home your refined and exhilarating new Jaguar vehicle, you want to make sure you protect your investment financially. Here at Jaguar Peabody, our helpful team over at our Jaguar finance center is always willing to give you expert guidance when it comes to your most important decisions, including whether or not gap insurance is a good choice for you.
Why You Might Need Gap Insurance
There are already plenty of great car insurance plans to consider that can come in handy in case tragedy strikes. Gap insurance is an additional plan that is often incredibly helpful with a lot of new car purchases these days. This is due to the fact that car payment terms are becoming longer than they typically have been in the past, often extending five or six years. This is very helpful when it comes to making new car purchases accessible, but it also creates a unique problem for some car-buyers.
For all the benefits of buying a new car, one drawback is that any new car will rapidly depreciate in value initially. If you choose a long repayment term, this can create a significant period of time where the value of your car will actually be less than what you still owe in payments.
Standard car insurance plans will only compensate you the current value of your car in the event it gets totaled, which can leave you still owing your lender the “gap.” A gap insurance policy will cover you for that gap so you can quickly find a new car of the same value. Gap insurance policies are a good investment if you have a long finance term since they are generally affordable and will take a load of stress off your shoulders if you end up needing it.
Contact or visit our Jaguar dealer near Newton today to learn more about the benefits of gap insurance.