Buying a Porsche is usually one of the boldest purchases you can make. Whether you’ve gone for a 911, Macan, Cayenne, or Taycan, it usually means you’ve spent a wedge of cash on a car you’ve always dreamed of owning. Return to invoice GAP insurance may be able to make the purchase seem a little less…scary.
Porsche absolutely oozes racing DNA. Driving it for the first time may be one of the most exciting experiences of the year. That’s the fun part. It can all come crashing down if the Porsche is suddenly written off or stolen and not recovered. Talk about killing the mood.
That’s where return to invoice GAP insurance for Porsche may be able to step in. Your comprehensive motor insurer will usually settle based on the market value of the car at the time of the incident, not what you originally paid for it. Due to the effect of depreciation, you’ll probably be left with a financial shortfall.
Porsche GAP insurance is designed to help with that shortfall, depending on the type of policy you choose and the policy terms. If you have bought your Porsche outright, or you simply want to protect the amount you originally paid, Return to Invoice GAP insurance may be worth a look.
What is Return to Invoice GAP Insurance For Porsche?
Return to Invoice GAP insurance is designed to cover the difference between the payout from your motor insurer and the original purchase price of your Porsche if the car is written off or stolen and not recovered. The payout from the motor insurer will be based on the car’s current market value, not what you paid for it. This is where the shortfall comes from.
The value of a Porsche can slide faster than you think. Let’s put some numbers on it. Let’s say you forked out £110,000 for your Porsche. A year later, the car was written off. This is a heartbreaking situation that can lead to a financial shortfall. The car is currently valued at £92,000, leaving you with an £18,000 shortfall because of depreciation.
Return to Invoice GAP insurance may help cover that gap, subject to the policy terms, limits and eligibility.
Why Porsche Drivers may Consider GAP Insurance
Porsches are just not your average car. The car is oozing with racing DNA, reeks of high performance, and is simply one of those luxury items that go above and beyond. Even second-hand models can make the eyes water.
No matter how classy your Porsche is, its 0-60 time can’t outrun depreciation. It hits hard. Cars lose around 15-35% of value in the first year alone. With a higher purchase price, the monetary value of depreciation on a Porsche is a lot more significant. It may sting a little bit harder.
That is often why Porsche drivers look into GAP insurance in the first place. It is not always about panic. It is often about not wanting to take a big financial hit after spending a lot on a car they have worked hard to buy.
Is Return to Invoice GAP Insurance worth it for a Porsche?
Working out whether return to invoice GAP insurance is worth it depends on personal circumstances. If you’ve paid what you would class as a large sum and you feel like you would be financially stretched by a large shortfall after a write-off, then return to invoice cover may make a lot of sense.
On the other hand, if you’ve bought an older Porsche at a lower price or feel you would be comfortable to plug the financial shortfall yourself after a write-off, then you may decide that you do not need to get the extra cover.
Return to invoice GAP insurance is essentially a financial choice based on how much risk someone can afford to take, or how much risk they are willing to take.
Return to Invoice vs Return to Finance for Porsche Drivers
Many drivers decide to finance a Porsche. If this is the case, return to invoice may still be relevant. But if drivers are considering GAP, they tend to lean towards return to finance GAP insurance.
Return to Finance GAP insurance may be more suitable if the main concern is negative equity and remaining finance balance. If the aim is to protect your original purchase price, then return to invoice is better suited.
Can you get Return to Invoice GAP Insurance on a Used Porsche?
Yes, it’s possible to get GAP insurance on used cars. Eligibility will depend on the car, its age and mileage, and the policy’s terms.
Many drivers don’t consider GAP when buying a second-hand car because the original purchase price is often lower, and depreciation is slower. This means it is less likely to be a significant shortfall if the car is written off or stolen and not recovered.
However, even second-hand Porsche models can be expensive, so some drivers will consider it.
What Porsche Models Can GAP Insurance Protect?
Most of Porsche’s modern models can be covered by our insurers, so we should be able to arrange a GAP quote for you regardless of your Porsche model. Popular models include the Porsche 911, Taycan, Panamera, and Cayenne.
What Return to Invoice GAP Insurance Does Not Cover
Porsche GAP insurance isn’t watertight cover for your entire car. It does not pay out on little dents, scratches, or bodywork damage from a small bump you’ve had at a junction. It does not replace the mandatory standard insurance.
GAP insurance is there for more serious situations. It will only kick in once the car is written off or stolen and not recovered.
When Should You Arrange Porsche GAP Insurance?
If you are a driver who wants GAP or is considering GAP, then it is best to act quickly. That is because depreciation kicks in the moment you sit in the car for the first time. It does not wait for you to get organised.
Expert Insight
“When you are buying a Porsche, the potential shortfall after a write-off may be far more noticeable than it would be on a lower-value vehicle. Return to Invoice GAP insurance is designed to protect against that by covering the difference between your motor insurer’s settlement and the original invoice price, subject to the policy terms. For drivers who want to protect their initial outlay, it can be a sensible thing to consider.”
Nick, Insureworks GAP insurance specialist
Wanting to Sort Used Porsche GAP Insurance?
Getting a quote for Porsche GAP insurance is quick and straightforward with Insureworks. There’s no jargon, and no faff. We will arrange cover quickly. All you need to do is answer a few questions about yourself and the vehicle.