What can Gap Insurance do to help protect your Porsche?
In the unfortunate event of your Porsche being written off or stolen, your Gap Insurance will top up your comprehensive motor insurers settlement payment (which will always be based on your Porsche's valuation on the day it is written off) and depending on the type of cover you chose, either return you back to the original invoice price you paid, pay you the replacement cost of your Porsche or pay the total amount you have outstanding on your finance agreement.
Please consider the following facts:
An estimated 600,000 vehicles are written off in he UK each year.
The average vehicle can depreciate by up to 50% in the first three years.
Your comprehensive insurer will only ever pay you the market value of your Porsche at the time it was written off or stolen. Based on current rates of depreciation this could mean that you could be left having to fund a vehicle you no longer have or having to dig deep into savings to buy another vehicle.
What level of cover can Vehicle Replacement Gap Insurance provide for your Porsche?
Vehicle Replacement Shortfall Gap Insurance can provide you with protection against any possible increase in the invoice price of your Porsche.
Vehicle Replacement Gap Insurance will pay you the difference between your Porsche's valuation on the day it is written off or stolen and the amount of money you need to purchase your original Porsche model again, taking into account any increase in its invoice price. You will be awarded the correct amount of money to be able to purchase your Porsche again, same age, milage etc, if your own Porsche was not available then you would be awarded with the amount necessary to purchase the superseding model.
You can then choose to do with your money as you please, purchase another Porsche or take care of any outstanding finance, if you acquired your Porsche through a finance agreement and then do with the funds in the middle what you see fit.
Please see the example below which we have designed to assist you with your understanding:
Brad pays £40,000 for his Porsche Boxster. Three years later, it is written off as a result of a motoring accident. Brad receives £20,000 from his comprehensive insurer, given that this was the market value of the Porsche at the time it was written off. To make matters worse, Brad is informed that the invoice price of his Porsche model has increased by £5,000.
Without any level of Gap Insurance, Brad will have no option but to use his own savings in order to purchase another vehicle and/or to pay off any outstanding finance.
Vehicle Replacement Gap Insurance will top up the motor insurer's valuation with the £25,000 that is necessary to be able to purchase the same standard of Porsche again. This leaves Brad able to purchase another Porsche, or if his Porsche was acquired through finance, to clear any outstanding payments, then spend the remaining amount how he sees fit.
What can Return to Invoice Gap Insurance do for you and your Porsche?
Return to Invoice Shortfall Insurance will sit on top of your motor insurance and in the case of your Porsche being declared a total loss, will top up your motor insurer's valuation (the amount your car is now worth) to take you back to the amount you originally paid for your Porsche.
You will then be standing in the same financial position as you originally were, with the same amount of money that you originally spent to do with as you wish. If you acquired your Porsche through a finance agreement then you can clear any outstanding payments and then the amount in the middle is yours to do with as you see fit.
Please see the example of Brad and his Porsche which we hope will help you understand how Return to Invoice can protect your Porsche:
Brad pays £40,000 for his Porsche Boxster. Three years later, it is written off as a result of a motoring accident. Brad receives £20,000 from his comprehensive insurer, given that this was the market value of the Porsche at the time it was written off.
Without any level of Shortfall cover, Brad will now have to use his own savings to purchase another vehicle and/or clear any outstanding finance.
Shortfall Return to Invoice Insurance will top up the £20,000 motor insurer's valuation with a further £20,000, to take Brad back to the amount his Porsche was originally worth. He is now standing in the same financial situation as he originally was, with the funds to do with as he wishes. If there is any outstanding balance he can clear it and now has the remaining amount of money to do with as he sees fit. Shortfall will never tell you how to spend your money, you could use it to put towards another Porsche vehicle, or in any way that you see fit.
What can Finance and Contract Hire Gap Insurance do for your Porsche?
Finance and Contract Hire Gap Insurance sits on top of your motor insurance and is designed solely to allow you to walk away from a financial agreement, with no financial liability, if your Porsche is declared a total loss. Finance and Contract Hire Gap Insurance, quite literally if your car is ever written off will simply pay any outstanding balance that you have on a finance agreement, leaving you to walk away in the same financial position as you were in originally.
Please see the below example to help you understand how Finance and Contract Hire Gap Insurance works:
Brad takes out a four year finance agreement on his Porsche Boxster. Three years later, Brad awakes to see his Porsche has been stolen.
The comprehensive insurer pays the market value of his Porsche at the time it was stolen. However, even after this settlement payment has been paid, Brad still has £10,000 left outstanding on the finance agreement which he is legally bound to pay.
Without any level of cover, Brad will have no option but to use his own savings to be able to pay this £10,000 that is still outstanding, which can legally be demanded of him, within 28 days.
Shortfall Finance and Contract Hire Gap Insurance will pay the outstanding £10,000 to the finance company, leaving Brad to walk away from the situation with no financial liability.
Industry experts say that the average vehicle can depreciate by up to 50% within the first three years. To put this into context, it is very likely that your Porsche will lose as much as half of its original value within the first three years.
We believe it is extremely important to inform drivers of how significantly their vehicles can depreciate so that they know all the facts and can make the correct decision about what type of Gap Insurance policy is suitable for them.
Please see these recent figures from 'What Car', who provide historical and current Porsche data in order to predict what your Porsche can be worth in one, two, three and four years time.
Example 1 –
Porsche Panamera Hatchback 3.6 V6 PDK 5dr
Invoice price you paid - £62,134
Year 1 – £44,786
Year 2 – £36,827
Year 3 – £30,234 – You will see that within the first three years, your Panamera model has lost £31,900
Year 4 – £25,823 – You will see that within the first four years, your Panamera model has lost £36,311
Example 2 –
Porsche Boxer Open 2.7 2dr
Invoice price you paid - £37,589
Year 1 – £32,774
Year 2 – £27,226
Year 3 – £22,625 – You will see that within the first three years, your Boxster model has lost £14,964
Year 4 – £19,576 – You will see that within the first four years, your Boxster model has lost £18,013
Example 3 –
Porsche 911 Cabriolet 3.8 Turbo S 2dr
Invoice price you paid - £133,553
Year 1 – £91,324
Year 2 – £75,818
Year 3 – £63,010 – You will see that within the first three years, your Cabriolet model has lost £70,543
Year 4 – £54,583 – You will see that within the first four years, your Cabriolet model has lost £78,970
Example 4 –
Porsche 911 Cabriolet 3.4 Carrera 2dr
Invoice price you paid - £82,072
Year 1 – £63,466
Year 2 – £52,690
Year 3 – £43,785 – You will see that within the first three years, your Cabriolet model has lost £38,287
Year 4 – £37,934 – You will see that within the first four years, your Cabriolet model has lost £44,138
Example 5 –
Porsche Cayenne 4x4 3.0 V6 S Hybrid 5dr
Invoice price you paid - £60,506
Year 1 – £42,384
Year 2 – £35,184
Year 3 – £29,237 – You will see that within the first three years, your Cayenne model has lost £31,269
Year 4 – £25,340 – You will see that within the first four years, your Cayenne model has lost £35,166
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The brand new Carrera 911 GTS from Porsche officially goes on sale.
Porsche have revealed their brand new Cayenne GTS model ahead of its public debut this month at the Los Angeles motor show.
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Porsche Automobil Holding SE is a German automobile manufacturer, which was founded in 1948. The history of Porsche dates back to its founder and avid car enthusiast Ferdinand Porsche, who was a well-known figure in the European automobile industry. Ferdinand was well respected throughout Germany and was commissioned by the German Government, under Adolf Hitler to design an affordable, family car for the Germany people. He worked with fellow automaker, Volkswagen to form the Volkswagen Beetle, which is one of the most successful car designs of all time.
During the Second World War, Ferdinand continued to work in partnership with Volkswagen, and both were heavily involved in the process of designing and manufacturing tanks for the German war effort, most notably the infamous Tiger Tank. In 1945, the British occupation took over Volkswagen and Mr Ferdinand, who was a senior manager was removed from his post and later arrested for war crimes. He wassent to jail in France for 20 months. Ferdinand’s son, Ferry Porsche took over the company and would successfully prevent the company from entering bankruptcy.
The first car to bear the Porsche name was the 356 model in 1948, which would be the company's founding year. The 356 was also actually built in Austria. In 1953, the 550 Spyder model was introduced to compete against the likes of Ferrari, Jaguar, Maserati and Aston Martin. In 1956, the company built its 10,000th car, which was amazing considering the company was only eight years old. This was increased to one million in 1996.
However it was not until 12 years after his father’s death, when Ferry Porsche would introduce the, well known, successful 911 model in 1964.The company logo of Porsche is based on the coat of arms of the Free People’s State of Wurttemberg, which is part of the Stuttgart region. The current Porsche portfolio consists of the following successful models: Boxster, Cayman, 911, Panamera, Cayenne.