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Do I need gap coverage for my Tesla?
I am about to get my new Tesla delivered and have decided to upgrade to the Full Self-Driving capability. I am paying for this upgrade in cash. I read recently that this means my car will not depreciate as others do once I start driving. Does this mean I don't need gap insurance?
Shannon Martin · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
That is a great question! And the answer is … it depends.
Currently, it does look like the values of
Teslas
are increasing rather than decreasing over time. However, no one knows how long this may last. And it can depend on where in the country you live for this to be true. Gap insurance
is a good coverage to have, but not everyone needs it. It pays the difference between the loan and the vehicle’s actual cash value at the time of a claim when a car is totaled. So if you were to total your car tomorrow, then no, gap insurance most likely wouldn’t kick in. However, if you plan to keep your car for several years, its value will likely go down. Depending on the length of your loan and how accident-prone you are as a driver, gap coverage may be a good idea to add to your
car insurance
.View full answer
- Gregory R.
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