After purchasing a newer car, many drivers opt for comprehensive car insurance under the impression that their policy will pay off the balance of their auto loan if the vehicle is lost or destroyed. Unfortunately, that is not the case, which many drivers only discover when their insurance settlements are not enough to settle their debt. Jenkins & Bevan Insurance, an independent agency based in Amherst, OH, explains what gap insurance is and why it's important for those who own new or high-value vehicles.

If your car is destroyed in an accident or stolen, the insurance carrier may decide that it's a total loss and pay you the fair market value for your vehicle. Unfortunately, this amount is usually enough to replace the vehicle, which may cost much less than the original purchase price of the car, and even less than what you still owe if you haven't had the vehicle for very long or if it depreciated rapidly.

To help you avoid this unfortunate situation, many insurance carriers offer gap insurance, which is an optional extension to your car insurance policy that fulfills your obligation to pay the difference between the loan amount and the insurance settlement. This type of insurance is so critical that many lenders will require that you carry it if you financed your vehicle with an auto loan.

If you're unsure whether you need gap insurance, let the experts at Jenkins & Bevan Insurance perform a thorough review of your situation to identify your car insurance needs. With their wide network of insurance carriers, they'll be sure to have a policy that’s perfect for you. To learn more and to request a quote, just visit their website or call their office at (440) 984-6771 today.