If you're preparing to buy a new vehicle, then you're going to need to obtain an auto loan, vehicle insurance, and gap coverage. While your auto insurance focuses on your vehicle, gap coverage works to protect your pockets. Find out exactly what it is and why it's important as well as where to buy it, below.

Why Is Gap Auto Insurance Important?

When you buy a vehicle, its price is based on its current market worth, but its value begins depreciating the older it gets. Unfortunately, the balance of your auto loan probably isn't reducing as fast as your car's worth. If you're involved in an accident, and your vehicle is damaged beyond repair, then your auto insurance will only pay out its current value and not the full amount you owe on the loan.

This is where gap insurance comes into play. Gap coverage is designed to cover what's left over on your loan after you've received your car insurance payout. By investing in this protection when you buy your vehicle, you can avoid a hefty financial burden from the large out-of-pocket costs to cover the remainder of your loan.

Why You Should Purchase Gap Coverage From Your Car Insurance Provider

There are two primary ways to purchase gap coverage: Through your dealer or your insurance provider. While it may seem convenient to simply buy it from your dealer at the time you buy your vehicle, it can actually cost you far more than the alternative. If it's lumped into your auto loan, you'll end up paying interest on your gap insurance which drastically increases the amount you'll pay over the course of the loan.

Many individuals choose to buy it from their dealer solely because they want to avoid paying for the full cost of the coverage out of pocket. However, you can purchase a policy from your car insurance provider and pay for it in small monthly increments. You also avoid paying interest, so you can reduce your overall costs.

Protect your vehicle and your pockets with quality gap auto insurance from Jenkins & Bevan Insurance in Amherst, OH. Since 1954, the full-service insurance agency has been the first-choice of Lorain County residents for their friendly and personalized service. From auto and home to life and business, the team will work to find you a policy that matches your circumstances. Request your quote today by calling (440) 984-6771, or learn more about the insurance companies they work with by visiting them online.