Below is a list of the auto insurance companies we've analyzed based on cost, coverage, availability, reputation, and customer experience categories. It's also worth noting that you're unlikely to need term insurance for a car that's more than a few years old, since this insurance is designed to cover the difference between the actual cash value (ACV) of a car and the balance of a loan or lease. Your lender or landlord could lose money on your loan or lease if you pay off your car in full without provisional insurance and can't pay the remaining balance after other insurance payments. If you don't have car insurance, compare quotes from the major insurance companies that offer supplemental insurance.
On the other hand, drivers cannot get a refund from provisional insurance if the insured car is declared a total loss before the expiration date of the policy. In addition, many companies offer new car replacement services, which pay the difference between the full value of a vehicle and the cost of buying a new car of the same make and model. Therefore, some lenders and landlords will require provisional insurance to cover the difference between the full value of the car and the balance due. You can buy separate expense insurance from many dealerships and lenders when buying or leasing a new car.
The Guides Auto team has reviewed the best car insurance companies and will compare the top 10 car insurance companies in detail. Independent insurance provider Gap Direct sells policies regardless of how old the car is, for example. On the other hand, if your down payment is large enough or the resale value of the car is high enough that you never owe more than the car is worth, compensation insurance isn't necessary. Gap insurance covers the difference between the balance of a car loan or lease and the actual value of the vehicle in the event of theft or a declaration of total loss.
In short, as long as you're willing to check with multiple insurers, you can get supplemental insurance after buying a car. However, Liberty Mutual Gap insurance is still a good option for drivers who already have their auto policy with the company. For example, auto loans made with State Farm Bank include a free additional clause called “Payoff Protector,” which works the same way as additional expense insurance. Yes, you can take out term insurance at any time before a car loan or lease is canceled, but only with some coverage insurance providers, since others will only sell coverage to the first owner of a car whose model is newer.
