This insurance protects your vehicle if it is damaged by another driver who does not have insurance or who does not have adequate insurance. If you didn't buy supplemental insurance from your regular insurance company, you could have bought it from the dealer, bank, or credit union that provided you with a loan or lease. If you don't have car insurance, compare quotes from the major insurance companies that offer supplemental insurance. For example, you might need supplemental insurance if you made a low down payment for a vehicle with a large loan, if your car depreciates quickly, or if you're financing your car with a long-term loan.
Each insurance company determines their rates differently, so while Liberty Mutual is among the cheapest car insurance companies, the only way to confirm that you've found the lowest price is to compare quotes from several companies. If you need an insurance reimbursement for additional expenses because you are selling or redeeming the car, be sure to wait until the car no longer legally belongs to you before canceling your additional expense insurance insurance. If your insurance company doesn't offer term insurance and you decide to buy it through a dealer or lender, keep in mind that interest will be charged on your premium if included in the balance of the loan or lease. However, the best option is to take out a full-coverage policy, which includes collision insurance and comprehensive insurance, so you know that at least the actual cash value of your used car will be reimbursed in the event of a serious accident.
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. 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. Dealership Gap insurance is more expensive, partly because it's added to your monthly car payments, so you'll pay interest on it. Collision and comprehensive coverage will pay up to the actual cash value (ACV) of the car if it's a total loss, and then the compensation insurance pays what you still owe.
Gap insurance is designed to protect you when you owe more on a loan or lease than a car is actually worth. You can cancel Liberty Mutual Gap insurance once your car is worth more than your loan or lease balance. For example, if you paid a small down payment for your car, the term of your loan is 4 to 5 years, or your car will depreciate quickly, you should consider taking out insurance to cover additional expenses. In addition, emergency insurance is specifically designed for drivers who still owe the balance of their vehicle, so if you are the full owner of your car and have full coverage, you don't need breach insurance.