After an insurance company refuses to insure you, you will be eligible to apply for coverage through the Massachusetts Auto Insurance Plan, also known as MAIP. To get MAIP coverage, you'll need to use an insurance agent. That insurance agent will ask you to fill out an application for the MAIP. Then, the MAIP will randomly assign you to an insurance company.
The price you receive from MAIP may or may not be higher than the price you could have received if you had continued to search for prices. If your car is financed and you are required to have insurance for additional expenses, make sure you have a current replacement insurance policy before canceling your reservation. To find an agent to represent the insurance company you want to get a quote from, call the insurance company or visit their website. For the most part, Gap insurance is an optional supplement to auto insurance coverage that will pay the difference between the full value of the car and the outstanding balance of the owner's loan or lease.
For more information, see WalletHub's tips on whether coverage insurance is worth taking out and where to buy it. 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. Independent insurance provider Gap Direct sells policies regardless of how old the car is, for example. However, like car dealerships, other lenders often calculate the cost of supplemental insurance as a down payment and then add the sum to the amount of the loan.
The best supplemental insurance is that of Travelers, The Hartford and Liberty Mutual, depending on factors such as cost and maximum payment amount. In short, as long as you're willing to check with multiple insurers, you can get supplemental insurance after buying a car. You can cancel Liberty Mutual Gap insurance once your car is worth more than your loan or lease balance. Because compensation insurance pays the difference between the actual cash value (ACV) of a car and the balance of its loan or lease, compensation insurance payments are generally sent directly to the landlord or lender.
You should keep in mind that while some agents can get quotes from many insurance companies, others can only get quotes from one or two insurance companies. Since emergency insurance covers the difference between the actual cash value of the car and the amount owed, researching these two figures will be a key factor in deciding if it's worth taking out emergency insurance. 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. 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.