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Best Cheap Gap Insurance Companies in Minnesota: Quotes, Discounts (2023)
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It can be difficult to fully understand all the different types of auto insurance you may need. In addition, the amount and type of auto insurance you need will vary depending on your location and your unique situation. So let's look at gap insurance specifically and talk about the ins and outs and whether you will need this type of auto insurance coverage if you live in Minnesota.
Drivers in Minnesota are looking for the best value in car insurance. So why not use Insurify to score free auto insurance quotes and compare coverage options? It’s so simple and only takes a few minutes.
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Table of contents
- Best Companies for Gap Insurance in Minnesota
- What is gap insurance?
- Who should buy gap insurance in Minnesota?
- Minnesota Gap Insurance Laws
- How much gap insurance do I need in Minnesota?
- How Gap Insurance Works in Minnesota
- How Much Gap Insurance Costs in Minnesota
- How to Buy Gap Insurance in Minnesota
- Frequently Asked Questions: Gap Insurance in Minnesota
Best Companies for Gap Insurance in Minnesota
How much is gap insurance in Minnesota?
The average cost for a car insurance policy with a gap insurance add-on in Minnesota is $171 per month, which is significantly less expensive than the national average of $289 per month. Keep in mind that you will probably pay more for gap insurance if you purchase coverage from a car dealership.
If you've determined that you are a good candidate for gap insurance, you will want to find an insurer that offers comprehensive coverage at a fair price. Here are some of the cheapest auto insurance providers for leased cars in Minnesota to help you get started.
| Insurance Company | Average Monthly Cost for Leased Cars in Minnesota |
|---|---|
| Midvale Home & Auto | $142 |
| Travelers | $144 |
| Safeco | $150 |
| Nationwide | $150 |
| Liberty Mutual | $193 |
| Bristol West | $258 |
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.
See More: Cheap Car Insurance in Minnesota
What is gap insurance?
“Gap” is an acronym for guaranteed asset protection. Gap insurance is intended for drivers who total their vehicles in an accident and owe more than the car is worth. Gap insurance covers the physical damage part of your auto insurance policy (comprehensive and collision).
The insurance company will only pay out the vehicle's actual cash value, so this is where gap insurance comes in. It fills in the "gap" if you have a total loss and pays the lender the difference between what the insurance company pays and what you still owe on the vehicle.
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Who should buy gap insurance in Minnesota?
When considering whether gap insurance is a good idea for you, there are a few key considerations to keep in mind. First, gap insurance may make sense for you if:
Your lender requires it.
You’re leasing your vehicle.
You financed your vehicle loan over 60 months or more.
You put less than 20 percent down on your car (or didn’t make a down payment at all).
Your loan has a high interest rate.
You rolled over negative equity from your last auto loan.
You’re driving a luxury vehicle or other high-value vehicle that depreciates faster than a standard car.
Minnesota Gap Insurance Laws
Gap insurance is available in Minnesota, but it is not required by law. According to Minnesota insurance statutes, a creditor may offer gap options paid for in a single payment or a monthly payment plan. If you choose not to purchase gap insurance, you will be required to sign a guaranteed asset protection waiver that is included in the finance agreement.
How much gap insurance do I need in Minnesota?
You only need gap insurance if you owe more to the finance company than the car is worth. How much gap insurance you need is the difference between what you owe and how much the vehicle is worth.
See More: How Much Car Insurance Do I Need?
How Gap Insurance Works in Minnesota
When you finance your new car, either through your bank or a car dealership, you'll likely be offered gap insurance along with other types of coverage like roadside assistance while completing the paperwork. Gap insurance will pay off the balance still owed on the vehicle after your insurance company has paid its part if your car gets totaled.
The insurance provider pays the lender the market value of the vehicle after processing your claim minus your deductible (the dollar amount you pay up front in a claim). If the insurance company's payment does not cover what you owe on the vehicle, your gap insurance will pay the lender the difference.
How Much Gap Insurance Costs in Minnesota
The average cost for car insurance that includes gap insurance in Minnesota is $171 per month, which is less than the national average of $289. Compared to the lowest price for gap insurance of $122 in New Hampshire and the highest cost for gap insurance of $495 in Michigan, Minnesota falls on the lower end.
If you own an older vehicle and you don’t owe much on your loan balance, then you may not need to purchase gap insurance. However, if you have a new vehicle financed for a long term (more than 48 months), gap insurance may give you peace of mind, especially if paying off the car will cause a financial burden for you after a total loss.
How to Buy Gap Insurance in Minnesota
You can buy gap insurance in the state of Minnesota by buying it from the dealership during your vehicle purchase, where it will be added to your loan payments, or by adding it to your insurance policy.
If you are a Minnesota driver, you are better off using Insurify to compare car insurance quotes and policies to find the best deal on gap insurance that will satisfy all your requirements. No matter whether you live in St. Paul, Minneapolis, Duluth, or Mankato, Insurify can help you find the best deal on auto insurance.
Frequently Asked Questions: Gap Insurance in Minnesota
Minnesota law does not require gap insurance. However, Minnesota insurance statutes state that it may be offered to customers financing a vehicle.
Yes, if you pay your car loan off early, the insurance company will send you reimbursement for the amount of the unearned premium. For example, if you pay your car off in 24 months instead of the 48 months it was financed for, you should receive two years’ worth of gap premium back. This only applies if you pay all your premiums up front.
Gap insurance can be purchased when you purchase your vehicle from the dealership or added to an auto insurance policy. If you are looking for auto insurance in Minnesota, you can find cheap auto insurance with the easy-to-use Insurify car insurance comparison tool.
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Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers' vehicles, driving records, and demographic information. Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.
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