Gap Insurance in North Carolina (2024)
Gap insurance protects you if you total your car and owe more on the loan balance than what it’s worth.
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Written byAthena Valentine Lent
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Athena Valentine Lent is a finance columnist for Slate and the author of Budgeting for Dummies (Wiley, 2023). Her writing has appeared in BuzzzFeed, The College Investor, GOBankingRates, Money Under 30, and Keeper Tax among other places. Her personal finance blog, Money Smart Latina, won the Plutus Award for "Best Personal Finance Content for Underserved Communities" in 2020 and was nominated for "Blog of the Year" in 2022. When not working she can be found with her main man, a polydactyl cat named Harrison George.
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Edited byAshley Cox
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7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Updated November 20, 2024
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Table of contents
Gap insurance is additional auto insurance that can cover the difference between the actual cash value of your car and the amount left on an auto loan for your totaled vehicle. If you have an auto loan or lease, you can benefit from purchasing gap insurance. Without this coverage, you’d have to pay out of pocket for a car you can’t drive anymore.
The national average for full-coverage insurance is $204 per month, according to Insurify data. A gap policy typically adds about $2 per month to your car insurance costs.
Here’s what you need to know about comparing car insurance quotes and purchasing gap insurance in the Tar Heel State.
Quick Facts
The state of North Carolina doesn’t require gap insurance coverage, but your lender might.
Gap insurance isn’t the same as new car replacement insurance.
Liberty Mutual, Allstate, and Nationwide offer some of the cheapest gap insurance coverage in North Carolina.
How gap insurance works
Gap, or guaranteed asset protection, insurance is a product you can buy from an insurance company or car dealership that covers the difference between your vehicle’s value and the remainder of your loan if you have an auto accident that totals your vehicle.[1]
If you total your car, your insurance company should reimburse you for the amount your vehicle is worth if you file a collision or comprehensive coverage claim. But if you’re financing your vehicle, the amount your car is worth will likely differ from the remainder of your loan if you have an auto accident resulting in total loss for your vehicle.
Good to Know
Depreciation hits a car as soon as you drive it off the lot, which is why gap insurance is important if you don’t want to owe an additional sum if something happens that’s out of your control.
Find Cheap Car Insurance in North Carolina
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What gap insurance covers in North Carolina
North Carolina gap insurance covers the difference between your vehicle’s actual cash value (ACV) — based on its current market price — and the amount you still owe on your car loan if you total your car or someone steals it. Gap insurance doesn’t cover medical bills incurred as a result of an accident or the replacement of another party’s vehicle.
Let’s say your current vehicle is worth $12,000 and you still owe your auto lender $15,000. If an accident totals your vehicle and you have collision insurance, your insurer will reimburse you $12,000. Gap insurance will kick in and pay the remaining $3,000 of the loan amount to cover both you and your auto lender.
A common misconception about gap insurance is that it’s too expensive or sold only through your lender. Gap insurance is affordable, and you can purchase it through your auto insurance company or a third-party company.
Best gap insurance companies in North Carolina
Not all insurance companies sell gap insurance, so make sure you look into coverage options when comparing multiple quotes. The three companies below have some of the cheapest car insurance rates in North Carolina, and they also offer gap coverage.
Liberty Mutual
| User Reviews | 3.7 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 7.7 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $59/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $183/mo |
3.7
A solid optionBased on 2671 verified guest reviews and ratings
How drivers feel about Liberty Mutual
Drivers appreciate the initial low prices, quick claims handling, and easy account access but dislike the significant price increases over time.
AI-generated from the text of verified reviews collected by Insurify
Best For
Numerous discounts
New and financed vehicles
Accident forgiveness
How drivers feel about Liberty Mutual
Drivers appreciate the initial low prices, quick claims handling, and easy account access but dislike the significant price increases over time.
AI-generated from the text of verified reviews collected by Insurify
Best For
Numerous discounts
New and financed vehicles
Accident forgiveness
Reviews (1,559)
Michael
November 19, 2024
Verified Review
Go Elsewhere
The customer service is poor. It's difficult to speak to a human as it's overly automated.
Deborah
November 12, 2024
Verified Review
Examine Every Inch of Your Policy
I didn't realize I didn't have accident forgiveness until my daughter had an accident. They tripled the cost of my policy.
Lee
November 12, 2024
Verified Review
Ugh!
The rates increase every year. I'm an excellent driver and I've never made a claim.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
819NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
3.95A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
AWhy we picked this company
Liberty Mutual is one of the best insurers for gap insurance in North Carolina. In addition to gap coverage, Liberty Mutual also offers new car replacement insurance, which has a distinct difference but can provide additional financial protection when purchasing a vehicle.
Pros
Wide range of available discounts
Accident forgiveness available
Available in all 50 states and D.C.
Cons
Many negative reviews and customer complaints
Premiums are relatively high compared to industry average
Low customer satisfaction scores from J.D. Power
Allstate
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.9 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $56/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $88/mo |
4.0
Best choiceBased on 5647 verified guest reviews and ratings
How drivers feel about Allstate
Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.
AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
How drivers feel about Allstate
Drivers appreciate the initial pricing and overall service but dislike the frequent rate increases and misleading pricing tactics.
AI-generated from the text of verified reviews collected by Insurify
Best For
Accident forgiveness
Wide availability
Cheap rates
Reviews (3,072)
Lyudmila
November 14, 2024
Verified Review
No Discount for Seniors
The service is mediocre.
Latonya
November 12, 2024
Verified Review
Not Recommended
I would not recommend Allstate. They did not support me when I needed them most. They didn't believe me or the other party when we said my first accident wasn't my fault. My agent incorrectly reported to the DMV that my insurance had lapsed when it hadn't. They increased my insurance rates four to five times within two years. A representative from my agent's office called me to sell renters insurance, promising a lower monthly rate, which turned out to be false. After I was involved in a hit and run, instead of ensuring my wellbeing, they raised my insurance again to almost $800/month. I find Allstate to be a disappointing car insurance company and I wouldn't recommend them to anyone.
Linda
November 12, 2024
Verified Review
The office in St. Petersburg, FL has significantly changed. I have been with All State, using the same office, for years. Recently, new management has taken over and the staff has become less courteous and often fail to follow through on their commitments. It's even more challenging when your call gets redirected to an office in another state.
The office in St. Petersburg, FL has significantly changed. I have been with All State, using the same office, for years. Recently, new management has taken over and the staff has become less courteous and often fail to follow through on their commitments. It's even more challenging when your call gets redirected to an office in another state.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
833NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.94A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A-Why we picked this company
If you’re the original loan or leaseholder of your vehicle, you can purchase loan/lease gap coverage through Allstate for a new vehicle. Allstate encourages drivers with collision and comprehensive coverage to also purchase gap insurance products for their vehicle and for additional payoff coverage for a qualifying covered loss.
Pros
A (Excellent) financial strength rating from AM Best
Pay-per-mile option available
Cons
Low customer satisfaction
Rates are merely average compared to other insurers
Nationwide
| User Reviews | 4.4 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.7 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $41/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $64/mo |
4.4
Best choiceBased on 782 verified guest reviews and ratings
How drivers feel about Nationwide
Drivers appreciate the excellent coverage, reliable claims process, and good initial rates but dislike the frequent price increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Usage-based savings
Accident forgiveness
Recreational vehicle coverage
How drivers feel about Nationwide
Drivers appreciate the excellent coverage, reliable claims process, and good initial rates but dislike the frequent price increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Usage-based savings
Accident forgiveness
Recreational vehicle coverage
Reviews (441)
Richard
November 7, 2024
Verified Review
Excellent Company
Nationwide appears to be an excellent company. I have recommended this company to several of my friends. My daughter and her husband have also taken out policies and are very satisfied with this company. Thank you.
Irene
November 4, 2024
Verified Review
Sorry to be leaving you, Nationwide.
I used Nationwide for 32 years. I understand that insurance prices are going up, however, due to my limited income, I can no longer afford to stay with Nationwide.
Sara
November 1, 2024
Verified Review
Very Good!
The customer service is very good. They explain things well and make it easy to understand.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
815NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.64A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+Why we picked this company
Nationwide also sells gap insurance as an add-on. If someone steals your vehicle and your insurance settlement for your vehicle’s ACV is less than what you still owe, gap insurance can cover the remaining amount.
Pros
Offers 24/7 roadside assistance coverage add-on
SmartRide (for safe drivers) and SmartMiles (for low-mileage drivers)
Accident forgiveness available
Cons
Below-average customer satisfaction scores from J.D. Power
Some discounts and programs not available in all states
Not available in every state
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 Services’ database of auto insurance rates.
With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across driver ages, genders, credit scores, and driver profiles for North Carolina drivers.
Gap insurance vs. full coverage
Full-coverage insurance is a type of insurance that includes the state’s minimum-required liability coverage plus comprehensive and collision coverages.
Comprehensive insurance can help pay for damages caused by severe weather, such as hail or lighting, and non-collision events, like fire, vandalism, or theft. Collision insurance covers the cost of repairs if you’re in an accident with someone else. These coverages don’t pay for any amount of money you still owe a lender after the initial insurance payout.
Gap insurance covers the remaining amount you still owe. Even if you have full coverage, you should buy gap insurance if you have a loan or lease on your car. Some lenders or financial institutions may even require it, depending on the terms and conditions of the auto loan.
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Learn More: Gap Insurance on Used Cars: Do You Need It?
Who needs gap insurance in North Carolina?
The state of North Carolina doesn’t require gap insurance, but a car lender likely will require you to maintain the coverage during your loan period.[2]
You should purchase gap insurance if any of the following apply:
You made a down payment of less than 20%.
You financed your vehicle for 60 months or longer.
You have a vehicle lease.
You purchased a vehicle that depreciates quickly.
You rolled negative equity over from an old car loan.
How to buy gap insurance in North Carolina
Most car insurance companies offer gap insurance, which they might also call loan/lease payoff coverage. You might be able to purchase it as a stand-alone policy, but most insurers sell it as an add-on to your existing policy. If your current insurer doesn’t offer this coverage, consider switching to one that does.
Adding gap insurance to a full-coverage policy with collision and comprehensive coverage adds about $20 per year to your premiums, according to the Insurance Information Institute.
You can also buy gap insurance from the lender you’re financing your vehicle through. But getting gap insurance through the lender will end up costing more because the lender will roll it into your loan or lease, and you’ll pay interest on it.
Cheapest recent rates in North Carolina
Drivers in and around North Carolina have found policies from Dairyland, National General, State Farm, and more, through Insurify in the last few days.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Gap insurance in North Carolina FAQs
The following information can help answer your remaining questions about gap insurance in North Carolina.
How much is gap insurance in North Carolina?
The cost of gap insurance depends on where you purchase it, as well as individual factors like your age, your location, and the type of car you drive. But adding gap insurance to an existing full-coverage policy only adds about $20 per year to your premium, according to the Insurance Information Institute.
Does North Carolina require gap insurance?
No. The state of North Carolina doesn’t require gap insurance. North Carolina drivers only need to purchase the minimum liability limits set by the state, which include bodily injury and property damage liability.[3] But your lender may require gap insurance, in addition to other auto insurance policies, when you finance or lease your vehicle.
What does gap insurance cover in North Carolina?
Gap insurance in North Carolina covers the gap between your vehicle’s actual cash value and the remainder you still owe on an auto loan if you total your vehicle or someone steals it. Gap insurance doesn’t cover other damages to a vehicle that may leave it unusable, such as an engine repair or other needed service.
Is gap insurance worth it?
Though not required, gap insurance can help provide peace of mind when you purchase a new vehicle. The cost of gap insurance makes sense if your car loan exceeds the value of the vehicle, if you have a minimal down payment, or if you plan on using your vehicle a lot, which results in high mileage.
Does gap insurance cover negative equity?
Yes. Gap insurance covers negative equity, also known as the money still owed when a car’s actual cash value is less than the remaining balance on the vehicle’s loan or lease.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Related articles
More cities in North Carolina
Sources
- Insurance Information Institute. "What is gap insurance?."
- North Carolina General Assembly. "Guaranteed Asset Protection Waivers."
- North Carolina Department of Motor Vehicles. "Insurance Requirements."
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Athena Valentine Lent
Athena Valentine Lent is a finance columnist for Slate and the author of Budgeting for Dummies (Wiley, 2023). Her writing has appeared in BuzzzFeed, The College Investor, GOBankingRates, Money Under 30, and Keeper Tax among other places. Her personal finance blog, Money Smart Latina, won the Plutus Award for "Best Personal Finance Content for Underserved Communities" in 2020 and was nominated for "Blog of the Year" in 2022. When not working she can be found with her main man, a polydactyl cat named Harrison George.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
Featured in
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