120+ more*Quotes generated for Insurify users from North Carolina within the last 10 days. Last updated on August 5, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users from North Carolina within the last 10 days. Last updated on August 5, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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Licensed property and casualty insurance agent
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NPN: 21630969
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Former commercial lines underwriter
Updated
In North Carolina, 29% of drivers have an auto loan, and 3% lease their vehicle, according to Insurify data. If theft or an accident totals your car, your insurer will pay out the actual cash value, which considers depreciation. This could leave you on the hook for part of the remaining loan balance if your insurance company pays out less than you owe.
Guaranteed asset protection, or gap insurance, is optional coverage that reduces the risk by bridging the gap between your insurance payout and the outstanding balance on your loan or lease.
In North Carolina, 33% of drivers have a loan or lease on their car.
North Carolina insurers must total a car if damage equals or exceeds 75% of its actual cash value (ACV).
Nationwide offers some of the cheapest gap insurance in North Carolina.
Every driver has unique auto insurance needs, so the best company for one person isn’t necessarily the best for everyone. Compare several North Carolina insurance companies to find the right fit for you.
The following table shows the best gap insurance companies in North Carolina and the average cost of adding gap insurance.
Gap Insurance Company | Average Monthly Quote | Best For |
|---|---|---|
| Allstate | $3 | Rideshare drivers |
| Liberty Mutual | $3 | Discounts |
| Nationwide | $2 | Usage-based savings |
| User Reviews | 3.8 |
|---|---|
| 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. | $76/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. | $131/mo |
Allstate's score | Industry average | |
|---|---|---|
| Coverage options | 3.8 | 3.2 |
| Customer service | 3.9 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 3.7 | 3.1 |
| Value | 3.3 | 2.9 |
Drivers appreciate the friendly customer service and efficient claims processing, but many find the rates too high and experience unexpected price increases. Some also report poor communication from agents.
Rideshare drivers face a high risk of accidents, according to an Insurify report, so gap insurance is worth considering if you’re a rideshare driver. Allstate offers it for an additional $3 per month, on average, over the cost of full coverage in North Carolina. Allstate also offers rideshare insurance, giving you supplemental coverage between the personal use of your car and when you have passengers.
Low-cost rideshare and gap coverage
Accident forgiveness
Above-average J.D. Power customer satisfaction rating in the Southeast
Higher prices than many other North Carolina insurers
Few agents outside of Raleigh-Durham area
Low rating on Trustpilot
| User Reviews | 3.5 |
|---|---|
| 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. | 8.4 /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. | $66/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. | $106/mo |
Liberty Mutual's score | Industry average | |
|---|---|---|
| Coverage options | 3.6 | 3.2 |
| Customer service | 3.5 | 3.6 |
| Discounts | 3.3 | 2.9 |
| Policy transparency | 3.4 | 3.1 |
| Value | 3.0 | 2.9 |
Drivers appreciate the ease of making payments and the company’s helpful customer service. But they dislike the frequent and unexplained rate increases, and some report difficulties in communication and claim handling.
Liberty Mutual offers a broad range of discounts that can save North Carolinians money for driving safely, keeping all your insurance with Liberty Mutual, signing up before your current policy expires, and even buying your insurance online. Its gap coverage for drivers with negative equity is also robust, and it adds just a few dollars per month to your premiums. You can purchase optional new-car coverage for more protection against depreciation.
Great selection of discounts available in North Carolina
New-car coverage available
Low-cost gap coverage
Fewer North Carolina agents compared to other companies
Higher average rates than competitors
Below-average J.D. Power customer satisfaction in the Southeast
| User Reviews | 4.3 |
|---|
Nationwide's score | Industry average | |
|---|---|---|
| Coverage options | 4.1 | 3.2 |
| Customer service | 4.0 | 3.6 |
| Discounts | 3.7 | 2.9 |
| Policy transparency | 3.9 | 3.1 |
| Value | 3.5 | 2.9 |
Drivers appreciate the helpful and knowledgeable customer service but dislike the frequent and significant rate increases. Some also found the claims process to be slow and frustrating.
Nationwide customers who don’t drive much can take advantage of SmartMiles, the insurer’s pay-per-mile program that saves participants an average of 25%. People who drive more can save up to 40% with the SmartRide safe-driving rewards program. Not all drivers earn discounts, but SmartRide won’t increase your rates.
Nationwide also has one of North Carolina’s lowest full-coverage rates. And the average driver pays just $2 more per month to add gap coverage.
Among the most competitive rates from North Carolina insurers
Cheapest gap insurance
Above-average J.D. Power customer satisfaction score in the Southeast
Most agents located in the Raleigh-Durham area
Fewer discounts than competing North Carolina insurance companies offer
Vanishing deductible credit limited to $500 per year
If you’re in an accident and have full coverage, your comprehensive and collision insurance will reimburse the value of your car if you experience a total loss. But the actual cash value of your car may be less than what you still owe on your loan because of depreciation. Gap insurance covers the remaining loan or lease balance. Here’s how it works:[1]
Your insurer totals your car after a crash because, as North Carolina law requires, repair costs would be 75% or more of the car’s ACV.
Your insurer pays out the ACV, minus your deductible. You put that amount toward your loan or lease.
Gap insurance covers the remaining lease or loan balance, up to coverage limits.
Full-coverage quotes start at $89/mo.
Gap insurance is an inexpensive add-on to your car insurance policy. Insurify data for North Carolina shows that adding it to a full-coverage policy increases your monthly payment by $2 to $4, depending on the insurer.
Average premiums for full coverage plus gap insurance range from $89 from Direct Auto to $267 from State Farm.
Gap coverage reimburses the difference between your car’s ACV and your loan or lease balance if your car is a total loss. As the following table shows, it doesn’t pay for damage or other expenses, but it does help you pay off your loan.
What Gap Insurance Covers | What Gap Insurance Doesn’t Cover |
|---|---|
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Imagine your car’s ACV is $20,000 but you owe $30,000 on the loan. If you totaled the car in a crash on I-277 in Charlotte, your collision insurance would reimburse you $20,000 minus the deductible. You’d put that money toward paying off the car loan. Gap insurance would pay the remaining $10,000 loan balance.
Expert’s insight
“Gap insurance can be an affordable way to protect yourself financially if you have a large car loan. Think about if you can afford to pay thousands of dollars on a car loan for a car you no longer own. If you have gap insurance, you’ll be able to pay off your loan and get the process started on buying a new car faster.”
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Full coverage includes collision and comprehensive insurance for damage due to theft, collisions, and other mishaps. Gap insurance doesn’t replace full coverage. It’s either an add-on to your insurance policy or an entirely separate policy that covers your loan balance rather than damage to your or someone else’s vehicle.
Coverage | Full Coverage | Gap Insurance |
|---|---|---|
| Repairs to your car | Yes | No |
| Damage to another driver’s vehicle in an accident you cause | Yes | No |
| Injuries and medical expenses | Yes | No |
| Loan/lease gap | No | Yes |
North Carolina doesn’t include gap insurance in its minimum requirements, but the coverage provides important benefits. In North Carolina, 29% of drivers have a loan on their car, and 3% lease their cars, according to Insurify data, and these drivers may want to consider gap insurance in case of a serious accident.
In 2024, North Carolina recorded 284,546 crashes.[2] If your car is totaled, gap insurance would help you pay off your loan for a car that’s no longer usable.
North Carolina recommends you get gap insurance if you:[3]
Make a low down payment
Have a loan term of five years or more
Lease your car
Buy a car that depreciates quickly, such as an electric vehicle or luxury sedan
Roll negative equity from your previous car loan into the current one
Avoid gap insurance if your car is worth more than you owe on your loan or lease. In that case, you’d pay off your loan balance with the money you receive for your car under your collision or comprehensive coverage. If you own your car outright, you don’t need gap insurance.
Save up to $1,100 per year on coverage
You buy gap insurance when, or shortly after, you purchase or lease your car. Many insurance companies in North Carolina offer it, and you can also get it from the car dealership or the loan-issuing bank or credit union. If you lease your car, gap coverage or waiver might be included in your lease payment, so it’s worth checking before pursuing a policy.
Here’s a closer look at each of those options.[4]
Gap Insurance Source | Pros | Cons | Add-On or Stand-Alone? |
|---|---|---|---|
| Car dealership | Convenience Can roll cost into loan | High cost Incurs interest if included in loan | Loan/lease add-on, often in the form of a waiver that forgives the difference between the ACV and the loan/lease balance |
| Auto insurance company | Lower cost No interest on coverage | Requires full coverage Might have vehicle age or mileage limit | Add-on |
| Bank auto loan lender | Convenience Can roll cost into loan | High cost Incurs interest if included in loan | Loan/lease add-on, often a waiver |
| Credit union auto loan lender | Possibly lower-cost than bank financing Might provide additional benefits | Membership might be required Incurs interest if included in loan | Loan/lease add-on, often a waiver |
| Online insurer | Lower cost No interest on coverage | Requires full coverage Might have vehicle age or mileage limit | Add-on |
North Carolina insurers charge just a few dollars per month to add gap insurance to a full-coverage policy. Learn more about gap coverage and North Carolina auto insurance in general with the answers to these frequently asked questions.
No. North Carolina doesn’t require gap insurance. But it might be worth considering if you owe more on your car loan than the car is worth. That can happen if your car depreciates faster than usual, you buy with little or no money down, or you have a long loan term.
If your car is stolen or totaled in a crash, your collision or comprehensive coverage reimburses you for the car’s actual cash value, minus your deductible. Gap insurance covers the difference between the loan or lease balance and the ACV, up to policy limits.
North Carolina insurers typically charge $2 to $4 per month on top of full coverage for gap insurance. The exact amount depends on the type of car you own or lease, its actual cash value, where you live, your past claims history, and whether you buy the coverage from an insurance company or another source.
As of July 1, 2025, North Carolina’s minimum insurance requirements increased to $50,000 in bodily injury liability per person and $100,000 per accident, and $50,000 in property damage liability coverage.[5] Uninsured motorist coverage is also a requirement. In addition, the state will charge new drivers an inexperienced operator surcharge for the first eight years after receiving their licenses.
Insurify data scientists analyzed more than 250 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 500+ 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:
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
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Licensed Realtor with 10+ years in personal finance content
Contributor to Nasdaq and USA Today
Featured in
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
25 years teaching risk management and insurance course
Former commercial lines underwriter
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
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