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Best Cheap Gap Insurance Companies in North Carolina: Quotes, Discounts (2022)

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Lindsay Frankel

By: Lindsay Frankel

Edited by Tanveen Vohra | Reviewed by licensed insurance agent, Amber Benka

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Gap Insurance in North Carolina

When you buy a new car in North Carolina, the last thing you want to think about is getting into a car accident. But it could happen. And if it would hurt you financially, it’s wise to consider purchasing gap insurance for your new vehicle. Fortunately, gap coverage only adds about $20 to $40 per year to your premium. Check out Insurify for gap insurance quotes today!

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Best Companies for Gap Insurance in North Carolina

How much is gap insurance in North Carolina?

The average policyholder in North Carolina pays $149 per month for a car insurance policy with gap insurance. However, what you pay for car insurance will depend on a variety of factors, such as your age and your driving record.

Not all insurance providers in North Carolina offer gap insurance. To help you narrow down your options, below are the top gap insurance companies and the average overall cost that North Carolina drivers who lease pay at each company.

Insurance CompanyAverage Monthly Cost for Leased Cars in North Carolina
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

You can also get gap insurance in North Carolina from Allstate, Liberty Mutual, Nationwide, or Progressive. In addition, State Auto offers auto replacement cost coverage, which is similar to gap insurance but provides more coverage for the purchase of a new vehicle.

See More: Cheap Car Insurance in North Carolina

What is gap insurance?

Gap coverage, or guaranteed asset protection, is an optional insurance product designed for new cars that are at most two to three years old. It’s often required by lenders and lessors when you buy a new vehicle. It covers the difference, due to depreciation, between the car’s actual cash value (ACV) and the loan balance in the event the car is totaled or stolen.

Similarly, a gap waiver is an agreement for the lender to pay the difference between the depreciated value of the car and the loan amount. Gap waivers are usually charged as a flat fee that is built into the loan, and they’re usually more expensive than paying for gap insurance for a few years. In most cases, you’ll be better off finding an insurer to provide gap coverage.

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Who should buy gap insurance in North Carolina?

Gap insurance is designed for new car owners and is particularly important for people who made a small down payment, took out a loan with a term longer than 60 months, or rolled over negative equity from a previous loan. Gap insurance is also typically required as a condition of a lease agreement.

In each of these situations, you may end up owing more than your car’s Kelley Blue Book value on your auto loan if your car is declared a total loss. That could leave you without the funds to pay your lender. If at any point you can’t afford to pay the difference, you should add gap insurance coverage to your car insurance policy.

North Carolina Gap Insurance Laws

State law does not require drivers to carry gap insurance in North Carolina, and insurance companies aren’t required to offer this type of coverage, either. However, many lenders in North Carolina may require you to purchase gap insurance as a condition of your loan or lease. Gap insurance can be bought as an add-on to your comprehensive and collision coverage.

How much gap insurance do I need in North Carolina?

Gap insurance doesn’t come with coverage limits. Instead, gap insurance covers the difference between the value of your car and the amount of your outstanding loan. If at any point you’ll be upside-down on your car loan, it’s a good idea to purchase gap coverage.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in North Carolina

Here’s an example of how gap insurance works in North Carolina:

  • You buy a new $30,000 car with a $29,000 loan.
  • You purchase car insurance coverage with a $500 deductible.
  • After a few months, the vehicle depreciates to a value of $25,000. You’ve made some payments but still owe $28,500 on your loan.
  • Your car is stolen and the insurance settlement yields you the value of your car minus your deductible, or $24,500.
  • Without gap insurance, you’d still owe your lender $4,000, and you’d need a new car. With gap coverage, you’d only owe your $500 deductible.

How Much Gap Insurance Costs in North Carolina

You can either purchase gap insurance as an add-on to your comprehensive and collision coverage through your insurance company, or you can buy the coverage from the dealership or finance company. Gap insurance only adds $20 to $40 to your annual premium if you go through an insurance company.

If you purchase gap coverage through the dealership, on the other hand, you’ll likely pay a flat fee of several hundred dollars. This amount is usually wrapped into your loan payment, so it might seem insignificant, but you’ll save money if you compare gap insurance companies instead.

Your individual rate will depend on the value of the vehicle, its age, your location, and your auto insurance claims history. Drivers who lease their cars in North Carolina tend to carry gap insurance and, as a result, pay an average of $149 per month for their overall auto insurance premium. But you could pay less than that if you compare customized quotes from different insurers.

See More: Average Cost of Car Insurance in North Carolina

How to Buy Gap Insurance in North Carolina

Since gap insurance only adds $20 or so to your annual premium, your best bet is to compare your base rate with different car insurance companies and then choose the cheapest provider that offers gap coverage. The easiest way to get multiple quotes in one spot is to use Insurify. Our artificial intelligence technology will do the work for you.

With Insurify, you won’t need to pull multiple quotes, make calls, or mess with spreadsheets. You’ll just need to answer a few questions about your vehicle and driving history. Once we retrieve a handful of quotes for you, you can adjust your price by changing your coverage limits and deductible amount. We’ll even factor in certain discounts you may be eligible for.

Frequently Asked Questions: Gap Insurance in North Carolina

  • No. Gap insurance is not required under North Carolina law, even if you have a new vehicle. Gap coverage is an optional insurance product that is wise for new vehicle owners to consider adding to an insurance policy.

  • If you paid for gap insurance over the life of the loan and you repay the loan early or cancel the coverage, you may be entitled for a refund of the unused portion. However, if you pay gap insurance premiums for one or two years and later pay off your loan, don’t expect to get money back from your insurer.

  • North Carolina drivers can find cheap gap insurance by comparing car insurance quotes with Insurify. You’ll only need to enter your information one time, and our artificial intelligence technology will show you the cheapest companies around. From there, just select the best option for you that also offers gap insurance.

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  • The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

    Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

    With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Lindsay Frankel
Lindsay Frankel

Insurance Writer

Lindsay Frankel is a content writer specializing in personal finance and auto insurance topics. Her work has been featured in publications such as LendingTree, The Balance, Coverage.com, Bankrate, NextAdvisor, and FinanceBuzz.

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