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

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Charlie Mitchell

By: Charlie Mitchell

Edited by Jackie Cohen | 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.

Did you take out a loan or a lease on a car, and your lender or dealership requires you to have gap insurance? Read on for a full explanation of gap insurance coverage and where to find the best rates in the state of North Dakota. And for any insurance policy you’re buying, Insurify is the best way to get quotes from the top insurance companies around you—for free!

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Best Companies for Gap Insurance in North Dakota

How much is gap insurance in North Dakota?

In North Dakota, it will typically only cost drivers an additional $10 to $20 to add gap insurance to an existing auto insurance policy. However, what you pay for car insurance will depend on a variety of factors, such as your age and your driving record.

Here are a few of the best car insurance companies in North Dakota that offer gap insurance. Keep in mind that top auto insurance companies like GEICO and The General don’t offer gap insurance. Policyholders can save the most money by comparing car insurance quotes far and wide before buying.

Insurance CompanyAverage Monthly Cost for Leased Cars in North Dakota
State Auto$115
Midvale Home & Auto$124
Nationwide$158
The General$195
Acuity$201
Safeco$205
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

What is gap insurance?

Let’s say you take out a car loan and your car gets totaled or stolen. Your car likely has a full-coverage auto insurance policy, which includes comprehensive coverage and collision coverage to cover the damage. But those policies only reimburse the actual cash value of your vehicle at the time of the loss, and that value might be less than what you still owe on the car.

In this case, there’s a gap between your outstanding loan and the value of your car. So even if insurance kicks in when your car is a total loss, you might need gap insurance to cover the difference and pay the loan in full. It’s not legally required, but most lenders require it. Dealers and lenders sell gap insurance, but you’ll find better rates from an insurance company.

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Who should buy gap insurance in North Dakota?

Only drivers who have a loan or a lease on their vehicles should have gap insurance, and even then, you only need it when your car is worth less than the outstanding balance on your loan or lease. That’s going to be for a limited time—a few years at most—and likely only if your loan has a small down payment and/or a long term.

Consider gap insurance 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.

North Dakota Gap Insurance Laws

North Dakota doesn’t require gap insurance, but North Dakota drivers do have a checklist of minimum coverage car insurance requirements including minimum liability coverage, personal injury protection, and uninsured or underinsured liability coverage.

Uninsured and underinsured liability insurance keeps your medical expenses paid for if the driver who is at fault doesn’t have high enough coverage limits to pay out the expenses on your claim.

How much gap insurance do I need in North Dakota?

You’ll only need gap insurance that covers the difference between your car’s cash value and the outstanding balance of your loan, and as you pay off your loan and your car depreciates, these are moving targets. But the difference tends to be only a few thousand dollars on average. Gap insurance premiums usually add only $10 to $20 to your monthly car insurance bill.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in North Dakota

The state of North Dakota doesn’t have any gap insurance laws, so if you’re new to the state, you don’t have to learn any new policy or worry about meeting state minimum requirements. To determine if you need gap insurance, use Kelley Blue Book to estimate the cash value of your vehicle, and compare it to the outstanding balance of your loan.

How Much Gap Insurance Costs in North Dakota

Normally, gap insurance shouldn’t add a large amount to the bill on your auto insurance policy. On average, North Dakota drivers pay $136 per month for auto insurance on leased vehicles. As full-coverage car insurance goes, that’s very affordable when compared to the national average of $289 per month!

See More: Average Cost of Car Insurance in North Dakota

How to Buy Gap Insurance in North Dakota

Shopping for car insurance coverage in North Dakota is just like it is in every state. There’s a competitive pool of insurance companies out there, all of them looking for ways to match their strengths as a company with your needs as a driver. Let Insurify be your matchmaker, getting you free quotes on auto insurance that include the gap coverage you need.

Frequently Asked Questions: Gap Insurance in North Dakota

  • North Dakota drivers are only required to carry the state minimum liability insurance, personality injury protection, and uninsured/underinsured motorist coverage. Auto lenders and car dealerships will often require you to purchase gap insurance, and even offer it themselves—but you should shop around and find an auto insurance company to give you the best rate.

  • If you’ve paid your policy in full, car insurance companies will most likely refund gap insurance at a prorated value if you choose to cancel it. Once your car’s value is more than your loan balance, you have no reason to keep your gap insurance on your auto policy. When you’re setting your policy, ask your insurance agent about the cancellation procedure.

  • If you live in ultra-rural North Dakota, you know how vital it is to have a driver’s license—even in Fargo. And if there’s a DUI on your driving record or if you don’t have good credit, you’ll be extra motivated to find cheap car insurance. All North Dakota drivers should use Insurify to search for the best quotes on North Dakota car insurance. It’s quick, easy, and free.

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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.

Charlie Mitchell
Charlie Mitchell
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Insurance Writer

Charlie Mitchell is a journalist, researcher, and writer specializing in personal finance subjects. He holds a degree from Middlebury College. His work can be found in Vox, Mother Jones, The New Republic, and other publications. Charlie uses his expertise in home, renters, and auto insurance subjects to help inform people to make better financial decisions. Connect with Charlie on LinkedIn.

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