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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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Table of contents
- Best Companies for Gap Insurance in North Dakota
- What is gap insurance?
- Who should buy gap insurance in North Dakota?
- North Dakota Gap Insurance Laws
- How much gap insurance do I need in North Dakota?
- How Gap Insurance Works in North Dakota
- How Much Gap Insurance Costs in North Dakota
- How to Buy Gap Insurance in North Dakota
- Frequently Asked Questions: Gap Insurance in North Dakota
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 Company||Average Monthly Cost for Leased Cars in North Dakota|
|Midvale Home & Auto||$124|
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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!
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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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.