How much is gap insurance in North Dakota?
Gap insurance in North Dakota costs an average of $2,539 per year. Your price will vary by insurer, vehicle value, and other rating factors. Vehicles that lose value quickly create a larger difference between the loan balance and actual cash value, making gap coverage especially useful for those drivers. The cost of your vehicle can also affect gap insurance rates. Expensive or luxury vehicles may depreciate quickly, which can increase the amount of insurance required to cover a total loss.
Cheapest gap insurance companies in North Dakota
The cheapest gap insurance in North Dakota is offered by Progressive, with an average yearly cost of $2,220. Not all car insurance companies provide gap coverage, and rates can vary significantly among carriers.
Take a look at the table below to see the cheapest North Dakota insurance companies for gap coverage.
| Company | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Progressive | $2,220 | $30 |
| Auto-Owners | $2,401 | $88 |
| Nodak Insurance | $2,567 | $173 |
| American Family | $2,743 | $129 |
| North Star Mutual | $2,764 | $154 |
Average gap insurance cost in North Dakota by city
West Fargo offers the cheapest gap insurance in North Dakota at an average of $2,021. Where you live in North Dakota can affect your insurance rates. Auto insurance rates are higher in cities with more crime and theft since your vehicle is more likely to be damaged or stolen.
Drivers in areas with more theft, accidents or costly claims may pay higher overall auto insurance rates. Because gap coverage is often added to an auto policy, these local pricing differences can affect the total cost of coverage.
This table shows the average gap insurance rates by city for North Dakota.
| City | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| West Fargo | $2,021 | $93 |
| Fargo | $2,053 | $95 |
| Horace | $2,111 | $97 |
| Harwood | $2,176 | $101 |
| Jamestown | $2,181 | $101 |
| Arthur | $2,191 | $100 |
| Hunter | $2,196 | $100 |
| Gardner | $2,202 | $101 |
| Argusville | $2,204 | $102 |
| Grand Forks | $2,204 | $102 |
How much is gap insurance in North Dakota by age group?
Gap insurance coverage for an 18-year-old driver costs $7,025 a year and costs $2,958 annually for a 25-year-old driver. Car insurance costs more for younger drivers because they are more likely to take risks and have less experience avoiding accidents. However, rates decrease as drivers get older.
Age is just one factor in your insurance cost. Your driving record, location, vehicle, insurer, and coverage choices also affect your price. Even drivers of the same age pay very different rates.
Here are the gap insurance rates in North Dakota for different age groups.
| Age group | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Teen | $7,025 | $263 |
| Young adult | $2,958 | $129 |
| Adult | $2,539 | $115 |
| Senior | $2,205 | $98 |
How does gap insurance work in North Dakota?
Gap insurance in North Dakota covers the difference between your vehicle's actual cash value and the remaining loan or lease balance after a covered total loss. It is most useful when you owe more than the vehicle is worth, so you don't have to pay the shortfall out of pocket.
New vehicles lose value faster than some drivers pay down their loans. If your financed or leased car is totaled or stolen, your standard auto insurance pays the vehicle's actual cash value rather than the amount remaining on your loan.
"Gap is designed for people that take long-term loans and/or roll taxes, service plans, or warranties into their loan," said Zack Pope, agency manager at David Pope Insurance in Missouri. "Most gap coverages only go a certain percent over market value to pay off a loan for a totaled vehicle (typically 25%). It costs significantly less money to get gap through your insurance than to purchase it from the dealership."
For example, let's say you have a $40,000 car loan, but your vehicle's actual cash value is only $35,000. If the car is stolen, your insurance company will reimburse you $35,000, minus your deductibleThe deductible is the amount you pay out of pocket for a covered loss when you file a claim.. Gap insurance would cover the remaining $5,000 that you still owe on your loan. Without gap insurance, you'd be responsible for paying this difference out of pocket.
Once your loan is less than the value of your car, you can drop gap coverage. While you can always cancel gap insurance, you may be unable to add it anytime. Most insurers want you to add the coverage quickly after buying a car.
Additionally, many lenders require gap insurance when getting your loan. Although you can get gap coverage through your lender or car dealership, adding it to your current auto policy is usually cheaper.
Where to buy gap insurance in North Dakota
Gap insurance in North Dakota can be purchased from many insurers, dealerships, lenders, or standalone providers. Adding it to an existing auto policy is usually the cheapest option, while dealer or lender coverage often costs more. Price, coverage limits, cancellation terms, and eligibility should always be compared before selecting a policy.
Gap coverage is also available from most car dealers and lenders, but their policies are often more expensive, making them a less appealing choice.
Methodology
We gathered car insurance rates with and without gap insurance through our data partner, Quadrant Information Services.
Averages are annual and based on our full coverage data set. This data set is based on:
- Bodily injury liability of $100,000 per person and $300,000 per incident
- Property damage liability of $100,000 per incident
- Comprehensive and collision deductibles of $500
- 40-year-old driver
- Honda Accord LX
- Good credit
- A clean driving record
- 12-mile commute, 10,000 annual mileage
To show the cost of gap insurance, we have compared rates with gap insurance added to the averages without gap insurance, and the difference is shown as the annual cost of gap insurance.
Rates are based on an analysis of over 5 million data points in all 50 states and Washington, D.C. from 138 companies.
North Dakota gap insurance: FAQs
Is gap insurance required in North Dakota?
No, North Dakota law does not require drivers to carry gap insurance. However, a lender or leasing company may require coverage under the terms of a loan or lease agreement.
Who should buy gap insurance in North Dakota?
You should consider gap insurance if you finance or lease a vehicle and will owe more than it is worth, which often happens with small down payments, long loan terms or fast-depreciating cars. It is also helpful if you roll taxes, fees, warranties or an existing loan into a new loan. You do not need it if you own the vehicle outright or already owe less than its value.
What is standalone gap insurance in North Dakota?
Standalone gap insurance in North Dakota is coverage you buy separately from your auto policy, usually through a lender, dealership, or third-party provider. You may use it if your insurer doesn't offer gap coverage. Always compare what it covers, payout limits, and terms before you buy.
Does gap insurance cover leased cars in North Dakota?
North Dakota gap insurance covers leased cars when the driver owes more than the car's current market value. You can remove gap coverage once your vehicle is worth more than what you still owe.
Compare North Dakota gap insurance rates with other states
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