Oregon gap insurance: Everything you need to know

Gap insurance covers the difference between your car’s value and the amount you still owe if it’s totaled or stolen. It’s not required by law in Oregon, but many lenders and leasing companies require it. In Oregon, gap insurance costs an average of $1,773 per year, with Progressive offering the lowest rates.

Last updated: Mar 5, 2026

How much is gap insurance in Oregon?

In Oregon, gap insurance costs an average of $1,773 per year, but prices vary by company. Your car's value also affects the cost of gap insurance. Expensive or luxury cars depreciate faster than standard vehicles, so gap coverage may have to pay more, leading to higher rates.

Cheapest gap insurance companies in Oregon

The cheapest gap insurance in Oregon is offered by Progressive, with an average yearly cost of $1,564. 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 Oregon insurance companies for gap coverage.

Company	Auto insurance rates with gap premium	Gap premium
Progressive	$1,564	$20
Travelers	$1,731	$41
Nationwide	$2,023	$46

Read our methodology

Average gap insurance cost in Oregon by city

Gap insurance costs the lowest in Albany at $1,498. Where you live in Oregon can impact your insurance costs. Cities with higher crime and theft rates have higher auto insurance rates since the risk of damage or theft is higher.

Here are the average gap insurance rates by city in Oregon

City	Auto insurance rates with gap premium	Gap premium
Albany	$1,498	$30
La Grande	$1,504	$30
Westfall	$1,512	$31
Pendleton	$1,513	$30
Hermiston	$1,523	$31
Irrigon	$1,529	$30
Cove	$1,537	$30
Boardman	$1,538	$31
Imbler	$1,539	$31
Umatilla	$1,544	$31

Read our methodology

How much is gap insurance in Oregon by age group?

Car insurance rates for younger drivers are more expensive because they are more likely to engage in risky driving and lack the experience needed to avoid accidents. Rates go down as the driver gets older. For example, at 18 years old the average rate is $6,350 a year, and at 25 the average annual rate is $2,038.

The table below shows the average gap insurance rates in Oregon by age.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$6,350	$181
Young adult	$2,038	$46
Adult	$1,773	$36
Senior	$1,597	$30

Read our methodology

How does gap insurance work in Oregon?

Right after you buy or lease a new car, it depreciates, causing you to owe more than the car is worth. If your car gets totaled, your insurance company pays only the car's actual cash value. This payout may leave you still owing money on the loan. That's where gap insurance helps. If someone totals or steals your car, gap insurance pays the difference between your car's value and the amount you still owe on the 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.

You can drop gap coverage once your loan balance is below your car's value. While you can cancel gap insurance anytime, you may not be able to add it later. Most insurers require you to add gap coverage soon after buying a car.

Where to buy gap insurance in Oregon

Many insurance companies, including major carriers, offer gap insurance in Oregon. It's relatively easy to add coverage to your current auto insurance policy.

Adding gap coverage to your auto insurance policy is usually the most cost-effective option. While you can purchase gap coverage from most car dealers and lenders, those policies tend to be more expensive, making it a less attractive option.

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.

Oregon gap insurance: FAQs

Is gap insurance required in Oregon?

Gap insurance isn't required by Oregon law. However, your lender may require the coverage.

Who should buy gap insurance in Oregon?

If you have a car loan or lease in Oregon, you might need gap insurance. If you made a small down payment, you could quickly owe more than your car is worth since vehicles lose value faster than you can pay the loan. In this case, gap insurance can be a smart choice.

You don't need gap insurance if you own your car or made a large down payment to ensure that you owe less than the car's value at the start of your loan.

What is standalone gap insurance in Oregon?

Standalone gap insurance is a separate policy, not part of your car insurance. You can buy it from your lender or a private company.

Does gap insurance cover leased cars in Oregon?

Oregon gap insurance covers leased cars when the driver owes more than the vehicle's current market value. You can drop gap coverage once your car is worth more than what is owed.