How much is gap insurance in Rhode Island?
Gap insurance in Rhode Island costs an average of $3,059 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 Rhode Island
The cheapest gap insurance in Rhode Island is offered by Travelers, with an average yearly cost of $2,184. 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 Rhode Island insurance companies for gap coverage.
| Company | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Travelers | $2,184 | $60 |
| Progressive | $2,548 | $25 |
| American Family | $3,061 | $129 |
| Nationwide | $3,281 | $102 |
| Farmers | $4,219 | $177 |
Average gap insurance cost in Rhode Island by city
Newport East offers the cheapest gap insurance in Rhode Island at an average of $2,358. Where you live in Rhode Island 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.
If you live in an area with more theft, accidents, or costly claims, you 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 Rhode Island.
| City | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Newport East | $2,358 | $76 |
| Portsmouth | $2,431 | $79 |
| Westerly | $2,438 | $80 |
| Jamestown | $2,484 | $80 |
| Newport | $2,486 | $81 |
| Little Compton | $2,512 | $81 |
| Prudence Island | $2,545 | $83 |
| Bristol | $2,574 | $83 |
| Charlestown | $2,621 | $86 |
| Tiverton | $2,621 | $84 |
How much is gap insurance in Rhode Island by age group?
Gap insurance coverage for an 18-year-old driver costs $12,860 a year and costs $3,839 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 only one factor that affects insurance costs. Your location, vehicle, driving history, coverage choices, and insurer also affect what you pay.
Here are the gap insurance rates in Rhode Island for different age groups.
| Age group | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Teen | $12,860 | $405 |
| Young adult | $3,839 | $127 |
| Adult | $3,059 | $99 |
| Senior | $3,046 | $91 |
How does gap insurance work in Rhode Island?
When you buy or lease a new car, it depreciates quickly, resulting in you owing more than it's worth. If your car is totaled, your insurance company will only pay its actual cash value, which might not cover your full loan balance. That's where gap insurance helps. If your car is totaled or stolen, gap insurance covers the difference between your car's value and what 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.
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 Rhode Island
You can buy gap insurance in Rhode Island from many auto insurers, dealerships, lenders, and some standalone providers. Adding gap coverage to an existing auto policy is often the most affordable option, while dealer or lender products may cost more. Compare prices, coverage limits, cancellation terms, and eligibility before choosing.
You can also buy gap coverage 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.
Rhode Island gap insurance: FAQs
Is gap insurance required in Rhode Island?
No, Rhode Island 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 Rhode Island?
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 Rhode Island?
Standalone gap insurance in Rhode Island 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 Rhode Island?
Yes, gap insurance covers a leased vehicle in Rhode Island if it's totaled and you owe more than its actual cash value. Many lease agreements already include gap coverage, so check your contract first; if not, you can add it through your insurer or leasing company. Gap insurance can be removed once the loan balance is lower than the vehicle's value.
Compare Rhode Island gap insurance rates with other states
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