Rhode Island 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 Rhode Island, but many lenders and leasing companies require it. In Rhode Island, gap insurance costs an average of $3,059 per year, with Travelers offering the lowest rates.

Last updated: Mar 5, 2026

How much is gap insurance in Rhode Island?

On average, gap insurance in Rhode Island costs $3,059 a year, but rates vary by company. The cost of your vehicle also affects gap rates. Expensive or luxurious cars tend to depreciate faster than standard vehicles, meaning gap coverage would have to pay more, which increases coverage rates.

Cheapest gap insurance companies in Rhode Island

The cheapest company for gap insurance in Rhode Island is Travelers, with an average annual cost of $2,184. Not all car insurance companies offer gap coverage, and rates vary significantly by company.

Check out the table below to find 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

Read our methodology

Average gap insurance cost in Rhode Island by city

Gap insurance costs the lowest in Newport East at $2,358. Where you live in Rhode Island 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 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

Read our methodology

How much is gap insurance in Rhode Island 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 $12,860 a year, and at 25 the average annual rate is $3,839.

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

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

Read our methodology

How does gap insurance work in Rhode Island?

When you buy or lease a new car, depreciationDepreciation is the decrease in your car's value over time due to wear and tear, age and mileage. Depreciation is used to determine the actual cash value of a vehicle in the event of a total loss. can quickly cause you to owe more than the car is worth. If your car is totaled, the insurance company will only pay out the car's actual cash value, which may leave you owing on the loan. That's where gap insurance comes in. If your vehicle is totaled or stolen, gap insurance covers the difference between your car's value and the loan payoff.

"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

Many insurance companies, including major carriers, offer gap insurance in Rhode Island. You can easily add this coverage to your existing auto insurance policy or buy a standalone policy.

Adding gap coverage to your car insurance policy usually costs less. 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?

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

Who should buy gap insurance in Rhode Island?

If you have a car loan or lease in Rhode Island, 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 vehicle or make a large down payment so that you owe less than the car's value from the start of your loan.

What is standalone gap insurance in Rhode Island?

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 Rhode Island?

Rhode Island 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.