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Best Cheap Gap Insurance Companies in Oregon: Quotes, Discounts (2022)

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Charlie Mitchell

By: Charlie Mitchell

Edited by Jackie Cohen | Reviewed by licensed insurance agent, Amber Benka

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Drives through the Cascades, the Columbia River Gorge, or the pine desert of eastern Oregon—the Beaver State is home to some epic road trips, especially in a new car or lease. But if you’re driving on a loan, you might need gap insurance.

To find the best deals on gap insurance and any other insurance policy, use Insurify to compare quotes. It’s fast, free, and easy.

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Best Companies for Gap Insurance in Oregon

Do you need gap insurance in Oregon?

Oregon law does not require drivers to carry gap insurance. However, if you lease your vehicle, your lender might require you to purchase gap insurance coverage.

It’s cheapest to buy gap insurance as part of a full-coverage auto insurance policy. According to Insurify, these car insurance companies have the best quotes for full coverage on leased vehicles in the state of Oregon, so they’re a great starting point:

Insurance CompanyAverage Monthly Cost for Leased Cars in Oregon
Midvale Home & Auto$219
Liberty Mutual$284
Bristol West$295
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

What is gap insurance?

Let’s say you take out a car loan to buy a new car for $17,000 with a small down payment: only $1,000. Great! From the minute you hit the road for the first time, depreciation diminishes the car’s value. Six months later, your car gets stolen, and it’s a total loss. You have comprehensive coverage, so you get reimbursed, but it’s only for $12,000, and your loan balance is $14,500.

Gap insurance is for the “gap” between the loan balance and the car’s market value. In this case, gap insurance covers the $2,500 that is still owed to the lender after the insurance payout for the car’s value. When your car is worth less than the amount owed to your lender, you have what’s called “negative equity” in the car. This is why many lenders require gap insurance.

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Who should buy gap insurance in Oregon?

Gap insurance is a very niche insurance policy that only applies to drivers who have a vehicle loan, and even then, only some loans, and only for a small amount of time—a few years or less. You should only buy gap insurance if you have negative equity on your car, meaning that its actual cash value isn’t enough to cover the loan balance on your new vehicle or lease.

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.

Oregon Gap Insurance Laws

Oregon doesn’t require gap insurance—but many lenders do. Car dealerships often will require gap insurance and try to sell you their own policy, but those are two different things. You’re not required to buy their gap insurance (they’re also called gap waivers), and actually, you’ll most likely get a far better deal from a normal insurance company.

Insurance coverage requirements in Oregon include bodily injury liability, property damage liability, personal injury protection, and uninsured/underinsured motorist coverage.

How much gap insurance do I need in Oregon?

Gap insurance tends to have limits on the payout you can access based on the ratio between your car’s market value and your debt on the loan. If your car loan is way underwater—that is, if the value of your car is much lower than the amount you owe on the loan—you might need to pay extra for a gap insurance policy with high enough limits to insure your entire loan.

Lenders—banks, credit unions, dealerships, and other financial services institutions—will also offer a gap waiver, which is more or less the same as a gap insurance policy. Keep in mind: gap coverage insures the loan, but nothing else. It doesn’t pay for other damages or protect the warranty, either.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Oregon

The “gap” in gap insurance is also an acronym: GAP stands for “guaranteed asset protection.” When your new car ends up deemed a total loss and your gap waiver or gap insurance kicks in, the lender or insurance company that sold you your gap coverage pays off the rest of your loan after the insurance reimbursement—minus a deductible, of course.

How Much Gap Insurance Costs in Oregon

In Oregon, it costs on average $236 per month to buy full coverage (that’s comprehensive coverage and collision coverage along with standard liability) for a leased vehicle. That’s not bad! The national average is $289. If you’re rural, have great credit, and choose a higher deductible, you can do even better.

See More: Average Cost of Car Insurance in Oregon

How to Buy Gap Insurance in Oregon

Taking out an auto loan can be daunting. For many, a car is the most valuable thing they own, and the first time they’ve gone into serious debt. So buying auto insurance for your car is a very important way to protect your new loan, and gap insurance is just one aspect. To get the best deals in Oregon, use Insurify to access free quotes that will point you to the policy for you.

Frequently Asked Questions: Gap Insurance in Oregon

  • There is no Oregon law telling you that you must have gap insurance. However, it’s likely the bank, credit union, dealership, or other financial institution that you signed your auto loan with does. A gap waiver and gap insurance are essentially the same thing.

  • Be careful to monitor your car’s actual cash value and the outstanding balance on your auto loan. As soon as your loan balance catches up with your car’s depreciation, you’re in the clear! No need for gap insurance. Lots of insurance companies will prorate your payment when you’re ready to cancel. Just make sure you’re timely about it.

  • Gap insurance is just one aspect of the baffling task of shopping for auto insurance, and whether you live in Portland, Bend, Klamath Falls, or somewhere in between, shopping is a tough climb. Here’s one way you can make all of it so much easier: use Insurify’s quote-comparison tool to start off your comparison-shopping on the right foot. It’s fast, free, and easy.

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  • Personalized quotes in 5 minutes or less
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  • The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

    Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

    With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Charlie Mitchell
Charlie Mitchell

Insurance Writer

Charlie Mitchell is a journalist, researcher, and writer specializing in personal finance subjects. He holds a degree from Middlebury College. His work can be found in Vox, Mother Jones, The New Republic, and other publications. Charlie uses his expertise in home, renters, and auto insurance subjects to help inform people to make better financial decisions. Connect with Charlie on LinkedIn.

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