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Best Cheap Gap Insurance Companies in Rhode Island: 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.

It doesn’t take much more than an hour to drive from one corner of Rhode Island to the other. But every Rhode Island driver still needs auto insurance. Read on to learn about gap insurance for cars with loans or leases. And whatever insurance policy you’re buying, use Insurify to discover the insurance companies that have the best deals—in Providence or anywhere else.

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Best Companies for Gap Insurance in Rhode Island

What companies sell gap insurance in Rhode Island?

Many auto insurance companies in Rhode Island offer gap insurance. Nationwide offers the cheapest gap insurance on average, but keep in mind that what you pay for insurance will depend on a variety of factors, like your age, your driving record, and your credit score.

Which auto insurance companies provide the best gap insurance policies in the Ocean State? These companies gave Insurify the cheapest car insurance quotes for full-coverage Rhode Island car insurance for leased vehicles, which are the most likely to need gap insurance. Progressive, Allstate, and GEICO are other big names offering great auto insurance rates.

Insurance CompanyAverage Monthly Cost for Leased Cars in Rhode Island
Midvale Home & Auto$291
Liberty Mutual$491
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

What is gap insurance?

Gap insurance only applies to drivers who have an auto loan or lease. Depending on the terms of your loan and your car’s value, your lender might require you to have gap insurance. Car insurance companies sell gap insurance, and banks, dealerships, and credit unions sell “gap waivers”—they’re the same thing, but often, you’ll be better off with an insurance company.

Here’s when you need gap insurance: as soon as you drive your car off the lot, it starts to lose value, often about 20 percent in its first year. Unless you made a big down payment and got a tight loan term, you’re not going to pay the loan at that pace. So for a time, you’ll be “underwater”: you’ll owe more on the car than it’s actually worth. Gap insurance covers the difference.

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Who should buy gap insurance in Rhode Island?

Since you’re driving a pretty new car and have a loan or a lease, your auto insurance is going to be a full-coverage policy—as in, it will include comprehensive coverage and collision coverage. This means that, in the event of a total loss like your car being stolen or irreparably damaged in a collision, you’ll get a full reimbursement for the actual cash value of the car.

But what if your car’s cash value—minus your policy’s deductible—isn’t enough to pay off the loan? This is when your auto insurance coverage needs to include gap insurance. “Gap” stands for “guaranteed asset protection” because it ensures that the financial institution will get all the money for their loan back. And you won’t have to pay off the full loan on a totaled car!

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.

Rhode Island Gap Insurance Laws

Rhode Island law has no gap insurance requirements. The Ocean State has state minimum insurance requirements for liability insurance, but that’s it. Minimum coverage for Rhode Island car insurance includes $25,000 in bodily injury liability per person and $50,000 per accident, along with $25,000 per accident in property damage liability.

Even though gap insurance is additional coverage not required by the state of Rhode Island, your lender will likely require you to have it, and you’ll at least need a full-coverage insurance policy that includes comprehensive coverage and collision coverage. Optional for Rhode Island drivers: medical payments and uninsured/underinsured motorist coverage.

How much gap insurance do I need in Rhode Island?

When you buy gap insurance, it will sometimes be limited to a certain percentage of your car’s cash value. Some only cover 25 percent of your car’s value; others go to 50 percent. Have a conversation with your insurance agent or lender about the status of your loan and how far underwater your auto loan is actually going to be.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Rhode Island

When your lender or auto dealership tries to sell you a gap waiver, definitely take a breather and have a look at what insurance companies in your area are offering. You’ll almost always get a better deal with them. Gap insurance is additional coverage to your insurance policy, and often, insurance companies add it to your normal auto insurance policy for a small percentage of your premium.

How Much Gap Insurance Costs in Rhode Island

Yikes! Full-coverage auto insurance in Rhode Island for a leased car costs about $347 monthly on average. For a tightly packed state close to lots of metro areas, this makes sense. But it’s significantly more expensive than the nationwide average for a full-coverage auto insurance policy on leased vehicles, which is just $289.

See More: Average Cost of Car Insurance in Rhode Island

How to Buy Gap Insurance in Rhode Island

When you buy gap insurance in Rhode Island, the lender on your new or leased car is going to try to get you to buy a gap waiver first. But it’s likely that auto insurance companies will cover your loan for cheaper. All Rhode Island drivers should shop around for the best car insurance quotes, especially if you have a valuable car. The best place to do that? Insurify.

Insurify allows you to compare quotes from top insurance companies all at your fingertips. Just answer a few demographic questions and you’ll be presented with the best and cheapest quotes.

Frequently Asked Questions: Gap Insurance in Rhode Island

  • Rhode Island auto insurance requirements don’t go beyond the minimum liability car insurance requirements. They don’t even mandate uninsured motorist coverage! But lenders will often require gap insurance on your auto insurance coverage if you have a loan that’s likely to be underwater at some point in the loan term. It’s an affordable add-on to your liability coverage.

  • Insurance providers will refund the premium on your gap insurance policy on a prorated basis if you notify them of your intent to cancel in a timely manner. Just keep a close eye on your gap insurance, and the more you update your insurance company on your evolving situation, the more your average rates will go down over time.

  • Your credit score, whether you live in Newport or Providence or out in the country, if there’s a DUI on a driving record—these factors all contribute to your car insurance rates. The best way to find cheap car insurance is to bundle it with homeowners, renters, and any other insurance policy you can. Use Insurify to compare quotes and get amazing insurance premiums—it’s free!

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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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