Illinois gap insurance: Everything you need to know

How much does gap insurance cost in Illinois?

Gap insurance in Illinois costs $2,141 per year, on average, but rates vary by company. The value of your vehicle also affects the cost of gap coverage. Expensive or luxury cars usually depreciate faster than standard vehicles, so gap insurance may have to cover more, which increases the cost.

Cheapest gap insurance companies in Illinois

Travelers offers the cheapest gap insurance coverage in Illinois at $1,240 annually. Not all car insurance companies provide gap coverage, and rates differ widely by company.

See the table below to find the cheapest insurance companies for gap coverage in Illinois.

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$1,240	$31
Auto-Owners	$1,321	$42
Progressive	$1,877	$42
Auto Club Enterprises (AAA)	$2,080	$91
Farmers	$4,185	$200

Read our methodology

Average gap insurance cost in Illinois by city

Crest Hill has the highest gap insurance rates at an average of $2,674 a year, while Bloomington offers the lowest at an average of $1,837 per year. Where you live in Illinois affects your insurance rates. Cities with higher crime and theft have higher insurance costs because your vehicle is at a greater risk of being damaged or stolen.

The table below lists the average gap insurance rates by city in Illinois.

City	Auto insurance rates with gap premium	Gap premium
Bloomington	$1,837	$71
Decatur	$1,983	$76
Mount Carmel	$2,002	$89
Crystal Lake	$2,093	$78
Arlington Heights	$2,116	$76
Aurora	$2,161	$79
Elgin	$2,161	$80
Joliet	$2,449	$92
Chicago	$2,490	$93
Des Plaines	$2,495	$93

Read our methodology

How much is gap insurance in Illinois by age group?

Gap insurance coverage for an 18-year-old driver costs $7,930 a year and costs $2,719 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.

Here are the gap insurance rates in Illinois for different age groups.

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$7,930	$308
Young adult	$2,719	$105
Adult	$2,141	$81
Senior	$1,914	$70

Read our methodology

How does gap insurance work in Illinois?

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.

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 Illinois

Many insurance companies, including major carriers, offer gap insurance in Illinois. 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.

Illinois gap insurance: FAQs

Is gap insurance required in Illinois?

Gap insurance isn't required by law in Illinois, but your lender may require you to have the coverage.

Who should buy gap insurance in Illinois?

You may need gap insurance in Illinois if you lease or finance a car with a small down payment. Since cars lose value faster than loans are paid off, gap insurance can protect you from owing more than your car is worth.

You don't need gap insurance if you own your car or make a large down payment.

What is standalone gap insurance in Illinois?

Standalone gap insurance is a policy of its own, not connected with your car insurance. Gap insurance is available from your lender or a private company as a separate policy.

Does gap insurance cover leased cars in Illinois?

Illinois gap insurance covers leased cars where the driver owes more than the vehicle's current market value. Over time, you may remove gap coverage once your vehicle is worth more than what is owed.