Illinois gap insurance: Everything you need to know

How much is gap insurance in Illinois?

On average, gap insurance in Illinois costs $2,141 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 Illinois

The cheapest company for gap insurance in Illinois is Travelers, with an average annual cost of $1,240. Not all car insurance companies offer gap coverage, and rates vary significantly by company.

Check out the table below to find the cheapest Illinois insurance companies for gap coverage.

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 is the most expensive to buy gap insurance with an average rate of $2,674, and Bloomington is the cheapest with an average of $1,837. Where you live in Illinois 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.

This table shows the average gap insurance rates by city for 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 rates are higher for younger drivers because they have less experience and are more likely to take risks while driving, increasing the odds of a total loss. As drivers get older, their rates go down. For example, an 18-year-old pays an average of $7,930 per year, while a 25-year-old pays around $2,719 annually.

The table below lists the average gap insurance rates in Illinois based on age.

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, 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.

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 providers, offer gap insurance in Illinois. You can add this coverage to your existing car insurance policy or buy a standalone policy.

The best way to get gap coverage is to add it to your auto insurance policy. Car dealers and lenders also offer gap insurance, but their policies are mostly expensive, making them less budget-friendly.

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 Illinois law. However, your lender may require the coverage.

Who should buy gap insurance in Illinois?

You may need gap insurance if you have a car loan or lease in Illinois. Drivers who make a small down payment typically owe more than the vehicle is worth since cars depreciate faster than the loan is paid down, making gap insurance a good idea.

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 Illinois?

Standalone gap insurance is a separate policy, not a part of your car insurance. You can buy gap insurance from your lender or a private company as an independent 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.