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

Data updated in 2024

Read our full 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

Data updated in 2024

Read our full methodology

How much is gap insurance in Illinois 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 $7,930 a year, and at 25 the average annual rate is $2,719.

The table below shows the average gap insurance rates in Illinois by 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

Data updated in 2024

Read our full methodology

How does gap insurance work in Illinois?

When you buy or lease a new car, depreciation 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 deductible. 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 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

Insurance.com commissioned gap insurance rates from Quadrant Data Services in late 2023 at a variety of ages in all 50 states and Washington, D.C. Base rates use a 40-year-old driver with a 2023 Honda Accord LX. Rates were gathered from 138 insurance companies in 1,468 ZIP codes.

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 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.