Illinois gap insurance: Everything you need to know

How much is gap insurance in Illinois?

Gap insurance in Illinois costs an average of $1,812 per year. Your price will vary by insurer, vehicle value, and other rating factors. Vehicles that lose value quickly create a larger difference between the loan balance and actual cash value, making gap coverage especially useful for those drivers. The cost of your vehicle can also affect gap insurance rates. Expensive or luxury vehicles may depreciate quickly, which can increase the amount of insurance required to cover a total loss.

Cheapest gap insurance companies in Illinois

Travelers offers the cheapest gap insurance in Illinois, with an average annual rate of $1,468. Not every auto insurer provides gap coverage, and prices differ significantly by company. Compare insurers that offer it and review their coverage limits and eligibility requirements before choosing a policy.

Take a look at the table below to see the cheapest Illinois insurance companies for gap coverage.

Company	Auto insurance rates with gap premium	Gap premium
Travelers	$1,468	$40
Progressive	$1,733	$24
Auto Club Group (AAA)	$1,765	$100
Nationwide	$2,027	$52
Auto-Owners	$2,070	$70

Read our methodology

Average gap insurance cost in Illinois by city

Malta has the cheapest average gap insurance rate in Illinois at $1,465 per year. Rates vary by city because insurers consider local claimAn insurance claim is a request you make to your insurance company for coverage after your car is damaged or you have an accident. You can file a claim online, by phone, or in writing. patterns, theft, traffic, repair costs and other location-based risks when pricing auto insurance. Your individual rate will differ from the city average.

If you live in an area with more theft, accidents, or costly claims, you may pay higher overall auto insurance rates. Because gap coverage is often added to an auto policy, these local pricing differences can affect the total cost of coverage.

This table shows the average gap insurance rates by city for Illinois.

City	Auto insurance rates with gap premium	Gap premium
Malta	$1,465	$46
Sycamore	$1,468	$46
Cortland	$1,470	$46
Virgil	$1,475	$47
Winfield	$1,475	$45
Bloomington	$1,477	$46
Mahomet	$1,478	$46
Waterman	$1,482	$46
Champaign	$1,483	$46
Shabbona	$1,483	$46
Towanda	$1,483	$45

Read our methodology

If you live in an area with more theft, accidents, or expensive claims, you'll likely pay more for auto insurance overall. Since gap insurance is added to your auto policy, those location-based differences also affect your total cost.

How much is gap insurance in Illinois by age group?

An 18-year-old driver in Illinois pays $5,558 a year for gap insurance, while a 25-year-old pays $2,269 annually for gap insurance. Younger drivers pay more because they have less experience and a higher chance of filing claims. As you gain experience and keep a clean record, your rates will drop.

Age is only one factor that affects insurance costs. Your location, vehicle, driving history, coverage choices, and insurer also affect what you pay.

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

Age group	Auto insurance rates with gap premium	Gap premium
Teen	$5,558	$174
Young adult	$2,269	$74
Adult	$1,812	$57
Senior	$1,637	$50

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.

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

Gap insurance in Illinois can be purchased from many insurers, dealerships, lenders, or standalone providers. Adding it to an existing auto policy is usually the cheapest option, while dealer or lender coverage often costs more. Price, coverage limits, cancellation terms, and eligibility should always be compared before selecting a policy.

Gap coverage is also available from most car dealers and lenders, but their policies are often more expensive, making them a less appealing choice.

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?

Illinois law doesn't require gap insurance, but your lender may require it.

Who should buy gap insurance in Illinois?

If you have a car loan or lease in Illinois, you might need gap insurance. If you made a small down payment, you could quickly owe more than your car is worth since vehicles lose value faster than you can pay off the loan. In this case, gap insurance can be a smart choice.

You don't need gap insurance if you own your car or made a large down payment to ensure that you owe less than the car's value at the start of your loan.

What is standalone gap insurance in Illinois?

Standalone gap insurance in Illinois is a separate policy that is not added to your auto insurance through a lender, dealership, or third party. It's useful if your insurer doesn't offer gap coverage, but terms differ, so always review what's covered and any payout limits after a total loss.

Does gap insurance cover leased cars in Illinois?

Yes, gap insurance covers a leased vehicle in Illinois if it's totaled and you owe more than its actual cash value. Many lease agreements already include gap coverage, so check your contract first; if not, you can add it through your insurer or leasing company. Gap insurance can be removed once the loan balance is lower than the vehicle's value.