How much is gap insurance in Iowa?
The average cost of gap insurance in Iowa is $2,513 per year, but your rate will vary by insurer, vehicle value, and other factors. Fast-depreciating cars increase the gap between value and loan balance, making coverage more useful. The cost of the vehicle also matters, since luxury or high-cost cars often lose value faster, raising the potential difference after a total loss.
Cheapest gap insurance companies in Iowa
The cheapest gap insurance in Iowa is offered by Progressive, with an average yearly cost of $1,947. Not all car insurance companies provide gap coverage, and rates can vary significantly among carriers.
Take a look at the table below to see the cheapest Iowa insurance companies for gap coverage.
| Company | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Progressive | $1,947 | $17 |
| Auto-Owners | $2,332 | $87 |
| West Bend Insurance Company | $2,455 | $129 |
| IMT Insurance | $2,462 | $128 |
| Iowa Farm Bureau | $3,370 | $160 |
Average gap insurance cost in Iowa by city
Coralville has the cheapest average gap insurance rate in Iowa at $2,022 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.
Drivers in areas with more theft, accidents or costly claims 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 Iowa.
| City | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Coralville | $2,022 | $86 |
| Iowa City | $2,026 | $86 |
| Le Claire | $2,053 | $88 |
| Eldridge | $2,073 | $89 |
| Long Grove | $2,095 | $90 |
| Ames | $2,100 | $89 |
| Carroll | $2,105 | $89 |
| Princeton | $2,109 | $90 |
| Buffalo | $2,125 | $91 |
| Walcott | $2,125 | $90 |
How much is gap insurance in Iowa by age group?
Gap insurance coverage for an 18-year-old driver costs $6,785 a year and costs $3,059 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.
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 Iowa for different age groups.
| Age group | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Teen | $6,785 | $252 |
| Young adult | $3,059 | $124 |
| Adult | $2,513 | $104 |
| Senior | $2,197 | $91 |
How does gap insurance work in Iowa?
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 Iowa
You can buy gap insurance in Iowa from auto insurers, lenders, dealerships, or standalone providers. You'll usually pay less when you add it to your auto insurance policy. Dealer and lender options often cost more, so compare prices, coverage limits, eligibility rules, and cancellation terms before you choose.
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.
Iowa gap insurance: FAQs
Is gap insurance required in Iowa?
No, Iowa does not require gap insurance by law. However, your lender may require it as part of your loan or lease agreement. Always check your financing terms to confirm.
Who should buy gap insurance in Iowa?
If you have a car loan or lease in Iowa, 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 Iowa?
Standalone gap insurance in Iowa 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 Iowa?
Yes, gap insurance in Iowa covers leased cars when you owe more than the car is worth after a total loss. You can drop gap coverage once your lease balance is lower than the car's value.
Compare Iowa gap insurance rates with other states
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