Gap Insurance in Illinois (2024)
While Illinois law doesn’t require gap insurance, it’s worth considering if you financed or leased your vehicle.
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Written byA.M. Steinbach
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A Harvard graduate, Mark has worked as a freelance personal finance and tech writer. He’s also written for Saturday Night Live.
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Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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Updated November 20, 2024
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Table of contents
Gap insurance — short for “guaranteed asset protection” — is an optional form of insurance designed for drivers who lease or finance a vehicle. For example, if your financed car is a total loss after an accident, gap insurance helps ensure you aren’t still on the hook for auto loan payments once your car is unusable.
Several car insurance companies in Illinois offer gap insurance at competitive rates. Read on to learn more about what gap insurance covers, which drivers should buy it, how to buy it, and the best companies for gap insurance in Illinois. And remember to always compare car insurance quotes from multiple companies before buying a policy.
Quick Facts
A full-coverage policy in Illinois costs an average of $176 per month. Adding gap insurance typically costs $2 more per month.
Auto-Owners, Progressive, and Erie offer some of the best gap insurance in Illinois.
Leasing companies usually require drivers to carry gap insurance.
How gap insurance works
It’s just reality: A car loses value the moment you drive it off the lot.
So, if you finance your vehicle and only made a small down payment at the time of purchase, you can potentially owe more on the car than its actual cash value (ACV). You’re still paying off a loan worth that original purchase price, even as your vehicle has lost value. In this case, you’re “underwater” on your car loan.
Things can get complicated if you get in an accident that badly damages your vehicle. If your car is totaled, standard car insurance policies will cover the car’s market value, which has depreciated since you bought it — but you’ll still owe loan payments on the full price of the car.
That’s where gap insurance comes in. Gap insurance covers the difference between your car’s market value and the remaining loan in the event of a total loss. This coverage ensures you aren’t still paying car payments if you damage your car beyond repair.
Gap insurance is a good idea if you made a low down payment on your car (typically less than 20%) or if your loan term is more than 60 months. Also, anyone who leases a vehicle should consider gap insurance (and lenders sometimes require you to carry gap insurance if you lease a car).[1]
Find Gap Insurance in Illinois
Full-coverage rates start as low as $56 per month
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What gap insurance covers in Illinois
Gap insurance covers the difference between the amount you owe on your car loan and the market value of your vehicle.
For example, say you purchase a car for $30,000. You pay a down payment of $5,000 and owe $25,000 on your car loan. Unfortunately, a few months into your loan, you total your vehicle. At the time of the accident, your car was worth $23,000 — but you still owe $25,000 on your loan, which means you still have to pay $2,000 for a car that’s unusable.
Gap insurance helps you pay this $2,000. Gap insurance differs from other forms of insurance in that it doesn’t have a deductible. So, the insurer will pay out the full claim amount. You shouldn’t have to pay a portion of your remaining loan balance out of pocket.
You don’t want to be on the hook for additional loan payments after a car is totaled. Gap insurance helps you avoid that scenario.
Important Information
Gap insurance only applies to your remaining loan balance. Your gap insurance policy won’t cover the cost of replacing your totaled vehicle with a new one. New-car replacement coverage, which is also optional, provides coverage for the purchase of a new vehicle of the same year, make, and model after your original vehicle is totaled.
Gap insurance also doesn’t cover overdue loan payment fees, lease penalties, or the down payment for a new vehicle after your car is totaled.
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Cheapest Auto Insurance in Illinois (2024)
Best gap insurance companies in Illinois
Several insurance companies in Illinois offer gap coverage. The following companies offer the best combination of low rates and high customer satisfaction scores.
Auto-Owners
| User Reviews | 4.0 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.5 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $30/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $56/mo |
4.0
Best choiceBased on 141 verified guest reviews and ratings
How drivers feel about Auto-Owners
Drivers appreciate the friendly customer service, competitive initial rates, and professional agents but dislike the frequent price increases and complicated claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
How drivers feel about Auto-Owners
Drivers appreciate the friendly customer service, competitive initial rates, and professional agents but dislike the frequent price increases and complicated claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Cheap rates
Senior drivers
Ample discounts
Reviews (89)
Debra
November 3, 2024
Verified Review
Excellent
They keep raising prices.
Scotty
November 2, 2024
Verified Review
They are a bunch of crooks. My policy has increased every single time, and I've only had one small claim.
They are a bunch of crooks. My policy has increased every single time, and I've only had one small claim.
Dana
October 31, 2024
Verified Review
Average
Ask many questions to cover all aspects of the policy.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
834NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.5A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++Why we picked this company
Auto-Owners offers the lowest average rates in Illinois, which makes this insurer one of the best options for drivers seeking gap insurance. Speak to your local agent to learn about specific gap coverage rates and whether you’re a good candidate for this add-on insurance.
Pros
Above-average J.D. Power customer satisfaction rating in Illinois
Multiple discounts
Cons
Available in only 26 states
Some negative customer reviews on Trustpilot
Progressive
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 827 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 8.4 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $45/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $120/mo |
How drivers feel about Progressive
Drivers appreciate the professional service and accident forgiveness but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
How drivers feel about Progressive
Drivers appreciate the professional service and accident forgiveness but dislike the high prices and frequent rate increases.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
Reviews (5,794)
Steven
November 19, 2024
Verified Review
I'll Stay with Them, No One Can Beat Them!
They are the cheapest I have found!
Lesley
November 16, 2024
Verified Review
Disappointed
If you want to use the auto pay feature, you have to do snapshot.
Joyce
November 14, 2024
Verified Review
Unfair Pricing
They initially offered a low price, but then added $100 after three months without any notice. I tried to contact them about it, but they either did not answer the phone or responded in a hostile manner. As a result, I had to cancel and find coverage elsewhere.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
827NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.82A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+Why we picked this company
Progressive offers loan/lease payoff coverage, which helps pay the difference between your car’s value and your remaining loan or lease balance if someone steals your car or you total it. Progressive will pay up to 25% of your vehicle’s value and will send payment directly to your loan or lease provider.
Pros
Numerous coverage options and discounts available
Rewards for good drivers
Cons
Below-average J.D. Power customer satisfaction rating in Illinois
Higher-than-expected number of complaints with the National Association of Insurance Commissioners (NAIC) for a company of its size
Erie
| User Reviews | 4.1 |
|---|---|
| IQ Score The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores. | 9.0 /10 |
| Liability Only Liability-only insurance, sometimes called minimum-coverage insurance, pays for bodily injury and property damage to others in an accident the policyholder causes. It does not pay for the insured’s own damages. | $50/mo |
| Full Coverage Full-coverage car insurance generally includes liability, collision, and comprehensive coverage, and may include other optional coverages such as uninsured motorist coverage. Collision covers a policyholder’s repair or replacement costs in case of an accident. Comprehensive covers damages caused by non-accident events. The average quote displayed here reflects policies with the following coverage limits: $50,000 bodily injury liability per person; $100,000 bodily injury liability per accident; $50,00 property damage liability per accident; $1,000 collision deductible; and a $1,000 comprehensive deductible. | $92/mo |
4.1
Best choiceBased on 240 verified guest reviews and ratings
How drivers feel about Erie Insurance
Drivers appreciate the excellent customer service, fair pricing, and responsive assistance. However, some are unhappy with unexpected rate increases and policy cancellations.
AI-generated from the text of verified reviews collected by Insurify
Best For
High customer satisfaction
Competitive rates
Optional coverages
How drivers feel about Erie Insurance
Drivers appreciate the excellent customer service, fair pricing, and responsive assistance. However, some are unhappy with unexpected rate increases and policy cancellations.
AI-generated from the text of verified reviews collected by Insurify
Best For
High customer satisfaction
Competitive rates
Optional coverages
Reviews (126)
Lana
November 10, 2024
Verified Review
Erie Insurance
The policy is difficult to understand. The rates are too high.
George
November 6, 2024
Verified Review
Good People
They handled my claim quickly.
Judie
November 4, 2024
Verified Review
Great Coverage
The coverage is excellent, but I am looking for a cheaper rate.
JD Power
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
876NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.49A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+Why we picked this company
Erie has some of the most affordable rates in Illinois. Additionally, Erie provides gap insurance for only a small increase to your premium — though it won’t cover balances you carry over from a previous loan.
Pros
Excellent Better Business Bureau, J.D. Power, and AM Best ratings
Competitive rates for teenagers and drivers with speeding tickets
Cons
Available in only 12 states
Can’t buy a policy or file a claim online
Data scientists at Insurify analyzed more than 40 million real-time auto insurance rates from our partner providers across the United States to compile the car insurance quotes, statistics, and data visualizations displayed on this page. The car insurance data includes coverage analysis and details on drivers’ vehicles, driving records, and demographic information.
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums. The data included on this page represent averages across driver ages, genders, credit scores, and driver profiles for Illinois drivers.
Gap insurance vs. full coverage
In Illinois, full coverage refers to an auto insurance policy that includes liability coverage, collision coverage, and comprehensive coverage. Together, it covers repairs to both the other driver’s vehicle and your vehicle in the event of a car accident.
If you purchase full-coverage car insurance, you shouldn’t assume it includes gap insurance. In most cases, you’ll want to purchase gap insurance as a separate add-on coverage. Gap insurance can enhance your full-coverage policy by covering your remaining loan balance if your car is a total loss.
Cheapest recent rates in Illinois
Drivers in and around Illinois have found policies from Farmers, Mercury, Certainly, and more, through Insurify in the last few days.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users within the last 10 days. Last updated on November 20, 2024
Rates shown are real-time Insurify user quotes from 100+ insurance companies and Quadrant Information Services data. Insurify’s algorithm excludes anomalous quotes and anonymizes personal details, then displays refined quotes by price, date, and insurer popularity up to 10 days ago from November 20, 2024. Actual quotes may vary based on the policy buyer’s unique driver profile.
Who needs gap insurance in Illinois?
Drivers in Illinois must carry liability car insurance, including $25,000 in bodily injury liability per person, $50,000 in bodily injury liability per accident, and $20,000 in property damage liability insurance. But Illinois has no laws requiring drivers to carry gap insurance.[2]
That means gap insurance is an optional coverage that should be considered on a case-by-case basis. Below are a few cases that might call for gap insurance:
The Illinois Insurance Association recommends gap insurance for drivers who finance a new car with a long repayment period.[3]
Drivers who purchase cars that tend to depreciate quickly — such as a brand-new luxury car — should purchase gap insurance.
Drivers who are carrying over negative equity from a previous loan to the loan on their current car should purchase gap insurance.
Gap insurance adds to your monthly car insurance payments, so you should consider it carefully before purchasing. For instance, if you made a sizable down payment and have a short repayment term, you probably don’t need gap insurance. In that case, your car’s actual cash value might still exceed your loan balance, so you’re unlikely to be underwater on your loan.
Additionally, if you own your car outright, you have no need for gap insurance. You won’t have a remaining loan balance after a total loss, so you won’t need insurance to cover the difference.
Talk to your car insurance agent to see if you’re a good candidate for gap insurance. Occasionally, your lender will suggest or even require gap insurance before approval of your loan.
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How to buy gap insurance in Illinois
You have a few different ways to buy gap insurance. Your car dealership may offer gap insurance to you after you purchase the car, which will be included in the car’s price. You can also purchase it from your auto lender, who will include it in your car loan.
You can also purchase gap insurance as you would any other optional insurance add-on — by speaking to your insurance agent and adding the coverage to your existing auto policy.
Gap insurance in Illinois FAQs
Below, you’ll find answers to some commonly asked questions about gap insurance in Illinois.
Does Illinois require gap insurance?
No. Illinois doesn’t require gap insurance. Illinois drivers only need to carry liability insurance at the 25/50/20 state minimums.
How does gap insurance work in Illinois?
Gap insurance in Illinois works the same as in any other state. If you total your car or someone steals it, your insurance company will pay the difference between any remaining loan balance and the claim payout. Without gap insurance, you’d be on the hook to cover the remaining loan balance out of pocket.
How much is gap insurance in Illinois?
Gap insurance usually costs about $20 per year, though this varies by company. Contact your local auto insurance agent to figure out the costs of gap insurance. Be sure to ask your agent if your insurer has any payout caps or other limitations you should know about.
What are the pros and cons of gap insurance?
Gap insurance offers guaranteed financial protection to drivers who are financing their vehicles and ensures you won’t be on the hook for the remaining balance on your loan after a total loss. Still, gap insurance adds another monthly expense to your insurance costs — so make sure it’s worth the money before purchasing.
Is gap insurance worth it?
Consider your specific situation before deciding if gap insurance is worth it. If you made a small down payment — for instance, less than 20% of your total loan — and have a loan repayment period, gap insurance is likely worth it. If you’ve paid off most of your loan, it’s unlikely you’ll be severely underwater on your loan, so gap insurance might not be worth it.
Methodology
Insurify data scientists analyzed more than 90 million quotes served to car insurance applicants in Insurify’s proprietary database to calculate the premium averages displayed on this page. These premiums are real quotes that come directly from Insurify’s 50+ partner insurance companies in all 50 states and Washington, D.C. Quote averages represent the median price for a quote across the given coverage level, driver subset, and geographic area.
Unless otherwise specified, quoted rates reflect the average cost for drivers between 20 and 70 years old with a clean driving record and average or better credit (a credit score of 600 or higher).
Liability-only premium averages correspond to policies with the following coverage limits:
- Bodily injury limits between state-minimum rates and $50,000 per person, $100,000 per accident
- Property damage limits between $10,000 and $50,000
- No additional coverage
- Comprehensive coverage with a $1,000 deductible
- Collision coverage with a $1,000 deductible
Quotes for Allstate, Farmers, GEICO, State Farm, and USAA are estimates based on Quadrant Information Services’ database of auto insurance rates.
Related articles
More cities in Illinois
Sources
- III. "What is gap insurance?."
- Illinois Department of Insurance. "Mandatory Vehicle Insurance."
- Illinois Insurance Association. "How does 'gap' insurance work?."
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A.M. SteinbachInsurance Writer
A.M. is a Brooklyn-based writer, editor, and content marketing strategist who's worked with major brands in insurance, tech, finance, and healthcare. He also contributes to The Average Joe, a personal finance newsletter that reaches over 250,000 daily readers. Since 2019, he's written for Insurify, breaking down a diverse range of insurance topics into crisp, readable prose.
7+ years in content creation and management
5+ years in insurance and personal finance content
Ashley is a seasoned personal finance editor who’s produced a variety of digital content, including insurance, credit cards, mortgages, and consumer lending products.
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