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Gap Insurance in Illinois

Many Illinois drivers rely on an auto loan or a leasing program to help finance the purchase of a vehicle. However, if you’re involved in an accident and your vehicle is considered a total loss, you could be responsible for the remaining balance on your loan. Gap insurance is one way to protect yourself financially in these scenarios. Insurify provides an online platform to quickly compare gap insurance policies from high-quality insurance providers. Try the comparison tool today and find your perfect coverage.

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Best Companies for Gap Insurance in Illinois

Illinois has an abundance of options for insurance companies that offer affordable coverage for auto insurance policies like gap coverage. Consider obtaining and comparing auto insurance quotes from some of the following providers.

Insurance CompanyAverage Monthly Cost for Leased Cars in Illinois
Mile Auto$124
Direct General$169
First Chicago$179
Midvale Home & Auto$179
Bristol West$206
Disclaimer: Table data sourced from real-time quotes from Insurify's 50-plus partner insurance providers. Actual quotes may vary based on the policy buyer's unique driver profile.

See More: Cheap Car Insurance in Illinois

What is gap insurance?

Gap insurance is an optional coverage that is usually an add-on to your standard auto insurance. In short, gap insurance covers the difference between your vehicle’s actual cash value and the remaining loan balance if your car was totaled in an accident or stolen. Without the coverage, you would be required to cover this cost out of pocket.

Since gap coverage is optional, drivers aren’t legally required to maintain the insurance. Where a driver might be required to carry gap insurance is if they take out a loan. Most lenders will require additional coverage regardless of the loan amount.

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Who should buy gap insurance in Illinois?

Most drivers believe that gap insurance is only needed when they have a loan or a lease. However, this isn’t always the case. There are several instances where it makes sense to purchase gap coverage. Here are a few scenarios where you should consider guaranteed asset protection:

  • You buy a vehicle that is known to depreciate faster than others.

  • You participate in a leasing program with a dealership.

  • Your auto loan has a term longer than five years.

  • When purchasing a vehicle, you put down a down payment of 20 percent or less.

Illinois Gap Insurance Laws

In Illinois, there are legal requirements to maintain coverage on your vehicle that include liability insurance. However, there are no state mandates involving gap insurance. Instead, the coverage is often a requirement by lenders for drivers taking out an auto loan.

How much gap insurance do I need in Illinois?

The exact amount of gap insurance you need to carry will be determined by several factors, such as lender requirements, policy limits, and deductibles. When looking for a policy that meets these criterias, you will also want to pay close attention to each plan's amount of coverage.

As you compare companies and policies, you may notice that not every plan is the same. Some gap coverage policies will only cover up to 25 percent of the value of your vehicle. Other plans will pay off the entire balance of your loan or lease.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Illinois

Illinois gap insurance helps drivers cover the gap that is left between a car's value and any remaining balance on an auto loan or lease. Even though the coverage is optional, nearly all lenders will require you to purchase the coverage to be approved for the loan.

A unique benefit of having gap insurance is that you might get money back from your policy. You will need to pay for the entirety of your gap coverage in advance and pay off your vehicle early to qualify for the reimbursement.

How Much Gap Insurance Costs in Illinois

How much is gap insurance in Illinois?

The average cost to insure a leased vehicle in Illinois is $194 per month. However, what you pay for gap insurance will largely depend on whether you buy gap insurance from your car dealership or from your insurance provider.

Drivers who are looking to add gap insurance to their current auto insurance will be happy to know that both coverages together are less than $200. In fact, on average, Illinois drivers only pay $194 a month for a standard insurance policy with gap insurance added on.

See More: Average Cost of Car Insurance in Illinois

How to Buy Gap Insurance in Illinois

If you plan on using a car loan or leasing a new vehicle, you may notice that gap insurance is a requirement to be approved for either. Luckily, there are several places where you can find gap coverage. The three most common options are through a lending institution, a dealership, or an auto insurance company.

Generally, car insurance companies will provide you with the best rates and tend to offer better policy limits. However, it can be challenging to decide which insurance provider you should purchase through. Often, the best way to tell which company makes the most sense for you is to request quotes from multiple providers.

While effective, comparing numerous quotes can be a time-consuming process. That is why Insurify has created a platform that will allow you to review quotes on a single page and compare policy details within seconds. Most policyholders find their perfect plan in a matter of minutes.

Frequently Asked Questions: Gap Insurance in Illinois

  • The state of Illinois doesn't have any laws that require a driver to maintain a gap insurance policy. However, if you plan on taking out an auto loan or leasing a new car, you may be required to obtain insurance coverage. Most lenders and dealerships that offer leasing programs or financing make having guaranteed asset protection (GAP) part of their contracts.

  • In certain situations, you will get money back if you have gap insurance. For example, suppose you pay your gap coverage in advance and pay off your vehicle early. In that case, you could receive money back equaling the amount of unused coverage. Drivers that are paying monthly premiums won't qualify for this.

  • To find the cheapest gap insurance in Illinois, you will need to review quotes from different insurance companies. With an abundance of options, comparing rates can quickly become overwhelming. Insurify helps simplify the process by displaying a list of qualifying quotes on a single page, allowing you to quickly review and select the coverage that is right for you.

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  • 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 Service's database of auto insurance rates. With these insights, Insurify is able to offer drivers insight into how companies price their car insurance premiums.

Doug Shaffer
Doug ShafferInsurance Writer

Doug Shaffer works as a content writer. He has had the opportunity to write for several national insurance carriers in the past and brings with him over six years of experience working with both business and consumer products. He enjoys being able to break down complex insurance jargon to allow consumers to fully understand their policies.