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Best Cheap Gap Insurance Companies in Iowa: Quotes, Discounts (2022)

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Doug Shaffer

By: Doug Shaffer

Edited by Tanveen Vohra | Reviewed by licensed insurance agent, Amber Benka

Last Updated June 15, 2022

Why you can trust Insurify

Insurify partners with top insurance companies and is a licensed agent in all 50 states. However, the insurance experts writing our content operate independently of our partners. Check out reviews from over 3,000 satisfied customers, how we make money, our data methodology, and our editorial standards.

Gap Insurance in Iowa

Many drivers in Iowa opt for a car loan or leasing program when purchasing a new vehicle. Although both are great options, they can leave the door open for financial hardship. For example, an accident that leaves your vehicle totaled could mean that you have to pay the remaining loan balance out of pocket. Gap insurance is a great way to protect against this. Insurify offers customers an interactive platform where they can quickly compare gap insurance quotes on a single page.

See More: Compare Car Insurance

Best Companies for Gap Insurance in Iowa

Regardless of whether you are currently leasing or plan on leasing a vehicle in the future, you will want to find an insurance company that offers affordable auto insurance. The following companies have a strong reputation in Iowa for providing affordable insurance coverage options such as gap coverage.

Insurance CompanyAverage Monthly Cost for Leased Cars in Iowa
Midvale Home & Auto$155
Liberty Mutual$241
The General$262
Bristol West$291
Disclaimer: actual quotes may vary based on the policyholder's unique driver profile.

What is gap insurance?

Gap insurance can come in handy for drivers who currently have an auto loan or a lease. The insurance will essentially help you pay off the difference between the cash value of your car and your loan if it is deemed a total loss as a result of an accident.

Even though it is common to use an auto loan to purchase a new car, not everyone does. That is why it's not mandatory to have gap insurance in Iowa like it is to have other coverages such as liability insurance, bodily injury liability insurance, and property damage liability insurance.

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Who should buy gap insurance in Iowa?

Gap insurance is a great option for any driver in Iowa looking at financing their vehicle through a lease program or with a car loan. In addition, if any of the following apply to you, then you should consider purchasing gap coverage:

  • You are planning on paying less than 20 percent for your down payment.
  • Your loan will last longer than five years.
  • You will be using a dealership leasing program to purchase your vehicle.
  • The car you are planning to buy will depreciate faster than normal.

Iowa Gap Insurance Laws

In Iowa, drivers are not legally required by the state to carry a gap insurance policy. However, they will still need other forms of insurance like liability coverage. Generally, the only way you may be required to have gap coverage is if you are working with a lender who requires it as part of your loan.

How much gap insurance do I need in Iowa?

To determine how much gap insurance you need, you will have to consider a couple of things. First, you will want to speak with the lender providing you with the financing for your new car. They often have requirements you will need to meet before they approve the loan.

Another item you will want to consider is the type of payout you want to receive should you need to use your gap insurance. Some plans will only pay out up to 25 percent, while others will pay off the entire loan, regardless of the situation.

Both types of policies have their benefits, but you may notice that the deductible and insurance premium will change based on the amount of coverage.

See More: How Much Car Insurance Do I Need?

How Gap Insurance Works in Iowa

Gap insurance is optional insurance that can be paired with other auto insurance policies, such as comprehensive coverage, collision coverage, or full coverage. The main job of gap insurance is to cover the gap between your car's current market value and the outstanding balance on your loan.

While gap insurance won't provide you with coverage for medical payments or other expenses, it does have a unique feature. If you pay your policy in advance and pay off your vehicle early, then you could get a reimbursement for any unused premiums.

How Much Gap Insurance Costs in Iowa

How much is gap insurance in Iowa?

The average cost to insure a leased vehicle in Iowa is $212 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.

Motorists living in Iowa tend to pay around $212 a month for standard auto insurance with gap coverage. Compared to other states, Iowa car insurance rates are about average. Depending on what city you live in, you may notice insurance quotes that are a little higher or lower than the state average.

See More: Average Cost of Car Insurance in Iowa

How to Buy Gap Insurance in Iowa

If you are required to purchase a gap insurance policy, you have several options available for where you can obtain the coverage. The most common places to find a policy are through a dealership, lender, or car insurance company. Each option has its benefits; however, insurance companies tend to offer the best auto insurance rates.

In Iowa, most insurance providers, including USAA, GEICO, and Progressive, offer gap insurance in addition to standard car insurance. This can make the process of finding the cheapest coverage difficult. It often means requesting multiple quotes and spending hours comparing rates.

With Insurify, there is no need to reach out to multiple insurance companies. Instead, Insurify will pull a list of quotes you qualify for and provide them on a single page after you answer a few simple questions. From there, you can quickly compare policy details and select the best plan for your current situation.

Frequently Asked Questions: Gap Insurance in Iowa

  • In Iowa, there aren't any state laws that require drivers to obtain a gap insurance policy. However, some drivers may still need to purchase guaranteed asset protection. If you plan on leasing a new vehicle or using an auto loan, some lenders might make it a requirement that you maintain gap insurance throughout the lifetime of the loan.

  • There are certain instances where you could get money back from your gap insurance policy once you pay off your vehicle. For example, if you paid your gap coverage up front and paid off your vehicle early, you would receive money back for any unused coverage.

  • There are many ways to find cheap gap insurance in Iowa. Still, the most effective is to shop around at multiple insurance companies. Often, it is the third, fourth, or fifth insurance provider that has the best rate. To assist you in quickly reviewing and comparing quotes, Insurify has an interactive platform that allows you to review a list of quotes on a single page.

Compare Car Insurance Quotes Instantly

  • Personalized quotes in 5 minutes or less
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  • The car insurance quotes displayed are based on an analysis of Insurify’s database of over 40 million quotes from 500 ZIP codes nationwide. To obtain representative rates, Insurify’s data science team performs frequent comprehensive analyses of the factors car insurance providers weigh to calculate rates including driver demographics, driving record, credit score, desired coverage level, and more.

    Insurify’s analysis also incorporates the Insurify Composite Score (ICS) assigned to each insurance provider. The ICS is a proprietary rating that weighs multiple factors reflecting the quality, reliability, and health of an insurance company. Ratings used to calculate the ICS include Financial Strength Ratings from A.M. Best, Standard & Poor’s, Moody’s, and Fitch; J.D. Power ratings; Consumer Reports customer satisfaction surveys and customer complaints; mobile app reviews; and user-generated company reviews. 

    With the above insights and ranking methods, Insurify is able to offer car insurance shoppers insight into how various insurance providers compare to one another in terms of both cost and quality. Note, actual quotes will vary based on unique attributes including the policyholder’s driver history and their garaging address.

Doug Shaffer
Doug Shaffer

Insurance 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.

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