The Best Gap Insurance Companies in Illinois

Gap insurance isn’t a requirement in Illinois, but it’s still a good idea for financed vehicles. For the best rates, check out your options with your insurance provider.
Written by Liz Jenson
Reviewed by Amy Bobinger
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Gap insurance
in Illinois isn’t required, meaning you don’t have to get this type of coverage if you don’t want to. However, this type of coverage can come in really handy if your car is totaled, stolen, or otherwise classified as a total loss while you’re still upside down on your loan.
You can get gap insurance for your leased vehicle in three places in Illinois: your car dealership, the institution where you took out your
car loan
, or your current
car insurance
provider. Of these three options your car insurance company will typically be the cheapest, but finding the right provider for your gap insurance may prove challenging—particularly since this type of coverage isn’t offered by all insurers.
To help you find the right gap insurance policy for you, let’s take a closer look at the gap insurance options available to drivers in Illinois.
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The best gap insurance companies in Illinois

Gap insurance isn’t offered by every provider in Illinois, meaning that you might need to
switch insurance companies
if you’re set on getting this type of coverage. Even some big-name providers like
GEICO
won’t offer gap insurance, and others (like
State Farm
) only offer gap insurance to drivers who already finance their car loans through that same insurance provider.
When shopping around, it’s a good rule of thumb to compare insurance quotes from three to five companies to find the best deal on gap insurance in Illinois. 

How does gap insurance work in Illinois?

Gap insurance (or, “guaranteed asset protection”) works the same way in most states. This coverage represents the difference between a financed or leased vehicle’s
actual cash value
and the remaining balance of any lease or loan payments.
In order to add gap coverage, your insurance policy must include both
collision coverage
and
comprehensive coverage
. You’ll also only need gap insurance if you bought your car on loan or lease. If you’ve already paid off your vehicle, or if you bought your car without any financing, you won’t need gap insurance at all!
Even if you’ve already declined gap coverage from the dealership, you might still be able to get this type of insurance from another provider. However, your vehicle will need to meet certain criteria in order to qualify for gap insurance. Those criteria might include:
  • Being less than three years old 
  • Having no prior damage
  • You are the first owner of the vehicle (or you are the second owner of your vehicle and have been OK’d by your provider)
  • Meeting any mileage and/or value restrictions set by your insurer

What does gap insurance cover?

The main reason for gap insurance is depreciation. Your vehicle will begin to lose value as soon as you drive away from your dealership, and will continue to lose value over time. Your car will depreciate the most rapidly within the first year of ownership and, according to the
Insurance Information Institute (III)
, will lose about 20% of its value during this 12-month period.
Gap insurance exists to cover the difference between the depreciated value of your vehicle and the amount of money you owe on your loan during this period of time. If you get into an accident and
total your car
while you still owe more than your vehicle is worth, gap insurance will cover the difference between your collision insurance payout and the remaining amount on your car loan. Depending on the insurer and policy you choose, your gap coverage could even pay your
insurance deductible

The average monthly cost of gap insurance in Illinois

Depending on where you get your gap insurance, it could cost you anywhere from $20 per year to $700 in total (or from $2 to $30 per month on average). Considering that most people only hold gap insurance for one to two years of vehicle ownership, there’s clearly a huge range of options for gap insurance rates.
The main factor in your gap insurance rates is your gap insurance provider. To illustrate this point, check out the average rates for different gap insurance options:
  • Your lender, like a bank or credit union: $200 to $700 in total                        
  • Your car dealership: $200 to $700 in total
  • An add-on to an existing car insurance policy: $20 to $40 per year

Is gap insurance worth it in Illinois?

Since gap insurance in Illinois is optional, not every driver will want to pay extra for this type of coverage. However, getting gap insurance may be a good idea if you:
  • Made a small
    down payment
    of less than 20% on your new vehicle 
  • Bought a vehicle with a high depreciation rate, like a
    BMW
    or another
    luxury car
  • Drive your car often, particularly if you drive over 15,000 miles per year
  • Have a
    long loan term
    , particularly if your loan is 72 or 84 months
  • Traded in a vehicle and rolled over negative equity from a prior loan
Purchasing gap insurance as an add-on won’t make your policy much more expensive and can save you lots of money if you get into an accident while you’re still upside-down on your loan. As such, gap insurance is often a good idea.
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Jerry
a try. Let me tell you—the process is so easy and simple, and they really find you the best prices for your coverage level. Getting insurance for my new car was quick and easy!” —Joanna D.
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