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Best Cheap Gap Insurance Companies in Iowa: Quotes, Discounts (2023)
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Written by
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.
Edited by
Tanveen Vohra
Editorial Manager
Tanveen Vohra is an editorial manager at Insurify specializing in writing about property and casualty insurance. Through her work, Tanveen helps consumers better understand the components of their insurance policies so they can make smarter purchase decisions.Tanveen's work has been cited by CNBC , Fox Business, Business Insider, Fortune, and Market Watch, among others.
Reviewed by
Amber Benka
Licensed Insurance Agent
Amber Benka is a licensed insurance agent specializing in auto, home, commercial, life, and health insurance.
Updated June 15, 2022
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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.
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Table of contents
- Gap Insurance in Iowa
- Best Companies for Gap Insurance in Iowa
- What is gap insurance?
- Who should buy gap insurance in Iowa?
- Iowa Gap Insurance Laws
- How much gap insurance do I need in Iowa?
- How Gap Insurance Works in Iowa
- How Much Gap Insurance Costs in Iowa
- How to Buy Gap Insurance in Iowa
- Frequently Asked Questions: Gap Insurance in Iowa
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 Company | Average Monthly Cost for Leased Cars in Iowa |
|---|---|
| Travelers | $103 |
| Nationwide | $131 |
| Midvale Home & Auto | $155 |
| Safeco | $171 |
| Dairyland | $187 |
| Liberty Mutual | $241 |
| The General | $262 |
| Bristol West | $291 |
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 Iowa
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.
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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.
