120+ more*Quotes generated for Insurify users from Texas within the last 10 days. Last updated on July 17, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
*Quotes generated for Insurify users from Texas within the last 10 days. Last updated on July 17, 2026. Actual quotes may vary based on the policy buyer’s unique driver profile.
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Updated
With more than 33% of Texas drivers financing or leasing a vehicle, according to Insurify data, gap insurance can offer a much-needed financial safety net. If you total your vehicle, you might be stuck with an outstanding car loan on an inoperable vehicle, unless you have gap insurance. This coverage bridges the gap between an insurance payout and an outstanding loan amount.
Here’s what you need to know about gap insurance in Texas.
If you’re looking for gap insurance, it’s a good idea to shop around for a policy in order to lock in the cheapest rates for your situation. Below, you can learn more about a few of the best insurance companies in Texas offering gap insurance.
Gap Insurance Company | Average Monthly Quote | Best For |
|---|---|---|
| Allstate | $3 | Cheap rates |
| USAA | $4 | Veterans |
| Progressive | $3 | Tech-savvy drivers |
| User Reviews | 3.8 |
|---|---|
| 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. | 8.9 /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. | $61/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 |
Allstate's score | Industry average | |
|---|---|---|
| Coverage options | 3.8 | 3.2 |
| Customer service | 3.8 | 3.6 |
| Discounts | 3.8 | 2.9 |
| Policy transparency | 3.7 | 3.1 |
| Value | 3.2 | 2.9 |
Drivers appreciate the friendly customer service and efficient claims processing, but many find the rates too high and experience unexpected price increases. Some also report poor communication from agents.
Allstate offers Texas drivers a gap insurance add-on that can help protect finances in the event of a total vehicle loss. If you want to use this coverage, you’ll need to buy it when you purchase the vehicle. Although this requires a bit of planning, the relatively low rates could make it a worthwhile option.
Covers the primary auto insurance deductible, up to $1,000
Gap coverage available on vehicles financed up to 96 months
May waive up to $50,000 of the loan balance
Higher-than-expected number of complaints with the National Association of Insurance Commissioners (NAIC)
Can only add gap coverage at the time of purchase
Below-average J.D. Power customer satisfaction rating in Texas
| User Reviews | 4.9 |
|---|---|
| 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. | 9.1 /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. | $78/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. | $152/mo |
USAA's score | Industry average | |
|---|---|---|
| Coverage options | 4.9 | 3.2 |
| Customer service | 4.8 | 3.6 |
| Discounts | 4.9 | 2.9 |
| Policy transparency | 4.9 | 3.1 |
| Value | 4.9 | 2.9 |
Customers appreciate the insurer’s reliable customer service and claim handling but express concerns about high rates and frequent price increases. Some also find the insurer’s security protocols and communication methods frustrating.
USAA offers a suite of insurance products to the 1.4 million Texan veterans and other Texas drivers with a qualifying military connection. USAA offers car replacement assistance coverage that works similarly to gap insurance. If you total your vehicle, this coverage pays out 20% more than the vehicle’s actual cash value (ACV), which should help pay off the remaining loan balance.
Affordable coverage option
Vehicle can be any age for car replacement coverage
No interest charges on car replacement coverage
Not available for leased vehicles
Limited to veterans and others with a qualifying military connection
Must have a full-coverage policy through USAA
| JD Power J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale. | 616 |
|---|---|
| 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. | 8.7 /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. | $64/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. | $117/mo |
Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.
Progressive offers a hassle-free insurance experience for Texas drivers who are comfortable managing their insurance needs online. The company offers a suite of digital tools, including a highly rated mobile app.
Progressive offers loan/lease payoff coverage that’s similar to gap insurance. After total vehicle loss, this coverage would pay the difference between what you owe and the vehicle’s value, up to your coverage limit.
Affordable coverage in Texas
No interest charges
Easy to add to your full-coverage policy
Coverage limits may apply
Must have a full-coverage policy with Progressive
Below-average J.D. Power customer satisfaction rating in Texas
Gap insurance, or guaranteed asset protection, is an optional coverage designed to protect your wallet. If you experience total vehicle loss — due to an accident or theft — gap insurance helps pay off the remaining loan balance, allowing you to walk away without making additional car payments. Here’s how it works:
The insurer totals the vehicle. During the claims process, the insurer will determine whether to declare the vehicle a total loss. Texas insurers make this decision based on whether the potential repair costs surpass the vehicle’s ACV.
Full-coverage policy covers ACV. If your insurer has totaled your vehicle, your full-coverage policy will pay out your vehicle’s ACV.
Gap insurance covers the remaining loan balance. If you owe more than the vehicle is worth, your gap insurance policy would pay out the difference.[3]
Ultimately, gap insurance allows you to avoid having a remaining loan balance attached to an inoperable vehicle.
Compare rates from the nation’s leading insurance companies
Texas drivers who add gap insurance to a full-coverage policy through an insurance company pay an average of $2–$7 more per month. The average cost of a full-coverage policy in Texas is $205 per month.
Adding gap insurance to an existing policy is relatively affordable, but buying coverage through your car dealership or lender typically costs more.
In Texas, as in other states, gap insurance covers the difference between your auto loan balance and your car’s ACV after total vehicle loss.
Let’s say you wake up to discover someone stole your vehicle with a $25,000 loan balance. After filing a claim with your full-coverage policy, the insurer pays out the ACV of $20,000, which you use to pay down the majority of your remaining loan balance.
But you still owe $5,000 on your loan balance. That’s when gap insurance steps in to cover the difference, wiping away the remaining loan balance and allowing you to move forward without the remaining loan balance holding your finances back.
It’s important to understand what gap insurance does and doesn’t cover.
What It Covers | What It Doesn’t Cover |
|---|---|
|
|
Full-coverage policies typically include comprehensive coverage and collision coverage, in addition to higher liability coverage limits. But simply purchasing a full-coverage policy doesn’t provide gap coverage. Instead, gap insurance is often an add-on to your full-coverage policy.
The following table highlights key distinctions between full-coverage and gap insurance policies.
Coverage Feature | Full Coverage | Gap Insurance |
|---|---|---|
| Covers repairs | Yes | No |
| Covers loan gap | No | Yes |
| Covers car theft or total | Yes | Yes |
| Required by state law | No | No |
| Ends after you pay off the car | No | Yes |
Although Texas state law doesn’t require drivers to carry gap insurance, it makes sense for some drivers.[4] Gap insurance might be a good idea if you’re:
Leasing a new vehicle
Financing a new car with a down payment of less than 20%
Financing a new vehicle for 60 months or more
Rolling negative equity into a new car loan through a trade-in
Since more than one in three Texas drivers finance or lease their vehicle, many can benefit from gap insurance. But you likely don’t need gap insurance if you:
Bought your car in cash
Owe less than the vehicle is worth
Made a large down payment
Paid off your vehicle or sold it
Insurify partners with 120+ top insurers for real quotes
In the Lone Star State, it’s possible to buy gap insurance from a car dealership, insurance company, or lender. It’s often convenient to purchase gap insurance through your lender or a car dealership, but you can typically find the cheapest gap insurance from an insurance company.
The table below shows the key pros and cons of each gap insurance option.
Gap Insurance Source | Pros | Cons | Add-On or Stand-Alone? |
|---|---|---|---|
| Car dealership |
|
| Stand-alone |
| Auto insurance company |
|
| Add-on to an existing full-coverage policy |
| Bank |
|
| Stand-alone |
| Credit union |
|
| Stand-alone |
| Online insurer |
|
| Stand-alone or add-on |
If you still have questions about gap insurance, the following answers may help.
If your insurer totaled your vehicle or someone stole it, your full-coverage policy will pay the vehicle’s ACV. If your auto loan balance exceeds the ACV, gap insurance can cover the remaining difference.
No. The state of Texas doesn’t require drivers to carry gap insurance.
Gap insurance costs vary. But Texas drivers pay an average of $2–$7 more per month to add gap insurance to a standard full-coverage policy, according to Insurify data.
Yes, it’s possible to purchase gap insurance for a used vehicle in Texas.
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7+ years writing insurance and personal finance content
Contributor to top media, including USA Today
Featured in
Licensed auto and home insurance agent
4+ years experience in insurance and personal finance editing
NPN: 20564519
Featured in
Media relations director for Insurance Information Institute
20+ years in insurance and communications
Impartial, independent expert
At Insurify, our goal is to help customers compare insurance products and find the best policy for them. We strive to provide open, honest, and unbiased information about the insurance products and services we review. Our hard-working team of data analysts, insurance experts, insurance agents, editors and writers, has put in thousands of hours of research to create the content found on our site.
We do receive compensation when a sale or referral occurs from many of the insurance providers and marketing partners on our site. That may impact which products we display and where they appear on our site. But it does not influence our meticulously researched editorial content, what we write about, or any reviews or recommendations we may make. We do not guarantee favorable reviews or any coverage at all in exchange for compensation.
