Gap Insurance cost Texas If your automobile is stolen or totaled, gap insurance covers the difference between the value of the vehicle and what you owe. Gap insurance is sometimes a requirement of a loan or lease, however it is not legally required in Texas. In Texas, gap coverage averages $3,364 annually, with the lowest rates available from Auto Club Enterprises (AAA) is the most affordable gap insurance provider in Texas, with an average yearly premium of $2,215
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Although most lenders need gap coverage unless you make a sizable down payment when purchasing or leasing a car, it is not legally required in Texas. Many people end up owing more than their automobile is worth since autos usually depreciate more quickly than you make payments. In the event that your car is stolen or totaled, gap insurance covers the difference between the real cash value and what you owe.
Texas gap insurance typically costs $3,364, with the lowest rates available from Auto Club Enterprises (AAA). Rates differ by vehicle and driver, though.
Gap Insurance cost Texas Find out who needs gap insurance and more about it in Texas below.
Key takeaways: Gap Insurance cost Texas
- In Texas, gap insurance typically costs $3,364 per year.
- With an average rate of $2,215 year, Auto Club Enterprises (AAA) provides the most affordable gap coverage in Texas.
- In the event that your car is a total loss, gap insurance will pay the difference between the car’s value and the amount owed on a loan or lease.
How much is Gap Insurance cost in Texas?
Although rates vary by company, gap insurance in Texas typically costs $3,364 annually. Gap rates are also impacted by the price of your car. Because luxury or expensive cars typically lose value more quickly than regular cars, gap insurance would have to pay more, raising the cost of coverage.
Cheapest gap insurance companies in Texas
Auto Club Enterprises (AAA) is the most affordable gap insurance provider in Texas, with an average yearly premium of $2,215. Gap coverage is not available from all auto insurance providers, and rates differ greatly across them.
The most affordable Texas insurance providers for gap coverage can be seen in the chart below.
| Company | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Auto Club Enterprises (AAA) | $2,215 | $75 |
| Mercury Insurance | $3,251 | $33 |
| Progressive | $3,556 | $62 |
| Farmers | $3,899 | $90 |
Average Gap Insurance cost Texas by city
Gap Insurance cost Texas With an average rate of $3,941, Houston has the highest cost of gap insurance, while Bowie has the lowest average at $2,913. Your insurance premiums may vary depending on where you live in Texas. Because your car is more likely to be damaged or stolen in cities with greater crime and theft rates, auto insurance prices are higher there.
The average gap insurance premiums in Texas are displayed by city in this table.
| City | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Bowie | $2,913 | $78 |
| Bishop | $2,994 | $55 |
| Kermit | $3,000 | $80 |
| San Antonio | $3,087 | $60 |
| Frisco | $3,116 | $64 |
| Higgins | $3,139 | $96 |
| Austin | $3,156 | $66 |
| Crystal City | $3,167 | $74 |
| Beaumont | $3,209 | $56 |
| Fort Worth | $3,246 | $67 |
How much is gap insurance in Texas by age group?
Gap Insurance cost Texas Younger drivers have higher auto insurance costs because they are more prone to drive recklessly and lack the experience necessary to prevent collisions. Rates go drop as the driver becomes older. For instance, the average rate is $13,202 annually at age 18 and $4,129 annually at age 25.
The average Gap Insurance cost Texas by age are displayed in the table below.
| Age group | Auto insurance rates with gap premium | Gap premium |
|---|---|---|
| Teen | $13,202 | $227 |
| Young adult | $4,129 | $82 |
| Adult | $3,364 | $70 |
| Senior | $3,196 | $57 |
Is gap insurance required in Texas?
Texas law does not require gap insurance. But the coverage can be required by your lender.
Who should buy gap insurance in Texas?
If you have a Texas auto loan or lease, gap insurance can be necessary. Gap insurance is a smart option since cars degrade more quickly than the loan is paid down, so drivers who make a tiny down payment usually owe more than the vehicle is worth.
If you own your automobile or have made a sizable down payment to reduce your loan balance from the beginning, you don’t need gap insurance.
What is standalone gap insurance in Texas?
Standalone gap insurance is a policy of its own, not connected with your car insurance. Gap insurance is available from your lender or a private company as a separate policy.
Does gap insurance cover leased cars in Texas?
Texas gap insurance covers leased cars where the driver owes more than the vehicle’s current market value. Over time, you may remove gap coverage once your vehicle is worth more than what is owed.