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Is gap insurance required in Texas?

I’m taking out a sizable loan for a new car and I live in Houston. While I know that I need car insurance coverage, I wasn’t sure if the state required me to get gap insurance. Do I need gap insurance in Texas?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
If you’re taking out a
car loan
for a new car, we have good news—**
gap insurance
is not required in
Texas
**.
However, the instant you drive off the lot, your car can lose as much as 11% of its value. If you get into an accident, you’re liable to pay the difference between your car loan balance and the actual value of your car. In some cases, this can be thousands of dollars. So unless you can pay this out of pocket, gap insurance might be a smart move.
Gap insurance aside, you’re still going to need
full coverage car insurance
per the stipulations of your loan. This can get rather expensive, but
Jerry
has your back.
Jerry is a licensed insurance broker and insurance comparison tool that collects quotes from over 55 top-rated insurers in just 45 seconds. After you find a great rate, Jerry can help you buy new insurance and cancel your old policy. Users save an average of $800+ per year on car insurance.
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