How can I insure a car not in my name in Texas?

Gap insurance in Texas works the same way as gap insurance in the rest of the U.S. It pays the balance remaining on a car loan or lease contract after a liability, comprehensive, or collision policy pays out the actual cash value of a totaled vehicle.

The state of Texas doesn’t require any driver to carry gap insurance. However, certain lenders in Texas may require customers to carry ... read full answergap insurance – short for guaranteed asset (or auto) protection insurance – if they get a car loan or lease.

Best Gap Insurance Companies in Texas

• Esurance
• Nationwide
• Shelter Insurance
• The Hartford
• Progressive

Dozens of companies, including banks and dealerships, offer gap insurance in Texas. While you should take your time deciding which one is right for you, you can also have confidence in the fact that gap insurance works the same way in Texas as in the rest of the country.

More Gap Insurance Companies in Texas

The Texas Department of Insurance provides information about the companies that are licensed to sell personal gap insurance in the state. The following are some of the other insurance companies you may come across.

Consumers can contact the Texas Department of Insurance directly, at 800-252-3439, for more information about other companies authorized to provide gap insurance in the state.

The minimum liability car insurance requirements in Texas are $30,000 in bodily injury liability insurance per person ($60,000 per accident) plus $25,000 in property damage liability insurance. These requirements can also be written as 30/60/25.

Key Things to Know About Liability Car Insurance in Texas

• It covers others’ expenses. Liability insurance pays for others’ medical expenses and property damage after an accident you were responsible for.... read full answer
• There are penalties for driving without the required coverage. If Texas drivers do not satisfy Texas’s minimum liability requirements, they can face penalties for driving without insurance.
• Drivers should consider purchasing higher limits. Drivers should consider buying more than the minimum amount of liability coverage required by Texas law if they can afford it. If you cause an accident that results in damage beyond your policy limits, you will be personally responsible for paying the difference.
• Liability insurance will not cover all events. Texas drivers can also consider purchasing other types of car insurance in order to better protect themselves, given that liability insurance does not provide any coverage for the policyholder’s own injuries or property. For instance, both collision insurance and comprehensive insurance cover damage to the policyholder’s car. You will likely need these types of insurance if your vehicle is financed.

To learn more, check out WalletHub’s guides on how much car insurance you need and cheap car insurance in Texas.