Delaney Simchuk, Car Insurance Writer
No, gap insurance is not required in Texas or any other state. Even though gap insurance is never required by state law, auto lenders and lessors often make borrowers get this type of coverage to protect their investment in financed vehicles.
Gap insurance is an optional type of coverage that pays the “gap” between your car’s actual cash value (ACV) and the balance remaining on your car loan or lease if the vehicle is stolen or totaled. It is particularly useful for drivers with financed vehicles who made a small down payment or have a car that depreciates quickly.
Required Car Insurance Coverage in Texas
- $30,000 in bodily injury liability insurance per person ($60,000 per accident)
- $25,000 in property damage liability insurance
In addition to the coverage dictated by state law, lenders and lessors usually require comprehensive, collision and gap insurance for full coverage.
To learn more, check out WalletHub’s guides to gap insurance and how much insurance you need in Texas.
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