Cheap Gap Insurance in Texas (Cash Savings With These 9 Companies in 2024)
State Farm, Progressive, and Allstate offer the best cheap gap insurance in Texas, starting at just $5/month. These Texas gap insurance companies are renowned for competitive rates, personalized plans, and flexible payment options, making them ideal for Texas drivers seeking comprehensive gap insurance coverage.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
UPDATED: Oct 25, 2024
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Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.
UPDATED: Oct 25, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident auto insurance decisions. Comparison shopping should be easy. We are not affiliated with any one auto insurance provider and cannot guarantee quotes from any single provider. Our partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
17,759 reviewsCompany Facts
Gap Insurance in Texas
A.M. Best Rating
Complaint Level
Pros & Cons
17,759 reviews
13,128 reviewsCompany Facts
Gap Insurance in Texas
A.M. Best Rating
Complaint Level
Pros & Cons
13,128 reviews
11,413 reviewsCompany Facts
Gap Insurance in Texas
A.M. Best Rating
Complaint Level
Pros & Cons
11,413 reviewsThe leading choices for cheap gap insurance in Texas are State Farm, Progressive, and Allstate, known for offering comprehensive auto insurance with gap coverage at the best rates.
The top three companies offer flexible policy options to help Texas drivers find affordable gap insurance that fits their lifestyle. By comparing these various providers, Texans can find policies that meet legal requirements and provide financial peace of mind.
Our Top 9 Company Picks: Cheap Gap Insurance in Texas
Company Rank Monthly Rates A.M. Best Best For Jump to Pros/Cons
#1 $5 B Personalized Plans State Farm
#2 $7 A+ Flexible Payments Progressive
#3 $8 A+ Comprehensive Coverage Allstate
#4 $9 A++ Military Discounts USAA
#5 $10 A Customer Education Farmers
#6 $11 A+ Multiple Discounts Nationwide
#7 $13 A Replacement Coverage Liberty Mutual
#8 $14 A Customer Support American Family
#9 $15 A++ Flexible Plans Travelers
Keep reading to choose a Texas gap insurance policy that aligns with your needs and budget. Ready to find cheaper car insurance coverage? Enter your ZIP code above to begin.
- State Farm offers the best cheap gap insurance rates in Texas at $5/month
- Progressive’s flexible payments and discounts help lower TX gap insurance costs
- Comparing gap insurance online ensures compliance with Texas laws
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#1 – State Farm: Top Pick Overall
Pros
- Personalized Coverage: Based on our State Farm auto insurance review, the company offers tailored gap insurance plans that cater to individual needs in Texas.
- Strong Agent Network: Extensive local agent presence ensures personalized service for gap insurance in Texas.
- Reputation for Reliability: State Farm is trusted by Texans for consistent performance and reliability in gap insurance coverage.
Cons
- Low Financial Ratings: State Farm has the lowest A.M. Best rating out of the Texas gap insurance companies on this list.
- Discount Variability: Some national gap insurance discounts may not be offered in all parts of Texas.
#2 – Progressive: Cheapest Flexible Payments
Pros
- Flexible Payment Options: Progressive provides various payment plans making it easier for Texans to manage gap insurance costs.
- Discount Opportunities: Multiple discount options for qualifying gap insurance customers in Texas are available.
- Online Tools: Explore our Progressive auto insurance review to learn about their superior digital tools for managing gap insurance policies in Texas.
Cons
- Customer Service Variability: Texans report inconsistent experiences with customer service for gap insurance.
- Policy Adjustments: Some users find adjusting gap insurance policies in Texas less straightforward.
#3 – Allstate: Cheapest Comprehensive Coverage
Pros
- Extensive Coverage Options: Allstate offers a wide range of gap insurance coverages in Texas that go beyond basic needs.
- Claims Satisfaction: Allstate has high customer satisfaction rates in Texas with the gap insurance claims process.
- Supportive Agent Network: See our Allstate auto insurance review for detailed ratings of the strong support network of local agents across Texas for gap insurance.
Cons
- Premium Costs: Allstate sets higher premiums for its more comprehensive gap insurance coverage in Texas.
- Policy Upselling: Some customers report pressure to upgrade gap insurance policies unnecessarily in Texas.
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#4 – USAA: Cheapest With Military Discounts
Pros
- Military Discounts: In our USAA auto insurance review, discover the special rates for military members and their families on gap insurance in Texas.
- Customer Loyalty: Texan military families have high loyalty and retention rates for gap insurance.
- Exceptional Service: USAA gap insurance in Texas is noted for outstanding customer service and claims support.
Cons
- Limited Eligibility: Services for gap insurance in Texas are restricted to military members, veterans, and their families.
- Coverage Specifics: Some drivers want more flexibility in gap insurance coverage terms in Texas.
#5 – Farmers: Best for Customer Education
Pros
- Educational Resources: Delve into our Farmers auto insurance review to explore the extensive resources offered to help Texans understand gap insurance better.
- Customer Engagement: Farmers is proactive in customer interactions to ensure informed gap insurance decisions in Texas.
- Policy Options: Diverse Farmers gap insurance policy options cater to different needs and budgets in Texas.
Cons
- Cost vs. Value: Some users feel the premiums for gap insurance in Texas do not always match the coverage benefits.
- Response Times: Local Texas gap insurance reviews report occasional delays in customer service responses.
#6 – Nationwide: Cheapest With Multiple Discounts
Pros
- Multiple Discount Offers: Nationwide’s wide array of discounts can significantly lower premiums for gap insurance in Texas.
- Customizable Plans: View our Nationwide auto insurance review to learn more about the flexibility in gap insurance plan features and payment schedules in Texas.
- Financial Stability: Nationwide receives an A+ rating from A.M. Best and is known as one of the most reliable gap insurance companies in Texas.
Cons
- Complexity in Discounts: Navigating the multiple discounts for gap insurance in Texas can be complex.
- Customer Service: Some variability in service quality was noted by gap insurance users in Texas.
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#7 – Liberty Mutual: Cheapest Replacement Coverage
Pros
- Superior Replacement Features: Liberty Mutual offers new and better car replacement coverage with gap insurance plans in Texas.
- Discount Availability: Liberty Mutua’s broad range of discounts enhances affordability for gap insurance in Texas.
- Online Accessibility: Read our Liberty Mutual auto insurance review to see how the company provides a strong online platform to easily manage Texas gap insurance claims.
Cons
- Higher Rates: Liberty Mutual has generally higher rates for the comprehensive features of gap insurance in Texas.
- Policy Clarity: Some customers find policy details and exclusions for gap insurance in Texas to be unclear.
#8 – American Family: Best Customer Support
Pros
- Exceptional Support: According to our American Family auto insurance review, the company offers top-rated customer support for gap insurance inquiries and claims in Texas.
- Loyalty Rewards: AmFam offers rewards and discounts for long-term gap insurance policyholders in Texas.
- Comprehensive Coverage: American Family gap insurance comes with broad coverage options that cater well to families in Texas.
Cons
- Pricing Variability: Some drivers report inconsistent pricing and quotes for gap insurance in Texas.
- Documentation: Processing AmFam gap insurance claims in Texas can require extensive documentation.
#9 – Travelers: Best Financial Strength
Pros
- Financial Ratings: With an A++ A.M. Best rating, Travelers is one of Texas’s most financially stable gap insurance companies.
- Industry Experience: Travelers gap insurance brings ten decades of experience to Texas drivers.
- Innovative Tools: With our Travelers auto insurance review, learn about the innovative tools and apps provided for policy management of gap insurance in Texas.
Cons
- Cost Efficiency: Some Texas gap insurance plans may be pricier than market competitors.
- Policy Adjustments: Adjusting or updating gap insurance policies in Texas can sometimes be cumbersome.
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Exploring Texas Gap Insurance Rates and Discounts
When picking out the best gap insurance in Texas, it’s essential to understand the costs and potential savings opportunities available to you. This first table provides a comprehensive comparison of monthly rates for coverage with gap insurance from the top Texas companies:
Gap Insurance Monthly Rates in Texas by Provider
Insurance Company Monthly Rates
$8
$14
$10
$13
$11
$7
$5
$15
$9
Key factors that shape the cost of your policy include the specific coverage terms offered by insurers, Texas minimum auto insurance requirements, and the financial health of the insurance companies, often reflected in their A.M. Best ratings.
State Farm is the cheapest gap insurance company in Texas, with rates starting at $5/month. However, comparing auto insurance discounts can also significantly reduce gap insurance costs, making it another important factor to consider when choosing a provider.
Understanding the rates and available discounts is key to making an informed decision about gap insurance in Texas. From multi-policy discounts to special offers for good drivers, this table highlights the various discounts available that can make a real difference in your budget:
Auto Insurance Discounts From the Top Providers for Gap in Texas
| Insurance Company | Available Discounts |
|---|---|
| Bundling, Safe Driver, Anti-Theft |
| Loyalty, Multi-Vehicle, Defensive Driving Course |
| Bundling, Good Student, Homeownership |
 | Early Shopper, New Vehicle, Alternative Energy |
| SmartRide, Bundling, Accident-Free |
| Snapshot, Continuous Insurance, Multi-Car |
| Drive Safe & Save, Good Driving, Good Student |
| Bundling, Hybrid/Electric Vehicle, Continuous Coverage |
| Military Affiliation, Safe Driver, New Vehicle |
Reviewing these tables together gives you a complete picture of what you might pay for Texas gap insurance and how you can maximize your savings.
Texas City Traffic: Annual Accidents and Claims Data
The occurrence of at-fault accidents and claims across Texas cities highlights the necessity for targeted road safety measures and insurance coverage. This data reveals varying safety standards, underlining the importance of customized insurance solutions.
The table shows annual accidents and insurance claims in seven major Texas cities. Houston leads in both categories, followed by Dallas and San Antonio, which are essential for determining needed auto insurance coverage.
Texas Accidents & Claims per Year by City
| City | Accidents per Year | Claims per Year |
|---|---|---|
| Arlington | 18,000 | 16,000 |
| Austin | 35,000 | 30,000 |
| Dallas | 60,000 | 55,000 |
| El Paso | 20,000 | 18,000 |
| Fort Worth | 40,000 | 35,000 |
| Houston | 75,000 | 65,000 |
| San Antonio | 50,000 | 45,000 |
Data shows high traffic incidents and claims in cities like Houston and Dallas, highlighting the need for robust auto insurance and road safety programs. When selecting insurance coverage, these statistics are crucial for residents to ensure sufficient protection against losses.
Texas Auto Insurance: Factors Impacting Your Premiums Explained
Assessing the factors affecting Texas auto insurance rates offers insights into the risk landscape and key cost determinants. This examination aids residents in comprehending how different elements can influence their insurance premiums.
The table below grades key factors affecting auto insurance premiums in Texas. Each category is assessed for its potential to influence insurance costs, from weather-related risks to the rate of uninsured drivers. These grades help identify areas where improvements could reduce insurance costs.
Texas Report Card: Auto Insurance Premiums
| Category | Grade | Explanation |
|---|---|---|
| Weather-Related Risks | B | Frequent storms and floods but less severe than coastal states |
| Average Claim Size | B | Moderate claim size, influenced by rising medical costs |
| Vehicle Theft Rate | B- | Moderate theft rate, especially in urban areas |
| Traffic Density | C+ | High traffic in metro areas increases accident risks |
| Uninsured Drivers Rate | C | Relatively high rate of uninsured drivers in Texas |
The evaluation reveals significant factors that influence auto insurance premiums in Texas, such as weather-related risks and high traffic density. Understanding these factors can guide residents in choosing appropriate coverage levels and potentially help policymakers and insurers develop strategies to manage risks and control insurance costs effectively.
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Essential Guide to Common Texas Car Insurance Claims
Understanding the common types of auto insurance claims in Texas helps drivers prepare for potential risks and choose appropriate coverage. This overview details the most frequent claim types, their prevalence, and associated costs.
The table shows Texas’s five most common auto insurance claims, showing the percentage of total claims and average cost for each type. This data is vital for drivers to assess which insurance coverages, such as collision or comprehensive, might be necessary based on common risks.
5 Common Auto Insurance Claims in Texas
| Claim Type | Portion of Claims | Cost per Claim |
|---|---|---|
| Collision | 30% | $4,000 |
| Comprehensive | 25% | $2,000 |
| Uninsured Motorist | 20% | $5,000 |
| Personal Injury | 15% | $12,000 |
| Weather-Related Damage | 10% | $3,500 |
This data highlights the importance of diverse auto insurance coverages for Texas drivers, reflecting common risks like collisions and weather-related damages. By understanding the types of claims and their costs, drivers can better tailor their policies to protect against financial losses from the most prevalent issues on Texas roads.
Cost-Saving Discounts in Texas Auto Insurance Policies
Exploring auto insurance discounts available in Texas can significantly reduce premium costs for drivers. This summary assesses various discount types, their potential savings, and which insurance providers offer them, helping Texas drivers maximize their savings.
The table below categorizes popular auto insurance discounts in Texas by their effectiveness (graded A to B), the savings they offer, and the insurance providers that participate. Discounts such as bundling and safe driver offer substantial savings, essential for cost-conscious drivers looking to reduce their insurance expenses.
Texas Report Card: Auto Insurance Discounts
| Discount Name | Grade | Savings | Participating Providers |
|---|---|---|---|
| Bundling | A | 20% | State Farm, Geico, Allstate, Progressive |
| Safe Driver | A- | 25% | USAA, Liberty Mutual, Farmers, Nationwide |
| Good Student | B+ | 15% | Allstate, Geico, Progressive, Farmers |
| Low Mileage | B+ | 10% | Liberty Mutual, Allstate, Farmers |
| Anti-Theft | B | 10% | Geico, State Farm, Progressive, Nationwide |
The value of leveraging discounts to lower auto insurance premiums in Texas. These discounts can lead to considerable savings, whether for safe driving, good academic performance, or vehicle safety features. Drivers should consult with their providers to understand which discounts they qualify for and ensure they get the best possible rates based on their eligibility.
Savvy Strategies for Cheap Texas Gap Insurance
When protecting your vehicular investment with gap insurance in Texas, a strategic approach can save time and money. Here are some smart strategies to consider:
- Assess Vehicle Depreciation: If your car depreciates quickly, gap insurance becomes essential to cover the difference between your loan balance and the car’s actual value.
- Bundle Policies: Consider bundling gap insurance with your existing auto policy. Many insurers offer discounts for multiple policies, which can lower your overall costs.
- Shop Around: Don’t settle for the first quote. Compare offers from multiple insurers to ensure you’re getting the best coverage at the best price.
- Review Loan Terms: Check if your loan or lease already includes gap insurance, so you don’t pay for redundant coverage.
- Time It Right: Purchase gap insurance at the right time to maximize its benefits, ideally when buying or leasing a new vehicle.
This approach ensures that you choose gap insurance in Texas that is both effective and affordable. With the right strategy, you can optimize your coverage to meet your needs efficiently and learn how to lower your auto insurance rates.
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The Best Providers of Texas Gap Insurance
State Farm, Progressive, and Allstate have cheap gap insurance in Texas. Coverage with gap starts at just $5/month with State Farm, while Progressive and Allstate offer competitive rates and discounts on gap coverage.
State Farm consistently outperforms competitors in Texas, offering the most reliable and affordable gap insurance coverage in the market.Dani Best Licensed Insurance Producer
Gap insurance in Texas serves as a vital safety net for drivers who want to avoid financial pitfalls in case of a total loss. It’s not just about covering a gap — it’s about peace of mind, knowing that you’re protected from unexpected expenses. It also helps to learn how to get fast and free auto insurance quotes to further enhance your security.
By carefully evaluating your options, understanding the key factors, and applying smart strategies, you can secure a policy that fits your needs and budget perfectly. Remember, the right gap insurance is more than just a policy — it’s a smart financial move for your future.
Finding cheap car insurance quotes is easy. Just enter your ZIP code into our comparison tool below to instantly compare quotes near you for free.
Frequently Asked Questions
Who is the cheapest gap insurance company in Texas?
The cheapest auto insurance companies for gap coverage in Texas are State Farm and Progressive. Both companies offer coverage with gap insurance for less than $70/month. It’s recommended to compare quotes from multiple providers to find the best deal for your specific situation.
How much is gap insurance through a dealership in Texas?
Gap insurance purchased through a dealership in Texas can cost anywhere from $400 to $700 as a one-time fee. However, this is often more expensive than purchasing gap insurance through your auto insurer, which might charge between $20 and $40 annually. Find cheap gap insurance quotes by entering your ZIP code below.
Do you need gap insurance in Texas?
Gap insurance is not legally required in Texas, but it is highly recommended if you have a loan or lease on your vehicle. It covers the difference between what you owe on your car and its actual cash value in case of a total loss, protecting you from potentially significant out-of-pocket expenses.
Does Texas require gap insurance?
No, Texas minimum insurance requirements don’t require gap insurance. However, if you are financing or leasing a vehicle, your lender or leasing company may require you to have gap insurance as a condition of the loan or lease agreement.
What is the minimum insurance coverage in Texas?
The minimum insurance coverage required in Texas is liability insurance, which includes $30,000 for bodily injury per person, $60,000 per accident, and $25,000 for property damage (commonly referred to as 30/60/25 coverage). Gap insurance is optional and provides additional protection beyond this minimum requirement.
How long does it take for gap insurance to pay in Texas?
Typically, it can take anywhere from a few weeks to a couple of months for gap insurance to pay out in Texas. The timeframe depends on how quickly the claim is processed, which involves coordinating between your primary auto insurer, the gap insurance provider, and your lender.
How does gap insurance work in Texas?
Gap insurance in Texas works by covering the difference between your car’s actual cash value (ACV) and the amount you still owe on your auto loan or lease if your vehicle is totaled or stolen. For example, if you owe $25,000 on your car loan but your car’s ACV is only $20,000, gap insurance would cover the $5,000 difference.
How do I claim from gap insurance in Texas?
To claim gap insurance in Texas, you will first need to file an auto insurance claim with your provider. Once your primary insurer pays out the actual cash value of your totaled or stolen vehicle, you can submit a gap insurance claim to cover the remaining balance on your loan or lease. You’ll need to provide documentation such as the settlement letter from your primary insurer, loan payoff information, and a copy of the police report if applicable.
Will gap insurance cover a blown engine in Texas?
No, gap insurance in Texas does not cover mechanical failures such as a blown engine. Gap insurance is specifically designed to cover the difference between the loan balance and the actual cash value of your vehicle in case of a total loss due to an accident or theft. Mechanical repairs are typically covered under a vehicle warranty or separate mechanical breakdown insurance.
What is gap health insurance in Texas?
Gap health insurance in Texas is a different type of coverage and is not related to auto insurance. It is designed to cover the “gap” in costs that are not paid by your primary health insurance plan, such as deductibles, copayments, and other out-of-pocket expenses.
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Brad Larson
Licensed Insurance Agent
Brad Larson has been in the insurance industry for over 16 years. He specializes in helping clients navigate the claims process, with a particular emphasis on coverage analysis. He received his bachelor’s degree from the University of Utah in Political Science. He also holds an Associate in Claims (AIC) and Associate in General Insurance (AINS) designations, as well as a Utah Property and Casual...
Licensed Insurance Agent
Editorial Guidelines: We are a free online resource for anyone interested in learning more about auto insurance. Our goal is to be an objective, third-party resource for everything auto insurance related. We update our site regularly, and all content is reviewed by auto insurance experts.