Gap insurance in Texas covers the difference between your car loan balance and the vehicle's actual cash value if it's totaled or stolen. It's optional but beneficial for those with new or nearly new financed or leased vehicles, especially with low down payments or long loans. Costs range from $50-$150 annually through insurers, often cheaper than dealerships. Gap insurance is not required by law but can prevent significant out-of-pocket expenses in total loss situations.
