Formula
Gap amount ≈ Loan balance − Vehicle ACV. If positive in year 1–3 of the loan, gap is worth carrying.
How to use it
- Look up your loan balance
- Look up your vehicle's actual cash value (KBB)
- Subtract — that's your gap exposure
- If exposure exceeds $2,000, gap insurance is worthwhile
Worked example
Owe $28,000, ACV $22,000 = $6,000 gap. Gap policy costs ~$60/year — clearly worth it.
Frequently asked questions
Where can I buy gap insurance?
Through your auto insurer (cheapest) or the dealership (most expensive).
When can I drop gap?
When your loan balance drops below your vehicle's ACV.
This calculator is for educational estimation only. For a binding quote, talk to a licensed Texas insurance agent or request a free quote.