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.
Guides and coverage behind this calculator
Pays the difference between your loan balance and your car's value.
If you financed or leased a vehicle in El Paso, gap coverage could save you thousands after a total loss.
Gap insurance is not required in Texas, but lenders often demand it. Here is how Texas regulates gap products and how to choose between dealer and insurer gap.
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Auto loans come with insurance strings attached. Here's how to satisfy your lender without overpaying.
Every calculator lives in our El Paso insurance calculator hub. When you're ready for real numbers, compare auto insurance in El Paso or ask for a free policy review.
This calculator is for educational estimation only. For a binding quote, talk to a licensed Texas insurance agent or request a free quote.