Is gap coverage necessary for all drivers?
In situations where a vehicle’s value depreciates faster than a loan is paid off (a common occurrence), gap protection may cover the difference. Without this coverage, drivers who finance their vehicles might be personally liable for the remaining balance if their car is deemed a total loss.
Because lenders can’t trust that all drivers are able to personally cover the difference, gap protection is typically required for drivers who finance or lease their vehicles. Drivers who own their vehicles outright usually do not need this coverage.
Do credit scores affect auto rates in Texas?
Texas broadly allows insurance companies to consider a driver’s credit rating when calculating their premiums, in most cases. Drivers with lower credit ratings are considered riskier than those with higher ratings, potentially resulting in increased premiums for individuals with lower scores.
If your credit rating has improved since your last policy was issued, you may be eligible for a premium reduction.
Insurance agents with expertise in auto policies are well-versed in how credit ratings and other factors impact premiums. An experienced agent can help explore how your particular credit score affects premiums.