Texas prohíbe las pólizas de seguro de auto para conductores autorizados en 2020
If you currently hold a named driver auto insurance policy in Texas, changes are coming down the road in 2020. Effective January 1, named driver auto policies will be prohibited in Texas by House Bill 259.
What’s a named driver policy?
A named driver policy provides auto coverage to drivers listed on the policy—but doesn’t provide coverage for household members who aren’t named. If a vehicle is driven by someone who lives in the same residence isn’t listed on the policy, they wouldn’t have coverage in an accident. However, drivers who don’t live in the same household but are listed on the insurance are provided coverage under a named driver policy.
What’s the difference between a named driver policy and a standard auto insurance policy?
Named driver policies are historically less expensive than standard policies. The main difference between the two is permissive use for those who live in the same household. Permissive use is a common feature of car insurance that extends coverage to another driver who may drive your car from time to time but isn’t always standard. Permissive use for those living at the same residence but not named on the policy isn’t included in a named driver policy.
For example, imagine a situation you may experience while living with roommates. You need to run to the store, but your car is blocked in by your roommates’ cars. With a Dairyland® auto insurance policy, you’d be covered by permissive use to grab the nearest set of keys and head to the store without fear of getting in an accident without coverage.
When does the law go into effect?
The law goes into effect as early as January 1, 2020, depending on your coverage expiration date. If you’re not sure when your policy expires, contact your insurance agent or double check your insurance card. According to Texas insurance code, an insurer must give a 30-day notice of nonrenewal to provide time for you to look for a new policy. That means you may receive a notice of nonrenewal toward the end of your policy term and will need to choose a new coverage plan that meets the requirements of Texas HB 259.
What if my car insurance coverage lapses?
If you miss a payment before your named driver policy expires, your insurer won’t be able to reinstate it in 2020 and you’ll need to find a new coverage plan.
Looking to make a change to your car insurance policy?
Policyholders don’t have to spend a lot of money for proper car insurance that covers their needs. You’ll find we deliver quality coverage with friendly, top-notch customer service. Contact us
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*La exactitud de los datos está sujeta a la fecha de publicación de este artículo.
