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Texas Bills Target ‘Named Driver’ Automobile Policies; Disclosure Rules Adopted - Not all insurance coverage is the same.

A pair of bills filed in the Texas Legislature would prohibit automobile insurers from issuing “named driver” policies in the state, but one would allow named driver exclusion under certain circumstances,

HB 318 by Rep. Mark Keogh, who represents part of Montgomery County, and HB 335 by Rep. Ed Thompson, representing part of Brazoria County, would add Subchapter H to Chapter 1952 of the Insurance Code to address “named driver” policies.

http://ads.wellsmedia.com/www/delivery/lg.php?bannerid=4992&campaignid=3002&zoneid=79&loc=http%3A%2F%2Fwww.insurancejournal.com%2Fnews%2Fsouthcentral%2F2015%2F01%2F15%2F354239.htm&cb=efa095020eThe bills define a named driver policy as one that provides “coverage only for drivers specifically named on the policy and not for individuals residing in a named insured’s household. The term includes an automobile insurance policy that has been endorsed to provide coverage only for drivers specifically named on the policy.”

While both measures would prohibit the issuance of named driver policies, HB 335 would permit a “named driver exclusion” on a policy “if the exclusion specifically names each excluded driver and does not exclude a class of drivers.”

If passed, the bills would apply to all automobile insurance companies in Texas and would affect policies written or renewed on or after Jan. 1, 2016.  Not all Auto insurance carriers and policies are the same- It is important to read your policy or do business with a reputable insurance agency.   Most people are unaware that their coverage is sub-standard until they file a claim.  It is worth your time and money to invest more than 15 minutes on obtaining a quote for coverage.

If you have any questions or would like one of our staff to review your policy and discuss your options with you, call us at 800-362-2809.

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