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 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 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 the 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 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?
Policyholders don’t have to spend a lot of money on proper car insurance that covers their needs. At Dairyland®, you’ll find we deliver quality coverage with friendly, top-notch customer service. Contact your Dairyland agent for a quote, and we will be happy to help you.
The general information contained in this Blog is for informational or entertainment purposes only. The information in this Blog is provided “as is” and without any warranties of any kind. Dairyland® and its affiliates (“Dairyland”) do not accept any responsibility related to the content or accuracy of the information contained in this Blog. The information contained in this Blog should not be mistaken for professional or legal advice. Any use of this Blog or any third-party website linked to this Blog is at the risk of the user. Dairyland is not liable to any person or entity for any direct, indirect, or consequential damages arising out of the use or inability to use this Blog or any third-party website linked to this Blog. The views and opinions contained in third-party websites referenced in this Blog are the views and opinions of third-party authors and may not represent the opinions or policies of Dairyland.
Dairyland® is affordable insurance that works for you.
No matter what journey you’re on, we’re all driving down the same road. And we’re here to help protect you when you need us most. For decades, customers like you have trusted Dairyland® for:
We offer customized coverage, money-saving discounts, flexible payment options, SR22s, and outstanding customer service.
Contact Gator Auto Insurance of Clearwater today to experience the Dairyland® difference for yourself.