As of January 1, 2020, the state of Texas prohibits named driver exclusion policies. A lot of Texas drivers will be affected by this change, as named driver policies were prevalent in the state. Let’s discuss what this new law means for Texas residents who have car insurance from Freeway or any other insurance provider.
Named and Unnamed Driver Policies
House Bill 259 prohibits insurers from delivering, issuing for delivery, or renewing named driver policies on or after January 1, 2020. A named driver policy is an automobile insurance policy that provides coverage only for drivers specifically named on the policy and not for all individuals residing in a named insured’s household.
An unnamed driver is someone who is not named on your policy and therefore does not drive the vehicle regularly.
When you purchased your Texas auto insurance policy, you had two options: you could cover everyone who uses your car, or opt for a more restricted definition of who is covered in exchange for a lower price. Many people chose the second option to save money.
If a driver is not listed on your car insurance policy and gets in an accident in your vehicle, you could be held responsible for damages.
What Should I Do?
You will need to contact your insurance agent to check your policy. If you had a named driver exclusion, your policy will need to be renewed immediately.
We’re Here to Help
If you have not updated your car insurance policy, don’t worry, we can help you. Our experienced agents will help happily answer any questions and help you find another car insurance policy that works best for you.
Call (800) 777-5620 or stop by one of our offices today and let us help you get car insurance that meets your needs. At Freeway, we are committed to providing affordable car insurance for Texas residents.