New Texas Law Challenges “Junk” Auto Insurance Policies
Our lawyers know that it is essential for every driver to have auto insurance. If a driver is involved in a car accident and he or she was responsible for causing that crash, the driver can be sued by those who were hurt or by loved ones who were killed in the accident. Most people don’t have enough personal money or assets to cover the costs of injuries or wrongful death lawsuits and car insurance policies make sure that innocent victims are paid and that those who cause wrecks don’t face financial devastation.
Unfortunately, there has been an increase in car insurance policies in Texas that fall far short of providing full coverage. Dubbed “junk” auto insurance policies according to the Dallas News, the official name of these policies is “named driver” auto policies. While cheaper, the “named driver” policies have restrictions on coverage that many people aren’t aware of and that leave drivers vulnerable.
Named Auto Insurance Policies Provide Limited Protection
Named auto insurance policies provide coverage not to a vehicle, as most insurance policies do, but instead to one particular driver who is named on the policy. In other words, unlike when you buy a traditional insurance policy, if you let someone drive your car and you have a named auto insurance policy, the person who drives your car is not covered. This is true not just if you lend the car to a friend or to an acquaintance but also if someone in your family who is not the named driver uses a car.
Auto Insurance
