Texas Watch


When car wrecks happen, Texans rely on insurance to help them get back on their feet. But with over 1.5 million vehicles driving with “phantom coverage,” Texas families are finding themselves unprotected and hung out to dry by insurers selling junk policies.

Executive Director Ware Wendell Testifies in Support of HB 915

According to TDI’s 2015 survey, 1.5 million Texas vehicles were “insured” on Named Driver Policies. These policies, better known as Phantom Policies, fail to cover any household member not named specifically in the policy. This means a policyholder’s child or spouse may not be covered in the event of an accident despite the vehicle being insured and the driver obtaining permission to drive the vehicle. 

Despite requirements for insurance companies to disclose the policy’s restrictions, many policyholders don’t understand or know the limitations of their so-called “coverage.” HB 915 seeks to block insurance companies from writing these Phantom Policies that fail to cover household members when they need it most. This important legislation allows the policyholder to exclude the drivers they don’t want to cover, leading to increased transparency and safer roads.

Injured third parties are too often hung out to dry by Phantom Policies, which leave Texans in the lurch with expensive repairs or medical bills. Proposed legislation, HB 915, would rid our roads of dangerous Phantom Policies and remove road blocks to a #SafeTexas.

Help us eliminate dangerous phantom policies from our roads by signing the petition

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