When wrecks happen, Texans rely on insurance to help them get back on their feet. Texas law requires drivers to carry insurance to protect those they may harm. It’s called financial responsibility. But with 1.5 million vehicles driving with “phantom coverage,” Texas families are too often finding themselves unprotected and hung out to dry by insurers selling junk policies.
HB 259 by Rep. Ed Thompson would solve this problem by making sure everyone knows who is and isn't covered on their auto policy.
These Phantom Policies currently on our roads -- also called “Named Driver Policies” -- create huge holes in coverage by broadly excluding household members, who are the people most likely to drive the vehicle. They operate in exactly the opposite way from most insurance policies.
Despite requirements for insurance companies to disclose the policy’s restrictions, many policyholders don’t understand or know the limitations of this so-called “coverage.” Too many Texans fall through the trap door, proven by the fact that these policies are twice as likely to result in claims that are closed without payment.
Dangerous "named driver" policies are putting all Texans at risk. Drivers and passengers injured by these uncovered motorists have little means of recourse and can be left to pay for the damage themselves. If you are hit by someone with this policy, you may very well end up holding the bag. That isn't right.
Tell Texas lawmakers to eliminate dangerous Phantom Policies from our roads!