Changes Coming to Texas Auto Insurance in 2020: What Does It Mean for Me?

by squinn - December 18, 2019

Aerial view of a highway with a bridge and lots of cars

As of January 1, 2020, a new law will go into effect that prohibits “named” driver exclusion policies in the state of Texas. Some Texas customers will be affected by this change, so let’s dive into (or unravel) what it means to Texas residents who hold automobile insurance from Bluefire or any other insurance provider.

Named and Unnamed Drivers

When you took out an auto insurance policy in Texas, you had two options: you could cover everyone who uses your car or opt for a more restricted definition of who is covered while driving your vehicle in exchange for a lower price. Many people chose the second option to save money.

Now suppose a driver not listed on your policy operates your vehicle. In some instances, he or she could be denied coverage in the event of an accident because they were not specifically named on the policy.. And you could be held personally responsible for damages that occur.

What Should You Do?

Under the new law, insurance companies in Texas will no longer be allowed to offer policies that exclude coverage for unnamed drivers. So if you live in Texas and have auto insurance, it’s very important to check in with your agent right away. You want to be sure your policy covers everyone who uses your car, family members or not. The good news is, you will be in control of deciding who you hand the keys to.

And if I have a Bluefire policy?

You are in luck, Bluefire has not sold any policies with named driver exclusions since 2017. As you do not have a “named” driver exclusion on your policy you do not need to do anything and your premiums will not increase due to this change. It is always a good idea to check with your agent to ensure you have the right coverage for your vehicles and the people who are driving them.