Insurance Reform For Texas
Written by Greg on August 18, 2013
Many Texas families are shocked to learn that the insurance coverage that they have been paying for for their personal automobile does not provide coverage in many cases. Despite paying the premiums, and carrying insurance for years, many Texas consumers are learning that they have been sold a “junk” policy with a named driver exclusion.
It is only after an accident that the family finds out that there is no coverage for the vehicle because someone else was driving. The number of telephone calls we received under similar circumstances testament to the frustration and anger of Texas consumers over the junk policies sold in Texas.
Only a few years ago, if you bought automobile insurance coverage and let someone else drive your car, if they got an erect there was going to be coverage unless they were specifically “excluded” from the policy. Everyone knew what they were getting when they pay for the policy.
Unfortunately, recent changes in how the state allows insurance companies to operate within Texas have resulted in the market being inundated with “junk policies” which tend to maximize profit for the insurance companies and leaving the Texas family holding the bag.
It gets worse in that once one or two companies started writing these jump policies the other and even very reputable companies started writing the policies as well. Many attorneys didn’t even know that they had purchased a junk policy covering their automobiles.
When Texas required a standard policy, everyone knew exactly what they were getting and everyone could compare apples to apples when purchasing insurance. Allowing junk policies has polluted the marketplace and there is no mechanism where Texas families can make informed choices about their insurance purchases.
Senators proposed a bill that would have solved the problem of the “named insured” driver junk policies, but the bill could not get out of the Senate. One has to wonder whether campaign contributions from insurance companies had any impact on the inability of the bill to become law.
Texas families have long taken the backseat to insurance company interests in Texas and it is high time that changed.
Tell your state senator and representatives that you demand insurance reform for Texas.