The Dallas Morning News recently wrote an article about 'junk' auto insurance policies that cover just one driver, not an entire vehicle. There is a huge gap in coverage in liability insurance policies still being written by some automobile liability insurance companies in Texas. Gov. Rick Perry recently signed a law that allows insurers to continue selling "named driver" automobile policies.
The only difference now is that the insurance companies are required to:
- Disclose the limits of coverage to the drivers &
- List the names of the covered drivers on the insurance ID card that is carried in car or truck as proof of insurance.
These "named driver" insurance policies will probably still leave many accident victims with no recourse against unauthorized drivers for claims for property damage to their vehicle, medical expenses, lost wages or personal injury damages.
The best way to prevent this risk of being in a wreck with a vehicle covered by one of these "junk" policies, or an uninsured driver, is by purchasing uninsured/underinsured motorist coverage and personal injury protection on your own insurance policy.