Just about everyone who has been in a car accident knows how many problems come up afterward. There are many things that can be done to lower the risk of an accident and keep people from getting hurt. Car insurance gives drivers some financial peace of mind.
Auto insurance is particularly crucial in light of Texas’ fault-based insurance system. Under this framework, Texas requires people who drive in the state to pay for the accidents they cause.
But after an accident, people who were hurt, car owners, and people who were driving someone else’s car may wonder about insurance coverage. Does insurance follow the car or the driver in Texas?.
In Texas, car insurance usually follows the car, but there are some exceptions to the law that could change what happens if you hit someone else’s car or if someone hits yours.
Understanding how auto insurance works is crucial for all Texas drivers. A common question is whether policies follow the actual vehicle or just the named insured driver
The short answer is that in Texas, insurance follows the car This “permissive use” model means any authorized driver is covered when operating your insured vehicle
Below I’ll explain how this permissive use system functions in Texas I’ll cover
- The basics of coverage following the car.
- Scenarios such as lending your car or borrowing another’s.
- Steps to take if an unauthorized driver wrecks your car.
- When out-of-state insurance gets complicated.
- How to ensure you have proper coverage.
Gaining clarity on these insurance rules protects you from liability gaps and denied claims.
Texas: An Insurance “Permissive Use” State
Texas uses a “permissive use” model for auto insurance. This means coverage is tied to the specific vehicle, not just the policyholder.
So long as someone has permission to operate your car, they are insured under your policy. This includes:
- Spouses and family members.
- Roommates.
- Any friend or acquaintance.
The key is having express or implied permission to use the vehicle. Age, license status, driving record, etc. do not affect coverage.
Lending Your Car to Others
Let’s say you lend your insured car to a friend for a day. If they crash, your policy covers the damages and liability claims.
This is because insurance follows your car, regardless of who drives it. The owner’s coverage applies to permissive drivers.
The only exception would be if you specifically excluded that person from your policy. This is rare, but can occur such as for a high-risk driver.
In nearly all cases though, any authorized driver has coverage in your car. Your rates could rise after a claim, but the damages and injuries would be covered.
Driving Someone Else’s Car
Similar rules apply when you drive another person’s vehicle. If you have express permission to drive their car, you are covered by their insurance in the event of an accident.
For example, if you borrow your friend’s pickup truck to move furniture, their truck policy protects you when behind the wheel.
Insurance follows the vehicle, so authorized drivers gain the owner’s coverage. Make sure to ask and confirm permission to avoid issues.
What if an Unauthorized Driver Wrecks Your Car?
While permissive use sounds flexible, there are still ways for insurance to deny coverage.
The main one is if an unauthorized, non-permissive driver operates your insured vehicle. For example, say you lend your car to a friend, who then lets someone else drive it without your approval. If that person causes an accident, your insurer will likely deny the damages and injuries.
Why? Because that driver did not have permission from the owner (you), so were not an authorized user covered under your policy. Letting them drive was your friend’s decision alone.
Out-of-State Insurance Can Get Complicated
One gray area involves out-of-state insurance coverage. Say you let a visiting friend borrow your Texas-insured car. If they crash in Louisiana, your Texas policy may not fully apply.
That’s because insurance regulations can vary by state. So your coverage would only extend to another state up to the minimum liability limits required in that state.
The best protection is to confirm with your insurer that out-of-state permissive drivers have adequate coverage. Some policies offer broader coverage for permissive users.
Steps to Keep Your Insurance Valid
While car insurance follows the vehicle more than driver in Texas, you still need to take steps to keep your policy valid:
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Report all regular drivers to your insurer, even if they only use the car occasionally. Undisclosed frequent operators can risk denial of a claim.
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Inform any permissive users they must obey all policy terms. Violating provisions like DUI or texting while driving could still invalidate your coverage.
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Confirm any out-of-state driving has adequate coverage limits. Don’t just assume your policy extends fully.
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Report accidents promptly regardless of fault and cooperate fully with your insurer’s investigation.
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Consider using a dash cam to capture video evidence in case another motorist misrepresents fault.
Following these best practices ensures your permissive use coverage remains intact.
The Vehicle Owner’s Insurance Applies
This permissive use model provides broad protection for both vehicle owners and authorized drivers. But be sure to take steps to keep your policy valid and avoid denied claims.
Texas Car Insurance Requirements
Under Texas law, drivers must show proof that they can pay for accidents they cause. Further, drivers must be prepared to show proof of their insurance coverage when they are behind the wheel.
In most instances, motorists accomplish this requirement by purchasing auto liability insurance. The driver who caused the accident can use their liability insurance to pay to fix or replace the other person’s car, fix or replace damaged property, and pay for medical bills.
Coverage for Borrowed Cars
Those who cause an accident while borrowing a car may seek coverage from the car owner’s insurance policy. Your insurance will pay for the damage if the other driver doesn’t have insurance or doesn’t have enough to cover it.
If someone gets into an accident while driving a borrowed car from a repair shop, their liability insurance should cover the damage to the other person’s car and their injuries and other damages.
Does Insurance follow the Driver or the Vehicle?
FAQ
Can someone drive my car if they are not on my insurance in Texas?
Does insurance cover the car or the driver in Texas?
What happens if someone else is driving my car and gets in an accident in Texas?
Does insurance follow the car and not the person?
Do you need car insurance in Texas?
Driving in Texas requires more than just a vehicle. You will need to make sure that you are covered by insurance in order to legally drive in the state. Understanding Texas car insurance laws is essential for any driver to avoid the penalty for being caught without coverage that meets Texas car insurance requirements.
Does Texas have a bill of rights for auto insurance?
Texas has a Consumer Bill of Rights for auto insurance. Your insurance company will give you a copy of the bill of rights when you get or renew a policy. Is auto insurance required? Texas law requires drivers to show proof they can pay for the accidents they cause. Most drivers do this by buying auto liability insurance.
How much car insurance do you need in Texas?
The $25,000 of property damage liability coverage required by state law covers repairs for the other driver’s car or damaged property. Collision coverage pays to repair or replace your vehicle after an accident. How long do you have to insure a car in Texas?
Does Texas require collision insurance?
Texas doesn’t require collision insurance, but it could be smart to add this optional coverage if you’re a frequent driver or want to avoid unexpected repair costs down the road. The $25,000 of property damage liability coverage required by state law covers repairs for the other driver’s car or damaged property.