auto insurance news and changes in 2020 texas alisnco
December 30, 2019

News and changes for auto insurance in Texas in 2020

By Diana Flores

Auto Insurance industry in Texas has news for insured drivers starting January 1, 2020.

The first and the most important is the named driver insurance policies and exclusions. 

Let’s catch up with the change because it could impact your premium and the way your named drivers are being covered. 

How named driver’s law used to work?

Let’s go back in time a little bit.

Auto insurance laws in Texas used to cover people whose names were written on the policy by the policy owner. 

For example: I have auto insurance and I listed all the names (persons) that will be covered if they drive my car. If I’m a mom I may write my son’s name. So, if one of them has an accident while driving my vehicle depending on coverage, my insurance would cover them. 

That’s why it was so important to only lend your car to your named drivers or other insured drivers. 

Named driver policy is “an automobile insurance policy that does not provide coverage for an individual residing in a named insured’s household specifically unless the individual is named on the policy. The term includes an automobile insurance policy that has been endorsed to provide coverage only for drivers specifically named on the policy.

See Texas Insurance Code §1952.0545 and 28 Texas Administrative Code §5.208.
Texas Department of Insurance.

How named driver will work in 2020?

From January 1st, 2020 Texas Legislature will prohibit auto insurers to extend coverage into “named driver” policies, which means that you can’t renew with the same coverages.

Instead, in 2020 every person living in a household will be covered by your auto insurance if they drive your car. Regardless of family bonds, so they could be your wife, son, girlfriend, boyfriend or even your roomie.

You can live in-home, mobile home, duplex unit, apartment, condominium or multi-unit residential and your policy might cover you and people who live with you.

As you can notice it is s exactly the opposite of the last-named driver policy.

What if I need to exclude people from my car insurance?

This is called “Named driver exclusion” means you can exclude drivers living in a household from your policy.

Be sure to notify each driver’s name you want to exclude. In addition, the excluded driver has to be informed and accept the exclusion in writing.


If you renew your policy before Dec. 31, 2019, the coverages stay the same. anything that renews in 2020 will be affected.  

Talk to your auto insurance agent

For the best guidance, speak with your insurance agent, He or she will know how the laws affect your policy. It’s important to be informed about how your coverage will work in 2020 before being surprised. Check for more info by  clicking here

Now, you’re all caught up with Texas auto insurance news. If you’re planning to renew or get your policy by the first, keep this law update in mind.