Subscribe to receive our Floor Reports covering all the action on the Texas House and Senate floor!
Relating to liability coverage for certain vehicles provided by certain automobile repair facilities.
No significant fiscal implication to the State is anticipated.
Currently, temporary vehicles (courtesy or loaner vehicles provided by motor vehicle dealers when a customer's own vehicle is in the dealership for service or repair) are not always covered by insurance companies because the individual's and dealer's insurance are both considered excess coverage. HB 3420 would require a personal automobile insurance policy to define temporary vehicle as defined by this bill, and include in the policy's coverage primary liability coverage for a qualifying temporary vehicle as a covered vehicle during the policy term that provides primary coverage for the insured's legal liability for bodily injury and property damage, and for damage to the temporary vehicle (not excess coverage).
This bill would also require the coverage to insure the person named in the personal automobile insurance policy and any resident relative of the insured and licensed operator residing in the household, except for an individual not covered in a named driver policy.
Texas Action opposes HB 3420 because it infringes on principles of limited government and free markets. This bill would impose an insurance mandate on automobile insurers, rather than allow private insurance companies to make those coverage decisions for themselves. Dealers are not required to provide temporary vehicles to customers, and insurance companies would inevitably raise the price of affordable insurance on existing customers.