There are over 231 million licensed drivers in the United States and out of those 231 million, 32 million drivers are uninsured. Uninsured drivers not only create problems for themselves but also for drivers who are insured. Uninsured drivers cost the insured drivers billions of dollars every year. With so many accidents happening every year, there are bound to be some drivers that aren’t insured. So what happens in an accident with an uninsured driver?

Understanding the Insurance Policies for Uninsured Drivers in Texas

Permissive Use

Permissive Use Car Insurance is a comprehensive insurance product that provides coverage for third parties in case of accidents, damage or injury. Permissive use car insurance covers only the policyholder, designated drivers and additional drivers mentioned in the policy. In order for a driver to qualify as a ‘designated’ or ‘additional’ driver they must appear on the insurance policy schedule with full details of their driving license number and date of birth. If any of this information is incomplete or missing from the schedule, no cover will apply for that particular driver. Permissive Use car insurance can be divided into two sections: compulsory excess and voluntary excess. When claiming compensation under permissive use, it’s important you understand how each type of excess is applied. In most cases, your claim will involve both compulsory and voluntary excess.

Excluded Driver

This is one of the only car insurance policy where the basis is the person driving the car. You can exclude certain people from your car insurance. This can lower your premiums and can help you save money in the long run. Both the policy owner and the insurance company can exclude people from the policy. For example a person with a criminal record or precious history of DUI may be excluded by the insurance company and a family may choose to exclude one of the family members from the policy. Your insurance company may still help you out financially if an excluded driver wrecks your car in an accident. However you will then have to pay relatively higher premium rates.

Underinsured Driver

If you are looking to get car insurance coverage in Texas then you have to fulfil the following criteria. You have to get coverage of $30,000 per person, $60,000 per accident/incident and $25,000 in property damage as a result of the accident.

Can You Let Someone Else Drive Your Car?

There are a few things to consider in this aspect. Firstly if you want someone else to drive your car then you should have that person already on your car insurance policy and he/she shouldn’t be an excluded driver. Now you must be wondering, what if the person who is borrowing your car does not have a license. Well, if such a person gets into an accident then they can still file for personal injury claims however they will not be provided coverage in the car insurance. In fact the car insurance company would try its best to reject the claim based on the fact that you did not have a valid license. In such a case where the insurance company rejects your claim when you have been clearly injured and you have been paying your insurance premiums on time, you should lawyer up and get your rightful claim to the insurance money. A lawyer can actually help you get the right amount of claim for the damages caused. If you have any more questions, please feel free to contact us or call 915.852.0500.

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