How are my Aspen policies affected?

They are not! Aspen NEVER sold Named Driver policies! Your policies with Aspen are perfectly legal and will continue to renew with NO issues!

We have never utilized the Named Driver endorsements on our Standard or Limited Forms. Both Standard and Limited options will continue to be available in the future and are NOT subject to this law change.

How can Aspen help you?

Our In-Agency Transfer discount is HUGE! This discount can be used in combination with our many other discounts (Advanced Quote and EFT to name a few) to help you easily transition your clients policies to better coverage with superior customer service. Our easy and intuitive system will make the transition seamless.

How and when this law takes effect?

The 86th Texas Legislative Session passed H.B. 259 and eliminated Named Driver policies effective January 1, 2020. After this date, no new policies can be written that include specific Named Driver endorsements. In addition, all existing Named Driver policies must be non-renewed beginning January 1, 2020 – meaning that all policies containing the illegal Named Driver endorsements will begin non renewing no later than December 2, 2019 with the required 30-day notice.

Understanding how the Named Driver policy worked:

Car insurance typically operates under a principle of “permissive use.” This means that if an auto policy holder loans their car to someone and that driver has an accident, the loss would be eligible for coverage with a “permissive user”; the operator is given coverage within the policy provisions.

In Texas, a Named Driver policy included endorsements that removed undisclosed permissive use drivers from certain coverages. In other words, these types of policies would not cover certain permissive use drivers if they were undisclosed and living in the household. So, if any driver living in the household that was not listed on the Declarations Page were to have an accident, the insurer may not have an obligation to cover the damages. This meant the vehicle would not be covered by the insurer, and both policyholder and the un-listed driver could be held personally liable for any damages caused to others in the accident (regardless of permissive use).

Why was the law changed?

The State determined that policies including certain Named Driver endorsements were too ambiguous and difficult for many insureds to understand. This left opportunity for insureds to misinterpret their coverage leaving many unknowingly unprotected. In addition to the insured’s lack of protection, this ambiguity and lack of coverage could affect the un-listed driver, as well as any parties owed damages on property or injuries.