What To Do If Insurance Coverage For Your Client’s Case Is Denied Under A Named Driver Policy


Texas now allows what is known as a Named Driver policy, or Named Insured automobile liability insurance policy. If properly issued and properly renewed, the Named Driver policy specifically excludes members of the insured’s household from liability insurance coverage unless they are specifically named on the insurance policy.

Named Driver Policies have been characterized as “junk policies” by consumer advocate groups like Texas Watch, because the policies deny insurance coverage to members of the insured’s household, denying coverage when a son, daughter, or others residing in the home drive the insured’s vehicle with permission and harm others. These policies are forcing responsible innocent drivers to use their own underinsured/uninsured insurance policies to cover damages that should be covered by an insured’s liability policy.

Responsible insurance carriers realize that these policies hurt their insured’s and hurt their bottom line; however, several insurance companies that generally issue minimum limits liability policies and who do not have significant exposure in the underinsured/uninsured marketplace have been aggressively marketing these policies to those who typically are not likely to understand them.

As a result, car accidents occurring in less affluent areas of Texas are often now being denied insurance coverage when the third party causing the accident has proof of insurance on the vehicle being driven.

Fighting Named Driver Policy Claim Denials

At McCraw Law Group, we have developed a step-by-step plan to evaluate the insurance company’s claims that a Named Driver Insurance Policy is in effect and to prosecute valid injury claims to maximum effect when those claims prove to be wrong. Insurance companies who issue these policies and who do not follow the rules for issuing these policies revert to having traditional required coverage of every member of the household and anyone driving the insured’s vehicle.

Very often, when coverage is denied and the injuries are significant, damages available for the injury and for the wrongful denial of coverage can be substantial under both the Insurance Code and Texas Deceptive Trade Practice Act.

If you have investigated a personal injury case and have had the carrier deny coverage based on the defendant not being a named insured on this specialized policy, we may be able to help your client. Of course, if we accept a case from a licensed attorney, we can and will pay a referral fee consistent with the Texas State Bar rules and the appropriate rules in the jurisdiction where you are licensed.

If an insurance company has denied coverage under an insurance policy based on a Named Driver exclusion in Texas, McCraw Law Group can make sure that the coverage was denied properly, and that you, as their lawyer have fully explored all potential sources of funds that may provide coverage for the client’s injuries.