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Texas bans named driver auto policies in 2020

Texas license plate

Ensure coverage is up to speed when House Bill 259 goes into effect

AUSTIN, Texas – Dec. 13, 2019 – For drivers who currently drive with a named driver auto insurance policy in Texas, 2020 will be a year of change. Effective Jan. 1, 2020, the writing and renewal of named driver policies will be prohibited in the state by House Bill 259.

Prevalent in Texas and historically less expensive than a standard policy, a named driver policy provides auto coverage to those listed on the insurance policy but does not provide coverage for household members who are not listed. Therefore, the vehicle is insured only when a “named” household member or someone who lives in another residence is driving. If driven by someone who lives in the same household and not named on the policy, the car does not have coverage in an accident.

For drivers who hold a named driver policy, House Bill 259 prevents it from being renewed upon its 2020 expiration date, which can be as early as Jan. 1, 2020, depending on the driver’s policy. Those affected may receive a notice of nonrenewal via mail toward the end of the policy term and will need to seek a new policy accepted under HB 259.

“The most important thing is to ensure you’re protecting yourself and the drivers in your household,” says Jason Mills, Texas State Manager for Dairyland insurance. “If you happen to get behind on your payments before the named driver policy expires, your insurer will not be able to reinstate it in 2020. Lean on your insurance agents to help navigate these changes at the local level and recommend how to move forward with a coverage plan you’re comfortable with.”

Policy holders who are unsure when their coverage expires should contact their insurance agent or double check their insurance card. According to Texas insurance code, an insurer must give 30 days’ notice of nonrenewal to provide time to look into a new policy.

For more information on House Bill 259, please visit Dairyland’s auto blog.

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Dairyland® brand property and casualty coverages are underwritten by a member of the Sentry Insurance Group, Stevens Point, WI. For a complete listing of companies, visit In Texas, Dairyland® property and casualty coverages are underwritten by Dairyland County Mutual Insurance Company of Texas, Austin, TX. In California, Dairyland® property and casualty coverages are underwritten by Viking Insurance Company of Wisconsin, Stevens Point, WI. Policies, coverages, benefits, and discounts are not available in all states. Savings based upon all available discounts. See your policy for complete coverage details.