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Texas Department of Insurance
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Consumer rights for commercial auto insurance

You = policyholder

If you file a claim with your insurance company:

  • Within 15 days after you file a claim with your insurance company, they must send a notice telling you:
    • They got your claim.
    • They are looking into (investigating) the claim.

      and

    • If they need more information from you and others.
  • Your insurance company must send you a written notice saying a claim you filed is approved or denied, or that they need more time. The notice must be sent no later than 15 business days after the company gets all needed information.
    • If the claim is denied: The notice must give the reasons for the denial.
    • If the claim is approved: Your insurance company must send payment no later than 5 days after the notice is sent. If the company misses the payment deadline, they might also owe you interest and attorney’s fees.
    • If the company thinks the claim might be due to a fire set on purpose (arson): Your insurance company has 30 days to send the notice.
    • If the company needs more time: Your insurance company can extend the deadline 45 more days to give their decision to approve or deny your claim. To do this, the notice must say why more time is needed.
  • If the claim is due to a disaster, the Texas Department of Insurance can extend all claim handling deadlines by 15 days.

Texas Insurance Code: 542.055542.056, 542.057, 542.058

If you are injured in an auto accident:

Your insurance company must cover losses due to auto accidents. This coverage is known as “personal injury protection coverage.”

  • You can cancel this coverage by telling your insurance company in writing that you don’t want to buy this coverage.
  • This coverage includes payments for reasonable costs that are:
    • Due to an auto accident.
    • Incurred within three years after the date of the accident.
    • Within your policy limit for personal injury protection. (Most policies have a limit of $2,500.)

      and

    • For needed services and funeral costs. Services can include things such as surgeries, X-rays, dental services, ambulances, hospital stays, prosthetics, and professional nursing services.
  • This coverage includes benefit payments no matter who caused the accident.
    • If an injured person can’t work due to the accident, this coverage pays for lost wages. Your insurance company might ask for proof of income.
    • If an injured person needs help with taking care of people or tasks in their home, this coverage will pay costs for services that are:
      • Normally done by the injured person.
      • Needed (essential).
      • Within your policy limits for these benefits.
    • If an injured person gets other medical, hospital, or wage benefits, this coverage still must pay benefits included in the policy.
  • If your insurance company approves your claim, they must send payments within 30 days of getting all needed information. If the company misses the payment deadline, they might also owe you interest and attorney’s fees.
  • Your losses or benefits won’t be covered if:
    • The accident was caused on purpose by someone covered by the policy.
    • The accident was caused while committing a felony or running from the police.

      or

    • You didn’t file the claim on time.
  • If the accident is the fault of the other driver, you might be able to get payments from that person’s insurance company. If the other driver doesn’t have insurance, see the next section, “If you are in an accident that isn’t your fault and the other driver doesn’t have insurance.”

Texas Insurance Code: 1952.151, 1952.152, 1952.155, 1952.156, 1952.158

If you are in an accident that isn’t your fault and the other driver doesn’t have insurance:

Your insurance company must cover losses due to auto accidents that aren’t the fault of someone on your policy. This coverage is known as “uninsured / underinsured motorist coverage.”

  • You can cancel this coverage by telling your insurance company in writing that you don’t want to buy this coverage.
  • Your insurance policy will cover damages if a person on your policy was not at fault in the accident and the person at fault:
    • Doesn’t have insurance.
    • Doesn’t have enough insurance.

      or

    • Is a hit-and-run driver who can’t be identified.
  • Damages covered can include bodily injury, sickness, disease, death, and property damage.
  • There must be physical contact with the uninsured auto for this coverage to apply.
  • If you need to pay a deductible to get the auto or other property repaired:
    • You can choose to pay either:
      • The deductible for your collision coverage.

        or

      • The $250 deductible for “uninsured / underinsured motorist coverage.”
    • Your insurance company might be able to get that money (the deductible) back from the other driver. The insurance company has one year from the date the claim was paid to get the money. If the insurance company doesn’t get the money back, they can:
      • Pay the deductible amount.

        or

      • Send a written notice that says they didn’t get the money and you can take legal action to get the money. This notice must be sent by whichever date comes first:
        • One year from the date the claim was paid.

          or

        • 90 days before the deadline for you to file a lawsuit against the other driver.
  • If your insurance company denies a claim because they say the other person had insurance, your insurance company must prove that person was insured.
  • Your insurance company will not cover losses if damages were caused on purpose by someone on your policy.

Texas Insurance Code: 1952.101 - 1952.104

If you want to cancel your policy:

  • You have the right to cancel your policy at any time.
  • Your policy will tell you how the insurance company will figure out (calculate) the premium amount that will be refunded back to you.

If your insurance company wants to cancel your policy:

  • If your insurance company wants to cancel your policy, they must send you a written notice with the reasons they are canceling. The notice must be sent at least 10 days before the date the policy is canceled.
  • If your policy has been active for 60 days or less, your insurance company can cancel your policy for any reason.
  • If your policy has been active for 61 or more days, your insurance company can cancel your policy for only the following reasons:
    • You purposefully gave them wrong information to get coverage.
    • You didn’t pay your premiums on time.
    • A hazard within your control increases their risk to cover you and would cause your premiums to go up.
    • Your insurance company lost all or part of its company insurance (reinsurance).

      or

    • Your insurance company is having financial troubles and is placed in supervision, conservatorship, or receivership.
  • If your insurance company cancels your policy, they must refund any unused premiums. Your policy will tell you how the insurance company will figure out (calculate) the premium amount that will be refunded back to you.
  • Your insurance company can’t cancel a liability insurance policy:
    • If it has been renewed or continued.

      or

    • If it is 61 days from when the policy started, and it is the first policy period.

 Texas Insurance Code: 551.002, 551.052 – 551.054, 551.104

If your insurance company does not want to renew your policy:

If your insurance company doesn’t want to renew your policy, they must send you a written notice.

  • The notice must tell you the reasons they don’t want to renew your policy.
  • The notice must be sent at least 60 days before the date the policy ends, unless your business is a condominium association.
  • If your business is a condominium association, the notice must be sent at least 30 days before the date the policy ends to:
    • The person named on the policy.

      and

    • Each unit owner who was given proof of insurance (certificate).
  • If the company doesn’t send you a written notice by a deadline listed above, the policy will be active for 61 days after the notice is mailed or delivered. You still must pay the premiums.

If your insurance company pays a claim to another person or party:

  • Your insurance company must:
    • Pay claims you are legally responsible for.
    • Defend you in court, if needed.
  • The company must send you a written notice:
    • If they offer to settle a claim against you. The notice must be sent no later than 10 days after the first offer is made.
    • If they settle a claim against you. The notice must be sent no later than 30 days after the claim is settled.

Texas Insurance Code: 542.153

If you have a problem with an insurance company:

  • If you have a problem with a claim filed with an insurance company, call them first.
  • If you can’t work out the issue, the Texas Department of Insurance may be able to help.

Texas Insurance Code: 521.005

Questions? Call us at 800-252-3439.

Last updated: 1/12/2022