Texas Senate Bill SB1170

Texas 2021 - 87th Regular

Caption

Relating to liability coverage under a personal automobile insurance policy for a temporary vehicle provided to an insured by an automobile repair facility.

Impact

The implementation of SB1170 is expected to enhance consumer protection by clearly defining liability provisions for those borrowing vehicles while their own are being repaired. It will alleviate uncertainties faced by insured individuals regarding their coverage in these circumstances. By ensuring that both residents and licensed operators are included under the coverage stipulations, the bill seeks to account for various scenarios where multiple individuals might operate a temporary vehicle.

Summary

Senate Bill 1170 addresses the specific issue of liability coverage under personal automobile insurance policies for temporary vehicles provided by automobile repair facilities. This legislation is designed to ensure that insured individuals have clear coverage when they receive a temporary vehicle while their own is being repaired. The bill modifies Section 1952.060 of the Texas Insurance Code to provide primary liability coverage for both bodily injury and property damage, as well as for the temporary vehicle itself. This change aims to mitigate potential gaps in coverage that could leave insured individuals liable in situations where they rely on a temporary vehicle.

Contention

While SB1170 has the potential to streamline coverage for temporary vehicles and protect consumers, discussions around the bill may highlight concerns from insurance providers regarding the financial implications of expanding coverage requirements. Opponents might argue that while consumer interests are prioritized, there could be an unintended consequence of increased premiums if insurance companies assess the expanded liability as a risk that needs to be offset. Therefore, ongoing dialogue among lawmakers, insurance providers, and consumer advocates will be crucial in addressing these concerns as the bill progresses.