Reader’s Question:

I have a question about non owners policy. If the driver has a non-owners insurance policy and was at fault in an accident, which insurance coverage is considered primary for third party damage or liability?

Dallas, TX

According to the Texas Insurance Commissioner’s information sheet on the pros and cons of this non-owners insurance states that named non-owner policy is always in excess of the liability coverage purchased by the owner of the vehicle being driven. Therefore if you got involved in an accident, the car owner’s liability insurance pays first, up to the limits of the car owner’s policy. The non-owner policy comes into picture only if the cost of property damage and/or injuries goes over the limits of the car owner’s liability policy.

This may vary in other States but generally in Dallas the owner of the car’s insurance is primary and the driver’s insurance, non-owners or other type of insurance policy, is secondary or excess regarding third party liability or damage.

Tags: auto insurance, automobile, non owners insurance

Reader’s Question:

How long do you have to pay the surcharge in the state of Texas? Can you explain what the surcharge please.

Roy

Dallas, TX

Under the Points System Surcharge, points are evaluated to moving violations classified by Texas as class C misdemeanors. The TX Department of Public Safety will evaluate a surcharge when the motorist accumulates a total of six points or more on their driving record in a three year period. The motorist must pay a $100 surcharge for the first six points and $25 for each additional point.

The TX Department of Public Safety will do an annual assessment on the anniversary date of the original surcharge notice. This includes reviewing the driver’s record and determining if the motorist still meets surcharge requirement factor. If the record reflects the motorist had six or more points in the previous thirty six months, then the motorist must pay the surcharge again.

Tags: auto insurance