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.