Auto insurers must include a covered-vehicle provision in personal auto policies, and insureds must notify the insurer when a replacement vehicle is involved if they want certain damage coverage to continue or be added.
Sec. 1952.059. REQUIRED PROVISION: COVERAGE FOR CERTAIN VEHICLES ACQUIRED DURING POLICY TERM. (a) This section applies to an insurer authorized to write automobile insurance in this state, including an insurance company, reciprocal or interinsurance exchange, mutual insurance company, capital stock company, county mutual insurance company, Lloyd's plan, or other entity. (b) A personal automobile insurance policy must contain a provision defining a covered vehicle in accordance with this section for a motor vehicle acquired by the insured during the policy term. (c) Coverage under this section is required only for a vehicle that is: (1) a private passenger automobile; or (2) a pickup, utility vehicle, or van with a gross vehicle weight of 25,000 pounds or less that is not used for the delivery or transportation of goods, materials, or supplies, other than samples, unless: (A) the delivery of the goods, materials, or supplies is not the primary use for which the vehicle is employed; or (B) the vehicle is used for farming or ranching. (d) Coverage under this section is required only for a vehicle that is acquired during the policy term and of which the insurer is notified on or before: (1) the 20th day after the date on which the insured becomes the owner of the vehicle; or (2) a later date specified by the policy. (e) Coverage under this section for a vehicle that replaces a covered vehicle shown in the declarations for the policy must be the same as the coverage for the vehicle being replaced. An insured must notify the insurer of a replacement vehicle during the time prescribed by Subsection (d) only if the insured wishes to: (1) add coverage for damage to the vehicle; or (2) continue existing coverage for damage to the vehicle after the period prescribed by Subsection (d) expires. (f) Coverage under this section for a vehicle that is acquired during the policy term in addition to the covered vehicles shown in the declarations for the policy and of which the insurer is notified as prescribed by Subsection (d) must be the broadest coverage provided under the policy for any covered vehicle shown in the declarations. Added by Acts 2013, 83rd Leg., R.S., Ch. 282 (H.B. 949), Sec. 2, eff. September 1, 2013.