Road trips are a great way to explore different parts of the country. If you are driving your own vehicle, it is important to understand how your auto insurance works across state lines. Some states have what are known as deemer statutes. These laws can require your auto insurance policy to meet that state’s minimum coverage requirements if your existing policy does not already exceed them. City Centre Insurance Agency LLC wants drivers in Houston, TX, to understand how deemer statutes may affect them when traveling.
How Deemer Statutes Can Affect Your Coverage
Texas is not a deemer state, which means drivers entering Texas must already carry auto insurance that meets Texas minimum coverage requirements. However, for Texas drivers traveling through a deemer state such as Georgia or New Jersey, the rules can be different. If a driver is insured by a company that also does business in the deemer state, their policy may automatically adjust to meet that state’s minimum coverage limits if the original policy falls short.
This automatic adjustment can be helpful because it reduces uncertainty about whether your coverage meets local legal requirements. However, Texas drivers should be aware of important limitations. The automatic increase in coverage may not apply if the insurance company does not operate in the deemer state. In that situation, a driver could face complications if an accident occurs.
Another consideration is that some deemer states also impose restrictions on lawsuits related to injuries. For example, New Jersey applies limitations on injury claims to out-of-state drivers who are subject to its deemer laws. This could affect a driver’s ability to pursue compensation after an accident.
Texans planning to drive their own vehicles through other states should speak with their insurance agents before traveling. Reviewing your policy can help ensure that deemer statutes will not create coverage gaps or legal confusion. City Centre Insurance Agency LLC in Houston, TX, can help drivers build an auto insurance policy designed to provide protection wherever the road leads.
