Auto Insurance Claims: Cancelled Policy, true market value, texas department of insurance

Question
Hi, I recently read that the insurance company is required to notify the lein holder of a cancelled policy within 30 days and  they are still legally liable to the leinholder for the true market value of your vehicle if it is stolen, burned, totaled or repossessed during the 30 days following the date of their canceling your policy. Is there any truth to that here in the State of Texas?


Answer
Hi Kim,

Unfortunately I am not specifically aware of specific Texas law. You may try to contact the Texas Department of Insurance who should be able to answer your question. It may also depend on the exact wording of your particular policy. So you may need to have a copy of the entire policy to send to the Texas DOI for verification.

I hope this helps
Richard Hixenbaugh