Legal Question in Insurance Law in Texas

Re: Auto Insurance Coverage forTotalled Vehicles

Unfortunately in Texas, an insurance company only has to pay the fair market value of the vehicle or the cost of repairs, whichever is less. In neither case does it have to pay the loan balance or "pay-off" (the so-called "gap"). This, in my opinion, is a serious flaw in Texas law that allows insurance companies off the hook and leaves the innocent victim of an accident holding the bag for sometimes hundreds or thousands of dollars for an accident that wasn't their fault. This is just one more instance of how the Texas legislature is more interested in appeasing insurance companies' interests than it is in protecting its citizens. Perhaps we need to clean out the statehouse in the next elections and vote for candidates who have not sold out to big business.