Expert: Richard Hixenbaugh - 8/17/2009

Question
I live in Texas and I read on your site that states Texas is one of a few states where 3rd party insurance are required to protect lienholder for large property damage settlement. Can you tell me what is large and also where can I find that information on the TDI website. I have a claim for $1400 and request the insurance company make the check out to me but she states that she can only make it out to the body shop or lienholder is that true? Thank You

Answer
Hi Rena,

It has nothing to do with the size of the claim. Texas law requires insurance companies to protect the interests of lienholders. Any claim payable that has a lienholder must be paid to the vehicle owner and the lienholder. In some cases they may be able to make the check payable to the vehicle owner and a body shop that has completed the repairs.

I do not know where on the DOI website (if at all) this infomation can be found. You might try calling the DOI directly.

I hope this helps
Richard Hixenbaugh