Deductible Recovery

Section 542.201 of the Texas Insurance Code applies to all insurers writing auto insurance in Texas.


(1) an insurer is liable to an insured for a claim, and

(2) the claim is subject to payment of the deductible by the insured, and

(3) a third party may be liable for the deductible, then

(4) the insurer must make an effort to collect the deductible amount from the third party or advise the insured in writing that action will not be brought.

This must be done not later than 12 months after the date the claim is paid, or the insurer must pay the amount of the deductible to the insured.

This article applies whether the third party who may be liable is insured or uninsured.