Storm Season & Insurance: What Dealers Need to Know

• By: TIADA Compliance
• On: 09/16/2025 21:03:11
• In: Texas Posts
• Comments: 0

Every storm season brings more than heavy rain -- it brings serious risk for Texas dealerships. From hail damage, to flooding and wind, the financial impact can be devasting if your coverage isn't up to date. Now is the time to review your insurance, confirm liability protections, and prepare your lot before the next storm rolls in.

This year, dealers also face new compliance realities. Several laws passed during the 89th Texas Legislative Session and took effect on Sept. 1., 2025, including requirements on metal plates, title processing, and consumer protections. While new insurance laws give consumers more protections, they also create challenges that Texas dealers need to be ready for:

1. Unpredictable Premiums for Dealers

Even with talk of stricter oversight (like SB 1643), Texas still uses a “file-and-use” system. Insurers can raise rates before full review. That means your commercial auto, garage liability, or fleet coverage could jump suddenly, making it harder to budget or plan.

2. More Paperwork, More Questions

Laws like HB 2067 require insurers to provide written explanations for cancellations or non-renewals. While that helps customers, it also means dealers may face more customer questions and paperwork requests when helping with financing or insurance verification.

3. Bundling Ban = Customer Confusion

SB 213 bans forced home-auto bundling. Good for choice, but customers who were used to bundle discounts may now see higher prices or be confused by changes. Dealers who recommend insurers need to update talking points to avoid being caught in the middle.

4. Higher Costs Hidden Elsewhere

Insurers may respond to new rules by tightening eligibility, raising deductibles, or charging more for certain policies. Dealers could see commercial premiums rise or find some coverages harder to obtain.

5. Reputation Risk if Staff Aren’t Ready

Customers will look to dealers for guidance. If your sales or F&I staff aren’t trained on these changes, you risk losing trust—or worse, giving bad information that comes back to haunt your dealership.

Dealer Action Steps

• Review your own business auto, garage liability, and property policies for potential cost impacts.
• Train sales & finance staff to explain bundling changes and cancellation notices clearly.
• Update any insurer referral lists to make sure they comply with the new rules.
• Stay ahead of customer questions by sharing official resources.

 

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TIADA Advocates for Dealers in TxDMV Rulemaking Process

• By: TIADA Compliance
• On: 09/02/2025 15:04:16
• In: Federal / National Posts
• Comments: 0

The Texas Independent Automobile Dealers Association (TIADA) recently submitted formal comments to TxDMV on seven proposed rule changes published in the July 25 Texas Register. Our recommendations emphasize clarity, fairness, and the reduction of unnecessary burdens for independent dealers.

 

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