Texas Attorney General Greg Abbott sent a demand letter instructing Travelers Insurance (The Travelers Companies Inc.) to cease and desist the airing of a deceptive television advertisement. According to the attorney general’s letter, the ad improperly indicates that Texas homeowners should purchase additional motor vehicle insurance or risk losing their homes if they have inadequate insurance after a vehicle accident. The attorney general demands that the advertisement be removed from all Texas television media markets as well as any print, multimedia, radio or computer-generated ads that appear in the state.

“Texans are protected by robust homestead laws that insulate homeowners from the losses depicted in Travelers’ advertisements,” Attorney General Abbott said. “Because the state already protects homeowners, it is improper for Travelers to scare Texans into buying insurance they may not need. The letter we sent today instructs Travelers to pull down this misleading advertisement immediately or face legal action by the state.”

A Travelers ad airing across Texas entitled “Driving Your House” depicts a man driving his “home” through a desert environment when suddenly he has an accident and the home and contents are severely damaged. The narrator strongly suggests that without additional vehicle insurance, a driver’s home could be at risk from uncovered liability after a car crash.

Travelers could be liable for civil penalties under the Texas Deceptive Trade Practices Act of up to $20,000 based on each airing of this ad. The attorney general may also inquire of homeowners who purchased additional and unnecessary insurance because they were influenced by the ad.

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