Bill > SB1246

This bill establishes the Texas Automobile Insurance Public Option (Texas Public Auto Option), a state-administered auto insurance program designed to provide affordable and accessible auto insurance to all Texas drivers. The program will be managed by the Texas Department of Insurance and will offer mandatory liability coverage and optional comprehensive and collision coverage to eligible drivers who meet state residency and vehicle registration requirements. Eligible drivers can enroll during an annual enrollment period or during special enrollment periods triggered by life events like vehicle purchase or loss of private coverage. The insurance option will provide coverage meeting or exceeding state minimum liability requirements and will offer additional coverage options such as uninsured motorist protection. Premiums will be set using actuarial principles with a sliding scale for low-income policyholders, and the program will be funded through policyholder premiums and supplemental state grants. The bill mandates consumer protections, including transparent claims handling and fraud prevention programs, and requires a biennial study to assess the program's impact on the auto insurance market. The Texas Department of Insurance will have rulemaking authority to implement the program, which is set to take effect on September 1, 2025, with policies applicable from January 1, 2026, onwards.

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https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB1246