State Sen. Roland Gutierrez (D-San Antonio) proposed Senate Bill 1246, a bill aimed at reducing insurance premiums with coverage administered by the Texas Department of Insurance.
Gutierrez said the coverage offered under the "Auto Insurance Public Option Act" would meet the state's minimum requirements for insurance coverage, including uninsured and personal injury protection.
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WATCH HEREAccording to the proposal, all Texas residents would be eligible, and the plans would operate alongside private insurers to foster competition.
Gutierrez said with auto premiums increasing by nearly 25% over the last two years, families are having a harder time paying for everyday essentials.
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SIGN UP "The skyrocketing costs of groceries, health care, home and auto insurance have stretched Texans’ pocketbooks thin," he said. "It’s time that the state of Texas steps in and offers a public insurance option that will provide affordable, reliable coverage for everyone at a fraction of the cost."
If passed, the state would start offering public auto insurance plans one year after enactment.
“The State of Texas can provide auto insurance at a lower rate because we aren’t getting squeezed by shareholders, paying a CEO with an inflated salary, or racking up the bill on some huge marketing campaign. This is coverage that you can count on, that will force insurance giants to bring their prices down or justify the cost,” said Gutierrez.
As of Feb. 19, no action has been taken since the bill was filed on Feb. 12.
