A report from Terrence Stutz in The Dallas Morning News states that some legislators have proposed a change to Texas auto insurance law that could result in significant savings on auto insurance rates. Two congressional Democrats, Representative Rafael Anchia and Senator Leticia van de Putte, have introduced bills that would make the following reforms:
- Auto insurance companies would no longer be able to increase rates immediately after they inform the Texas Department of Insurance. Instead, the state’s approval would be required before any rate increase.
- The state Insurance Commissioner would be elected to the public, making him or her more accountable to Texas drivers
- Insurers would be banned from using drivers’ credit ratings to determine premiums
- Policy forms would be standardized across all insurers in the state, making it easier to compare them
Terrence says that the fate of these measures is unknown at the moment.