Texas would offer a public auto insurance plan as an alternative to private policies
What it does
SB 326 would create a Texas automobile insurance public option run by the Texas Department of Insurance. The department would offer policies with the minimum liability coverage Texas requires, plus options such as uninsured or underinsured motorist coverage and personal injury coverage. It would set premiums using actuarial standards, with a sliding scale for low-income policyholders, and the money would sit in a reserve fund outside the state treasury with the comptroller.
What it means for your community
Drivers who must show financial responsibility to drive could buy a policy from a state-run program, giving households another option when they shop for coverage. Whether the public plan would cost more or less than private coverage would depend on the rates the department sets, and the bill calls for a study every two years on premiums, consumer satisfaction, and the number of uninsured motorists. The plan would carry its own rules, including transparent claims handling and an independent appeals process for disputed claims.
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