Gutierrez announces Bill to slash skyrocketing Auto Insurance Premiums

Press release from Texas State Senator Roland Gutierrez

02-13-25

AUSTIN – Today State Senator Roland Gutierrez introduced SB 1246, the Auto Insurance Public Option Act, a game-changing insurance bill that aims to reduce auto insurance premiums in Texas by up to 50% or more.

“It’s getting harder and harder for everyday working families to get by. The skyrocketing costs of groceries, health care, home and auto insurance have stretched Texans’ pocketbooks thin. 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,” said bill author State Senator Roland Gutierrez.

Key Facts:

Administered by the Texas Department of Insurance.
Coverage level will meet or exceed Texas minimum liability requirements and offer additional coverage options, including uninsured/underinsured motorist coverage and personal injury protection.
All Texas residents are eligible, provided they meet residency and vehicle registration requirements.
Will operate alongside private insurers to foster competition, stabilize rates, and provide consumer choice.
Will start offering auto insurance plans one year after enactment.

Insurance premiums for automobiles have increased up to 25.5% over the last two years alone, a trend that shows no sign of stopping. Gutierrez says that Texas can offer competitive coverage rates that will bring down insurance costs across the board.

“The State of Texas can provide auto insurance at a lower rate because we aren’t getting squeezed by shareholders, paying a C.E.O. 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 Roland Gutierrez.

Senator Gutierrez’s Auto Insurance Public Option Act can be found here.

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Roland Gutierrez has served as the Texas State Senator for District 19 since 2021, previously serving six terms as a member of the Texas House of Representatives and two terms as a San Antonio City Councilman.

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