Forget Universal Health Care — Texas Looking at State Run Auto Insurance

Universal healthcare advocates have nothing on State Sen. Roland Gutierrez. He’s taken the premise a step farther and introduced a bill in the Texas Senate to establish a state run auto insurance option.

The senator wants to alleviate the pain of auto insurance growing more unaffordable in the Lone Star State.

If the bill passes, Texas will set up a department to sell Liability, and comprehensive coverages to those who supposedly can’t afford the high rates being offered by auto insurance companies.

It will be administered by the Texas Department of Insurance, the Texas comptroller and the Texas Transportation Commission. Funding will come from premiums and state funding. Some grants will be infused into the mix to start and maintain the reserve fund.

"The bill aims to ensure affordability, accessibility, and competition in the auto insurance market while maintaining financial stability and consumer protections," the text of the legislation said.

There will be a sliding scale for a premium structure, and risk-based adjustments will be made to make sure pricing is “fair.”

Things are fairly tough in Texas for some insurers. Texas Attorney General Ken Paxton has initiated legal action against several carriers. They’re accused of collecting illegal fees and premiums, and selling personal data of more than 45 million drivers.

Here is a list of the market leaders in Texas:

1. Progressive — 18.3% market share
2. State Farm — 17.49% market share
3. Allstate — 10.66% market share
4. Berkshire Hathaway — 9.69% market share
5. USAA Group — 8.81% market share

Source link: Insurance Business America — https://bit.ly/4hTCdh5