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Bills Filed in Texas Aimed at Increasing Insurance Policy Transparency

Two pieces of legislation recently filed in Texas would require insurance companies to provide customers with more complete information on rate increases and expand resources available to consumers for shopping the market.

Rep. Armando Walle of Houston says House Bill 2723 and House Bill 2724 would “help consumers fully understand the premium increases imposed by insurance companies and will give consumers information on how they can shop around.”

HB 2723 concerns accident and health insurance policies. Under the measure, an insurer must notify consumers of the rate increase 60 days prior to it taking effect, according to information posted on the Texas House of Representatives’ Web site. The notice would have to include the amount of the increase and information about how to file a complaint. Additionally, the bill would require the notice to include Web site addresses where consumers can access information regarding rate increase justifications and alternative coverage options.

HB 2724 contains similar provisions for Texas homeowners insurance, property insurance and Houston auto insurance. At the time of a policy renewal, the Texas insurance company would be required to provide a side-by-side comparison of the new and old rates, as well as provide information on any changes in coverage and how to shop around. The bill also requires insurers to give the deductible in a dollar amount, rather than in a percent of the total value of the policy.

Rep. Armando Walle is serving his second term in the Texas House of Representatives and serves on the House Committee on Insurance and the House Committee on Homeland Security and Public Safety. He represents House District 140, which includes northern portions of unincorporated Harris County and the City of Houston.

Texas Pressures Auto Insurance Policy Requirements Statewide

Texas police are taking a stand against drivers with no car insurance policy. Because having liability car insurance is required by law in the state of Texas, some cities are adopting a “no tolerance” policy.

In 2009, the state of Texas linked its vehicle registrations with Texas auto insurance policies to verify coverage in a program called TexasSure. According to the data collected by this program, more than 23% of drivers across the state are uninsured.

Efforts to combat uninsured motorists include heavy fines for those caught without Houston auto insurance coverage. For a first offense, the fine ranges from $175 to $350. The fine jumps dramatically for a second offense to as much as $1,000, and the driver’s license will be suspended. On top of these penalties, drivers without insurance must pay a surcharge of $250 each year for 3 years to maintain their driver’s license.

Fewer Auto-Insurance Claims In 2010, Yet Premiums Are Rising

Average Texas auto insurance premiums for U.S. families have fallen for five straight years through 2009, yet rates have risen slightly in some parts of the country in 2010. And that goes against a host of indicators that you think would actually be lowering rates. According to the New York Times, there's been little growth in how much we drive; unemployed drivers are using their cars less than before (likely less than they're still paying for in their premiums); and there's been a drop in the frequency of accidents. And while medical-care costs and car-repair expenses have risen, tort reform has limited the amount of accident-related legal expenses.

Auto insurance prices driven up in 2011

The start of the new year means Texas auto insurance rates for more than half of Texas drivers are going up.

A law passed back in 2007, mandates insurance companies raise their premiums.

That means starting Jan. 1, those who have minimum liability insurance will be paying 2- to 3 percent more on their premium. More than 7.5 million Texas drivers will be affected.

As you're getting ready to hit the road, keep this in mind -- according to the state of Texas auto insurance database, 22 percent of cars on Texas roads do not have insurance. A new pay-by-the mile insurance program is hoping to reverse those numbers while helping you save money...