Texas House Bill HB2145

Texas 2017 - 85th Regular

Caption

Relating to premium increase for a collision in which the insured is not at fault under a personal automobile insurance policy.

Impact

The implementation of HB2145 has the potential to impact not only the financial burden on consumers but also the broader insurance market. With this bill, individuals may feel more secure knowing that their insurance costs will not penalize them for incidents where they are not at fault. This could promote a more equitable approach to auto insurance policy management, allowing consumers to maintain reasonable premium rates even after accidents that were not their fault. It may also lead insurers to reassess how they evaluate risk and set prices for their policies.

Summary

House Bill 2145 addresses a significant issue within personal automobile insurance by prohibiting insurance companies from imposing a premium increase on insured individuals who are not at fault in a collision. This bill amends the Insurance Code by adding a new section that explicitly states that insurers cannot assign a rate consequence based solely on an individual's involvement in an accident where they are deemed not responsible. This legislative move aims to protect consumers from unfair premium hikes that can occur due to circumstances beyond their control, such as being in an accident caused by another party.

Contention

Despite the positive intentions behind HB2145, there may be some contention regarding its implementation and effect on insurance companies. Critics of the bill might argue that such regulations could lead to increased risk for insurers and may subsequently result in adjustments to premium rates for all policyholders. This concern arises from the fear that if insurers cannot adjust rates based on at-fault accidents, they may increase premiums overall to account for potential losses. Therefore, the bill invokes a conversation about balancing consumer protection with the sustainability and profitability of insurance providers.