Bill proposes to lower the cost of insurance for Texas drivers

MCALLEN, Texas (ValleyCentral) — A state lawmaker is working to lower the cost of auto insurance for Texas drivers.

Senate Bill 1246, filed by Texas State Senator Roland Gutierrez, would create a state-run insurance option that all Texans would be eligible for.

People are divided on the issue; however, they all agree that auto insurance rates are too expensive nowadays.

“It's pretty crazy high, it's kind of ridiculous finding a good quote," said McAllen resident Justin Galvan.

Galvan said he pays more than $140 per month on auto insurance and that's just for liability. Others said their premiums continue to rise every year.

“I just renewed it and it is about $1,300 per year," said Marsha Monkiewicz, from Pharr. “It went up about $100.”

Drivers like Galvan said they favor a bill that would lower these costs.

“I would be all for that as it would make things a lot easier; especially, for the other drivers that I have in my plan," Galvan said.

The Texas Automobile Insurance Public Option Act would provide a way for motorists to get liability insurance at a lower rate covered by the Texas Department of Insurance.

Local insurance agents like Alvaro Iglesias, owner of Iglesias Insurance, said the bill has its pros and cons.

“It can be a double-edged sword," Iglesias said. "Of course, it's always good having options out there, giving options to the clients.”

Iglesias said it can impact businesses like his as the bill plans to operate alongside private insurers to foster competition. However, he said his company would benefit if private brokers like him could also sell it.

“I mean, if we already have the agents doing the work people that are licensed, it would be nice to just incorporate it into what we have and help the consumers out there," Iglesias said.

John F. Gonzalez, who owns Paragon Independent Insurance Agencies Inc. in Raymondville, does believe the bill would allow them to sell the state option as well, so consumers know that option exists.

He agrees that something must be done about rising insurance premiums as prices continue to increase.

“Prices have gone up so much over the last three to four years that it is hampering a lot of people from being able to afford, you know, full coverage," Gonzales said. "You know, some people their car is not financed. They're just getting the base of what the state mandates to get, which is auto liability.”

The bill was filed on Feb. 12 but the Texas Senate has not begun the debate.