Ensure Fair Auto Insurance Pricing During and After the Pandemic (2021 Legislative Priority)
Auto insurance is required by law to own a car and drive legally in Texas. Credit scoring is often used in the pricing of auto insurance and may directly affect someone’s premium. With the broad-based economic impact of the pandemic, more protections are needed to ensure that people are not charged more for insurance simply due to financial shortfalls caused by the pandemic. Adding fair pricing provisions, that protect people from use of credit scores that go down due to economic hardship during the pandemic, will save impacted Texans hundreds of dollars per year in excess premiums. Pricing should be fair and based on personal driving risk and taking into consideration less driving. Texans should not be required to pay more for auto insurance simply due to economic changes caused by the pandemic.
Fair Financial Services & the 87th Legislative Session
Texas Appleseed has four 2021 legislative policy initiatives as part of our Fair Financial Services Project; they include advocacy surrounding Debt Collection, Coerced Debt, Payday & Auto Title Lending, and Auto Insurance Pricing. All priorities can be found on our legislative page. These priorities focus on policies that enhance the ability of Texas families to recover and rebuild from the economic harms of the pandemic. The U.S. Census and other survey data show that 40 to 50% of Texans continue to experience increased economic hardship due to the pandemic.
Before the pandemic hit, when unemployment was low, Texans were already experiencing record indebtedness, record debt collection lawsuit filings, and high fees and auto repossessions related to payday and auto title loans. The pandemic has deepened the financial harms that Texans are experiencing from these trends in our economy. Black and Latino Texans are particularly struggling under the weight of these dynamics that undermine financial wellbeing.
Building on our ongoing systemic reform efforts, these priorities will make a meaningful financial difference for Texans harmed by the pandemic, and will help Texans families to rebuild in its wake.