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Bill

SB 2585

Relating to disparate premiums for personal automobile insurance policies based on certain characteristics of the insured.

89th Legislature (2025) Introduced by Roland Gutierrez

SB 2585 restricts Texas auto insurers from using certain non-driving characteristics in premium calculations to address potential disparate impact on protected groups.

Referred to Business & Commerce
#insurance--motorvehicles(i0435) #vehicles&traffic--insurance/financialresponsibility(i0850)
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WeVote Research Nonpartisan
Bill Summary · SB 2585

Legislative bill overview

SB 2585 addresses insurance premium pricing practices by restricting the use of certain characteristics to calculate personal auto insurance rates in Texas. The bill specifically targets disparities in how insurers charge different customers, potentially prohibiting the use of factors like credit score, education level, occupation, or other non-driving-related characteristics that may correlate with race, gender, or socioeconomic status.

Why is this important

Insurance premiums directly affect household affordability and consumer access to legally required coverage. If certain rating factors disproportionately burden specific demographic groups, this creates economic inequality. The bill reflects growing national concern that actuarially-justified factors may nonetheless have discriminatory effects, even if unintentional.

Potential points of contention

  • Insurance industry opposition: Insurers argue that factors like credit score and occupation are statistically correlated with claims risk and loss prevention, making them legitimate underwriting tools. Restricting these may increase rates for all customers or reduce market competition.
  • Defining "disparate impact" and enforcement: The bill's language on which characteristics constitute improper discrimination remains unclear. Implementation could be complex and generate litigation over whether correlation equals causation in risk assessment.
  • Market availability concerns: Stricter rating rules might reduce insurers' willingness to write policies in certain markets, potentially creating coverage gaps in underserved communities the bill intends to help.

Compiled from official sources — confirm details with the bill’s official record.

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