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Bill

SB 593

Relating to personal automobile or residential property insurance premium increases for claims subject to sovereign, governmental, or official immunity.

89th Legislature (2025) Introduced by Royce West

Texas bill prohibits auto/home insurers from raising premiums when claims stem from government actions protected by sovereign immunity.

Referred to Business & Commerce
#civilremedies&liabilities(i0065) #insurancerates(s0525) #insurance--fire #alliedlines&home(i0430) #insurance--motorvehicles(i0435) #insurance--property&casualty(i0442)
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Bill Summary · SB 593

Legislative bill overview

SB 593 would prohibit insurance companies from increasing premiums on personal auto or homeowners policies when a claim results from actions by government entities or officials protected by sovereign immunity. The bill essentially shields policyholders from rate hikes when they file claims arising from government negligence or actions that the government cannot be sued for.

Why is this important

Insurance companies typically raise premiums after claims to offset losses, a standard practice called experience rating. This bill would create a carve-out preventing those increases specifically when government immunity prevents recovery. This could affect how insurers price risk and manage their costs, potentially shifting financial burden.

Potential points of contention

  • Insurance industry opposition: Insurers may argue this artificially restricts their ability to adjust premiums based on actual claims history, potentially leading to higher rates for all policyholders to compensate for unrecovered losses
  • Defining scope: Questions exist about what qualifies as "sovereign immunity" claims versus standard negligence, and how insurers would verify immunity status before determining rate increases
  • Equity concerns: Creates unequal treatment—some claimants avoid rate increases while others don't, raising fairness questions about premium structures and cross-subsidization among policyholders

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

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