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Bill

SB 213

Relating to prohibiting insurers from requiring the tying of residential property and personal automobile insurance policies.

89th Legislature (2025) Introduced by Carol Alvarado and 10 co-sponsors

Texas law now prohibits insurers from requiring bundled residential property and auto insurance, enabling consumers to purchase policies separately and potentially increasing competition and choice.

Effective on 9/1/25
#insurance--fire #alliedlines&home(i0430) #insurance--general(i0445) #insurance--motorvehicles(i0435) #insurance--property&casualty(i0442) #vehicles&traffic--insurance/financialresponsibility(i0850)
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WeVote Research Nonpartisan
Bill Summary · SB 213

Legislative bill overview

SB 213 prohibits insurance companies in Texas from requiring customers to bundle their residential property insurance with personal automobile insurance as a condition of obtaining either policy. The bill takes effect September 1, 2025, and prevents insurers from using policy tying as a sales or retention practice.

Why is this important

Policy bundling requirements can limit consumer choice and potentially force customers to accept less favorable terms or higher prices to maintain coverage they need. By eliminating mandatory tying, the bill aims to increase competition and allow consumers to shop for homeowner's and auto insurance independently, potentially reducing costs and expanding coverage options.

Potential points of contention

  • Industry concerns: Insurers argue that bundled policies allow them to offer discounts and manage risk more effectively; prohibiting tying may increase their costs and reduce profitability, potentially leading to higher individual policy prices for some consumers
  • Discount elimination: While unbundling increases choice, customers who previously benefited from substantial bundled discounts may face higher overall insurance costs if they maintain separate policies
  • Market complexity: Allowing separate policy purchases increases administrative complexity for insurers and may disproportionately affect rural or underserved areas where fewer standalone options exist

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

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