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SB 1644

Relating to the use of a consumer's credit score in the underwriting or rating of certain personal lines property and casualty insurance policies.

89th Legislature (2025) Introduced by Charles Schwertner and 1 co-sponsor

Texas prohibits insurers from heavily weighting credit scores in personal property/casualty insurance underwriting and pricing, effective September 1, 2025.

Effective on 9/1/25
#creditreports(s4587) #creditscoring(s0521) #insurance--insurers&agents(i0425) #insurance--property&casualty(i0442)
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Bill Summary · SB 1644

Legislative bill overview

SB 1644 restricts Texas insurers' use of consumer credit scores when underwriting or rating personal lines property and casualty insurance policies (homeowners, auto, renters, etc.). The bill limits how much weight insurers can assign to credit information in their pricing and approval decisions, effective September 1, 2025.

Why is this important

Credit-based insurance scoring significantly affects premium costs for millions of Texans. This bill addresses concerns that credit scores—which correlate with factors like income and financial stress but don't directly measure driving ability or home maintenance—unfairly disadvantage lower-income consumers and may perpetuate systemic inequities in insurance access and affordability.

Potential points of contention

  • Industry costs and rates: Insurers argue credit scores are actuarially sound predictors of claims; restricting their use could increase administrative costs and potentially raise premiums for other consumers to offset lost pricing precision
  • Consumer protection vs. market freedom: Debate over whether legislating rating factors improperly constrains free market competition or appropriately protects vulnerable populations from discrimination
  • Implementation ambiguity: The bill's specific limitations on credit score use may require clarification through regulatory guidance, creating uncertainty during the transition period before the September 1 effective date

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

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