The governor proposed incentives to reinforce roofs and changes in how insurance companies calculate auto policies. The insurance measures would still need approval from the Texas Legislature.
Governor Greg Abbott proposed new measures to reduce the cost of homeowners and auto insurance in Texas, where families face high premiums due to storms, hail, hurricanes and other natural disasters.
Abbott unveiled the proposals on Wednesday, July 15, during a campaign stop in northwest Houston, where he met with residents to talk about the cost of living.
The measures include a program to bolster roofs against hail and wind, as well as a legal change that would allow traffic violations to be considered when calculating auto insurance premiums.
The proposals have not yet been approved and would require action by the Texas Legislature.
Texas faces some of the most expensive homeowners insurance in the country
Abbott noted that Texas is among the states with the highest homeowners insurance costs in the United States.
The state also leads in the amount of hail damage and related claims, according to the governor. Hurricanes, tornadoes, tropical storms and strong winds also raise risk for homes and the cost of policies.
Insurers take into account the frequency of these events, the cost of repairs, and the risk of future losses when setting their rates.
The plan for reinforced roofs could reduce premiums
One of the proposals would create a roof-strengthening program similar to those operating in North Carolina, Louisiana, Kentucky, Oklahoma and other states exposed to severe storms.
The program would promote roofs designed to withstand hail and strong winds better. Abbott stated that such improvements have reduced premiums by about 8% in other states.
The governor also estimated that homeowners could save more than $15,000 over the roof’s lifetime, though savings would depend on the property, the insurer, the location, and the terms of the policy.
Eligibility requirements, funding amounts, or a start date for a program in Texas have not yet been presented.
Traffic violations could affect the price of auto insurance
Abbott also proposed changing state law so that insurers can take traffic violations into account when calculating auto premiums.
The goal would be to offer lower prices to drivers with better records and apply different costs to those who accumulate traffic violations.
Abbott said similar measures could reduce some auto policies by as much as 30%, according to industry estimates.
The reduction would not be automatic for all drivers. The final price would still depend on factors such as age, residence, vehicle, claims history, and level of coverage.
Abbott ties the proposals to the cost of living in Texas
The measures are part of a series of proposals that Abbott has put forward during his re-election campaign to address the cost of housing, taxes, and other family expenses.
The governor has also proposed lowering the cap on property tax appraisals, requiring a two-thirds voter approval for certain tax increases, and gradually eliminating school taxes on residential properties.
Abbott estimated that the school tax-related change could cost roughly $10 billion and said the state would need to identify spending cuts that do not affect education.
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The Legislature would have to approve the insurance changes
The measures on homeowners and auto insurance would not take effect immediately.
Any modification to insurer regulation, the criteria for calculating premiums, or the creation of incentives for reinforced roofs would have to pass through the Texas Legislature.
So far no bill has been introduced with dates, requirements, budget, or specific conditions to apply the proposals.
The next legislative session will determine whether the measures move forward and what changes could reach homeowners and drivers’ policies in Texas.
