Relating to auto insurance regulation, including the creation of the Texas Automobile Insurance Public Option.

SB 1246 would create a state-run auto insurance option in Texas called the "Texas Public Auto Option," administered by the Texas Department of Insurance. It would provide mandatory liability coverage and optional comprehensive/collision coverage to all Texas drivers required to carry insurance, with premiums set at affordable rates based on income. The program would operate alongside private insurers to foster competition, use state funding to ensure affordability, and include fraud prevention measures. It would take effect for new policies starting January 1, 2026.