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

🟡 SB 1644: Credit scores in home and auto insurance

What it says it does:
Requires insurance companies that use credit scores to check them at least every three years and lets customers request a re-check once a year. If credit information hurts a customer, the report must be recent and the customer must be notified of their right to ask for a re-rate.

What it actually changes:
Sets a routine cycle for credit-based re-rating, gives consumers one formal request per year, and forces insurers to use fresher reports when raising rates. It removes earlier draft language that would have required automatic notices to all policyholders and an opt-out choice.

Who is pushing for it:
Insurance Council of Texas, American Property Casualty Insurance Association, Texas Farm Bureau Insurance. Consumer advocates like Texas Watch and the Office of Public Insurance Counsel also engaged in testimony.

Who benefits:
Insurers gain predictability and retain control over how scores are used. Consumers who know about the annual request and whose credit improves can lower their premiums.

Who gets left out or exposed:
Policyholders with declining credit or those unaware of their right to request a re-check may face increases without notice. Without public reporting, communities cannot see whether the rules lower or raise premiums overall.

Why this matters long term:
It locks in credit-based insurance pricing as the standard and reduces chances for broader reforms. Over time, it could widen gaps for households hit by credit shocks while keeping the process opaque.

What to watch next:
How many Texans actually use the annual request right, whether insurers notify customers clearly, and if lawmakers revisit stronger transparency like reporting on outcomes or automatic notices.

Bottom line:
SB 1644 sets rules that sound consumer friendly but leave insurers in control. Texans must actively request their re-checks to see any benefit, while the system stays hidden from public review.

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