You may have been hearing the controversy surrounding the “county mutual” insurance companies in Texas. So, we thought some of the history concerning the county mutual companies in Texas might be of interest to you.

In 1937 the Texas Legislature authorized these insurance companies to write limited lines of insurance that standard markets had no interest in writing. County Mutual companies were not subject to the rate regulations imposed by the state as other insurers were, and this is what is causing the controversy today.

In 1955, legislature enacted a law that said no more county mutual companies could be formed in Texas. They also required them to use the same policy forms, apply rates in a non-discriminatory manner and to submit financial information to the state, like all other insurance companies doing business in Texas.

What is happening now is standard companies that are regulated by the state are “renting” the 23 county mutuals to write most, if not all, of their auto policies. Many companies in Texas use their county mutual connection for their most preferred policies and offer the very lowest rates available! However, they also write high-risk drivers and vehicles at the very highest rate!

So, what is the answer? We believe there is sufficient benefit to you to preserve the current county mutual system. If you have a strong opinion about this, now is a good time to contact your state representative to let your voice be heard.