If a Texas insurer declines your application, cancels your policy, or refuses to renew it, it now has to hand you a written statement of why. You do not have to request it. You do not have to know that requesting it was ever an option.
That last part is the whole point.
For years the Texas Insurance Code required an insurer to explain itself “on request by an applicant for insurance or a policyholder.” House Bill 2067 struck that clause. It sits in the enrolled bill text in brackets, deleted, and what is left is an obligation the insurer owes you without being prompted.
Read the old version again and you can see the bet. The law protected everybody on paper and protected the handful of people who knew to ask in practice. Most drivers get a nonrenewal notice, swear at it, and go shopping. The explanation was always sitting there. It was just waiting on a request that never came.
What else changed
Insurers now file a report with the Texas Department of Insurance at least once each quarter, summarizing the reasons they gave, organized by the ZIP codes of the applicants and policyholders. TDI has to post an aggregated summary of those reports publicly.
So the state gets to watch which ZIP codes are quietly being cleared out.
Here is the catch. That public summary “may not identify, directly or indirectly, any insurer.” You will be able to see that your part of town is getting dropped. You will not be able to see who is doing it.
And the bill never sets a deadline for your statement. It says the insurer must provide the reasons. It does not say when.
Good rule. Soft edges. Use it, do not wait on it.
Why the reason is worth money
Because the reason decides your next move, and the two most common reasons point in opposite directions.
“Two at-fault claims in three years” is about you. That prices into every quote you get, and the fix is time plus finding the carriers that weigh claims history differently.
“We are reducing exposure in your area” is not about you at all. The identical driver with the identical record is sitting at three other carriers at an ordinary price. Read that letter, assume you are now a high-risk driver, and you will go shopping in the nonstandard market and pay hundreds more a year for a problem you do not have.
Same envelope. Same rejection. Completely different move. That is what the written reason buys you.
Do this
If you got a declination, cancellation, or nonrenewal on a Texas auto or home policy this year, the statement should already be on its way. If a week passes and nothing lands, call and ask for it in writing, and send your request in writing too.
Read it for one question: is this about my record or about my ZIP code?
Then shop it that same week, whichever answer you get. Run your numbers through the insurance estimator, then compare what carriers will actually quote on the auto insurance hub and our best auto insurance picks.
A nonrenewal is not a verdict on you. It is one company’s math, and now you get to read it.
The rule applies to applications made and policies delivered, issued, or renewed on or after January 1, 2026, so most Texas six-month auto policies have already renewed under it at least once. TDI is phasing the reporting in, and phase one is residential property and private passenger auto. That is your car and your house.
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