SB 1246 creates the Texas Automobile Insurance Public Option, a state-run auto insurance program administered by the Texas Department of Insurance. The program provides mandatory liability coverage and optional comprehensive and collision coverage to eligible Texas drivers. Premiums will be set using actuarial principles, with a sliding scale for low-income policyholders. The plan will operate alongside private insurers to foster competition, and a biennial study will assess its market impact. The bill takes effect on September 1, 2025, with policies available starting January 1, 2026​.