Texas HB946 prohibits oral releases for automobile insurance claims starting January 1, 2026.

Texas HB946 amends the Insurance Code to prohibit oral releases for automobile insurance claims. An oral release is an oral contract where a claimant releases claims for property damage or injury in exchange for money or other consideration. The bill applies to insurers writing personal or commercial automobile insurance in Texas. Oral releases entered into on or after January 1, 2026, are not enforceable unless they are separate written agreements. Contracts entered into before January 1, 2026, are governed by existing law. The changes take effect September 1, 2025.

Texas HB946 prohibits oral releases for automobile insurance claims starting January 1, 2026.

Texas HB946 amends the Insurance Code to prohibit oral releases for automobile insurance claims. An oral release is an oral contract where a claimant releases claims for property damage or injury in exchange for money or other consideration. The bill applies to insurers writing personal or commercial automobile insurance in Texas. Oral releases entered into on or after January 1, 2026, are not enforceable unless they are separate written agreements. Contracts entered into before January 1, 2026, are governed by existing law. The changes take effect September 1, 2025.