Two auto insurance companies operating in Texas are facing a putative class action lawsuit accusing them of targeting low-income residents, collecting premiums and then “disappearing” when insureds make a claim.
Houston personal injury law firm Kherkher Garcia filed the lawsuit in Harris County District Court Tuesday evening on behalf of “hundreds and possibly thousands of Texas insureds” who have policies with AmTex Auto Insurance and Redpoint County Mutual Insurance Company. The lawsuit alleges the insurance companies target low-income communities where individuals can afford only the bare minimum in insurance coverage.
“On information and belief, this is not a one-off mistake,” the suit reads. “It is part of a broader claims-handling practice used against low-limit Texas insureds across the state: collect premiums and fees on the front end, then invoke unsupported ‘non-cooperation’ on the back end when the insured needs a defense, settlement or indemnity.”
Lead lawyer Daniel Dutko of Kherkher Garcia told The Lawbook Thursday AmTex is the company that operates the storefront insurance outposts, typically found in low-income areas, and that Redpoint is the entity that actually issues the policy.
“All [the insureds] know, when they get their insurance card, is to call this number if you have a claim,” Dutko said. “So they have this number, and either nobody answers or nobody calls them back. We believe this is a problem all across the state.”
Cesar Rene Gonzalez, who lives in Maverick County and is the lead plaintiff in the lawsuit, purchased a private-passenger auto liability policy from Redpoint to cover his 2006 Ford F-150 SuperCrew. The policy documents identify an AmTex agent in Eagle Pass as his insurance agent. After he was involved in a vehicle crash in July 2025, he reported the incident to AmTex but “heard nothing” in response.
“When Mr. Gonzalez was sued as a result of the accident, he against notified AmTex and Redpoint. He heard nothing,” the lawsuit alleges. “When the other driver threatened to take a default judgment against Mr. Gonzalez, he desperately tried to contact AmTex and Redpoint, even mailing them the lawsuit papers. He heard nothing.”
The lawsuit alleges that the suit filed by the other driver included claims for bodily injury and property damage that “triggered Redpoint’s duty to defend.”
“When the court entered a default judgment against Mr. Gonzalez for more than $400,000, he did everything he could to get AmTex and Redpoint to protect him, as they promised they would. He heard nothing.”
While Gonzalez was getting silence from his insurers, the lawsuit alleges, representatives of both companies were communicating with representatives of the other driver telling them “that there was no insurance coverage because he failed to cooperate.”
“Mr. Gonzalez did everything he could to cooperate,” the lawsuit alleges. “AmTex and Redpoint simply did not want to pay to defend him.”
Redpoint has been in trouble with the Texas Department of Insurance over its claims-handling issues before, the lawsuit alleges, detailing a 2023 consent order that found the insurer was the subject of 244 complaints between May 2021 and February 2023 regarding its delays in handling claims, failure to remit payments and “a widespread lack of communication with claimants.”
“These regulatory findings support plaintiff’s allegation that defendants’ non-cooperation practice is part of a broader claims-handling system that failed to communicate with insureds and claimants, failed to maintain and audit claim records, failed to timely handle claims, and then shifted the consequences of those failures to low-limit Texas insureds,” the lawsuit alleges.
The insurance companies are facing claims for civil conspiracy, fraud and fraudulent misrepresentation, negligent misrepresentation, violations of the Texas Deceptive Trade Practices Act and the Texas Insurance Code, breach of duty of good faith and fair dealing and breach of contract.
Dutko said he got involved with the case when Gonzalez, a friend of a lawyer he worked with years ago, called for help locating a lawyer to handle the Maverick County case.
“In the course of that, I started asking questions,” he said. “That’s when all of this started. … We are still looking for a lawyer who can focus on the judgment, but hopefully by filing this lawsuit the insurance company will do the right thing and pay this judgment.”
The case has been assigned to Harris County District Judge Christine Weems.
The plaintiffs are also represented by Steve Kherkher, Jesus Garcia Jr. and Eric Hawley of Kherkher Garcia.
Counsel for the defendants had not filed an appearance as of Thursday. The companies did not respond Thursday to requests for comment.
The case number is 2026-31896.