Rarely does the State of Texas in the United States make headlines for being a progressive and forward thinking place – yet this is the case for one insurance company operating there.

In a bid to tackle the chronic underinsurance within the Lone Star State, particularly among younger people, Precedent Insurance has introduced insurance ‘on demand’.

Precedent, which is underwritten by American Community Mutual Insurance Company, is offering what it calls “a new spin on health insurance” by allowing an estimated three million uninsured young people in Texas to dial up their insurance as required.

Coverage on Demand, as it is known, lets individuals take out basic cover but gives them a dial up option if they need it.

This provides younger people with a guarantee they can increase their level of coverage within a plan year to cover any unanticipated illness or accidents for amounts up to $5 million – even after having incurred the costs.

The products have been given names aimed at appealing to Texas’ youth.

The Coverage on Demand products include “Tempo”, a zero deductible plan that pays 60% of in-network eligible medical expenses; “Rhythm”, with a $250 deductible that pays 70%; and “Groove”, a $500 deductible plan that pays 80%.

Insurance among young people is a problem in America, as it is in other countries, as this demographic is less likely to visit a doctor or need health cover.

Yet freak accidents and other events can leave many people brutally exposed in a country were the onus is on the individual not the system to support people.

U.S. Census Bureau data show that nearly 50 million Americans were uninsured in 2005, with more than 5.5 million uninsured in Texas.

The Lone Star State ranks an unenviable first in the country in the percentage of uninsured residents at 25 per cent.

American Community Mutual Insurance Company, Precedent’s backer, has been in business for more than 70 years.