How Texas regulates home and auto insurance costs

The Texas Department of Insurance (TDI) doesn’t set insurance rates or premiums. https://tdi.texas.gov/consumer/how-are-your-auto-and-homeowners-insurance-costs-calculated.html

Insurance companies can change their rates and premium formulas by sending them to TDI. This is called a “rate filing.” Companies can use the new rates the same day they send them to TDI or can choose a later effective date.

Texas law doesn’t generally limit how often a company can file new rates, but companies are required to provide an analysis that supports the rate changes they file. TDI’s actuaries review this analysis and will ask for more information if it’s needed to evaluate whether the rate changes are supported and follow state law.

TDI resolves issues in company rate filings that annually saves consumers millions.

State law requires that rates:
- Be adequate.
- Not be excessive.
- Be based on sound actuarial principles.
- Be reasonably related to all costs.
- Not be based on the insured's race, creed, color, ethnicity, or national origin.

Ask about discounts and shop around.

If your auto or home insurance bill is rising, ask your company to explain the increase and ask if you’re getting all available discounts.

#CarInsurance #HomeInsurance #TexasInsurance

00:00 How Texas regulates home and auto insurance costs
00:05 How do insurance companies change rates and premium formulas?
00:14 How often do insurance companies change rates and premium formulas?
00:26 How does TDI analyze insurance company rate filings?
00:50 What does Texas state law require of insurance rate filings?
01:08 Insurance discounts - shopping for insurance

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