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Texas Department of Insurance
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April 2024

State doesn’t set your insurance premiums



Consumers often tell the Texas Department of Insurance (TDI) that their insurance company or agent told them that their premium went up because the state made them raise rates. TDI doesn’t set the homeowners or auto insurance rates that your insurance company charges.

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 as soon as they send them to TDI.

Companies are required to provide an analysis that supports the rate changes they file. TDI staff review the analysis and ask for more information, if needed, to evaluate whether the rate changes are supported and follow state law.

By law, rates must be adequate; not be excessive; be based on sound actuarial principles; be reasonably related to all costs; and not be based on the insured’s race, creed, color, ethnicity, or national origin.

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

You might want to shop for a better deal.

You can start your search at to get sample estimates. Then call companies to get price quotes.

You might want to call an independent insurance agent. They can help make sure you’re comparing the same type and amount of coverage.

Have a question about insurance? Call the Texas Department of Insurance at 800-252-3439 or visit