Texas Insurance Rates Are Falling: What the New Rate Cuts Mean for You

The news: insurance rates are moving down for many Texans, according to the Texas Department of Insurance (TDI). Insurers that filed home and auto rate changes since July 1, 2026 have been filing rate decreases — a notable reversal after years of increases, FOX 7 Austin reported on October 8, 2026, citing TDI data.

The headline numbers: homeowners rate changes filed over the past 90 days averaged a 4.3% decrease, affecting roughly 700,000 Texas homeowners. On the auto side, filings affect about 4.4 million Texas drivers. Here's exactly what happened, who benefits, and how to make sure you get the savings you're owed.

The numbers: who filed what

Insurers in Texas must file their home and auto rates with TDI before using them to set premiums, so the agency can review filings for compliance with state law. The latest wave of filings tilts clearly downward:

• Homeowners, −4.3% average across filings over the past three months — affecting about 700,000 policyholders.
• ASI Lloyds (a Progressive company) filed a 6% decrease for roughly 71,000 policyholders.
• Texas Farm Bureau Mutual Insurance Company filed a 5.2% decrease for roughly 133,000 policyholders.

Both ASI Lloyds and Texas Farm Bureau sit among the top 10 insurance groups in Texas by premium volume — so this isn't a fringe trend driven by tiny carriers. When market leaders file lower rates, competitive pressure usually spreads across the market.

"Lower rate filings are an encouraging sign for Texas consumers, and we're pleased to see some relief beginning to reach the market," said Insurance Commissioner Amanda Crawford in the TDI announcement. Governor Greg Abbott added that Texas would hold insurers to state law and work with the Legislature next session to further curb premium increases.

Why Texas rates are falling now

Several forces are converging. Nationally, homeowners rate increases have been slowing — insurers have banked their first underwriting profit in six years as prior rate hikes, tighter underwriting, and improved catastrophe models took hold. Florida, another hard-hit market, has been approving its own wave of rate cuts, with the state insurance commissioner signaling even more aggressive reductions heading into 2027.

Texas follows a similar playbook: after successive years of steep increases (severe weather losses, rising construction costs, and reinsurance prices all played a part), the cumulative price rises have made Texas insurers profitable again — giving regulators room to approve lower filings and carriers reason to compete on price.

Competition matters too. Nearly 160 companies sell auto and homeowners insurance in Texas. When two top-10 groups file decreases, others can't sit on high prices without losing customers at renewal season.

Auto insurance: 4.4 million drivers affected

The auto side may matter even more for the average household budget. Rate decreases filed since July 1 affect roughly 4.4 million Texas drivers, including:

• Auto Club County Mutual Insurance Company: 3% decrease, about 235,000 policyholders.
• Loya Insurance Company: 10.3% decrease, about 39,000 policyholders.

These figures come on top of nationally stable car insurance pricing — the national average for full coverage held steady at around $187 per month through the summer, while liability edged up slightly. Texas drivers have historically paid above the national average, so a downswing here lands harder on household budgets.

If you're a young or new Texas driver, price relief is especially welcome: check our guide to the cheapest car insurance for new drivers in Texas for the carriers that price most aggressively for younger policyholders.

What it means for your wallet

Roughly speaking, a 4.3% decrease on a $2,200 annual Texas homeowners premium saves about $95 a year — not life-changing on its own, but meaningful when combined with the savings available from actively shopping. A driver with a $1,500 annual auto policy would save about $45 a year from a 3% decrease, while Loya's 10.3% filing would save the same driver about $155.

The bigger prize is what happens at renewal: carriers competing on price often quote new-business rates well below what loyal customers pay. In a falling-rate market, the gap between "loyal customer" and "new customer" pricing widens — and shoppers capture it.

One watch-out: if your premium sits in a mortgage escrow account, a lower premium can mean an escrow surplus — money your lender may owe you back or roll into next year's analysis. Check your annual escrow statement rather than assuming the savings vanished.

What to do now: 6 steps to lock in the savings

1. Read your renewal notice — don't assume the trend applies to you. The 4.3% is an average across filings. Check your actual renewal premium before celebrating.
2. Shop at least 3–5 carriers before your renewal date. In a competitive market, one or two aggressive carriers will undercut the rest by a wide margin. Compare apples to apples on dwelling limits, deductibles, and liability.
3. Bundle home and auto. Multi-policy discounts of 10–25% stack on top of market-wide decreases. Get bundled quotes from several carriers, not just your current one.
4. Ask about mitigation discounts. Hail-resistant roofing, water shutoff sensors, and security systems earn discounts in Texas — and cut your actual risk. Ask each carrier exactly which upgrades they credit.
5. Re-check your Coverage A (dwelling) limit. Replacement-cost estimates have been rising; if yours overshoots your real rebuild cost, you're paying for coverage you can't use.
6. Use TDI as a free resource. The Texas Department of Insurance publishes insurer complaint data and rate comparison tools — free information most Texans never use.

Frequently asked questions