Are Texas Insurance Rates Trending Down?

In a significant development published just this week, the Texas Department of Insurance officially announced that home and auto insurance rates are trending downward for many Texans. Here is the full picture — including the important nuances behind the headline.

The Official TDI Announcement: October 8, 2026

The news is genuine and meaningful. Most homeowners insurance companies that filed rate changes with TDI since July 1 proposed decreases — affecting about 700,000 Texas policyholders. Over the past 90 days, filed homeowners rate changes averaged a 4.3% decrease. Among the most significant filings: ASI Lloyds, a Progressive company, filed a 6% rate decrease impacting 71,000 policyholders, and Texas Farm Bureau Mutual Insurance filed a 5.2% decrease affecting 133,000 policyholders. Both are among the top 10 insurance groups in Texas by premium volume.

Auto Insurance Is Also Seeing Decreases

The trend extends to the auto market as well. Auto Club County Mutual Insurance Company filed a 3% rate decrease impacting 235,000 policyholders, and Loya Insurance Company filed a 10.3% rate decrease affecting 39,000 policyholders. Commercial insurance rates globally fell 4% in Q4 2025 — the sixth consecutive quarter of decline — and Texas auto premiums are flattening as carrier profitability returns following a difficult four-year stretch.

The More Complicated Picture: Not Everyone Is Getting Cuts

The headline requires important context that every Texas homeowner should understand. While TDI's release counted policyholders getting cuts, it did not say how many are getting increases. State Farm Lloyds — Texas's largest homeowners insurer — filed a 4% statewide homeowners rate increase on July 29, which, by State Farm's own estimate, will raise rates on more homeowners policies than the 700,000 policyholders TDI said are getting cuts across all companies. In the Houston area specifically, State Farm's filing shows Harris County rates increasing by an average of 3.6%, Fort Bend County 5.3%, and Montgomery County 5.8%.

Why the Market Is Softening

Insurance companies saw fewer losses than usual in 2025 — driven in part by a remarkably quiet hurricane season with zero U.S. landfalls. Carriers that had spent years raising rates to rebuild profitability now have surplus capital and need to compete for market share, creating downward pressure on premiums.

What Texas Homeowners Should Do Right Now

This rare window of market softening is the best opportunity in years to shop for better rates. Insurance Commissioner Amanda Crawford urged Texans to take advantage of the competitive market, shop around, and make sure they are getting the best value for their coverage. Contact the Texas Department of Insurance or visit tdi.texas.gov to search rate filings for your specific carrier.