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June Update

Here are the latest rate changes in Texas:


Rate Changes in SERFF:

  • State Farm – up 3.4%

  • Geico – up 5.4%

  • Farmers – down 0.4%

  • AAA – down 2.5%

  • Mercury – up 6% on liab; down 10% on physdam

  • American Freedom – down 7%


 

Rate Changes Imputed in ITC Data:

  • Louis A Williams – up 9%

  • Apollo – up 4%

  • Venture General – up 2.4%

  • Lonestar Maverick – down 3.1%


Latest notes on the Texas market:

 

 1. Shift from Rate Hikes to Retention & Satisfaction

  • After steep premium increases over the past few years, 2025 may mark a turning point: insurers are shifting focus from raising rates toward keeping current customers happy — especially in competitive states like

  • Expect pricing stabilization with slower increases, rather than blanket discounts or reductions 

 

 

2. Telematics & Usage-Based Insurance (UBI)

  • Telematics is booming in Texas—insurance premiums now can be tailored to your driving behavior using smartphone apps or installed devices 

  • Major carriers like Progressive, Allstate, and startups like Root Alinsco and Metromile are increasingly offering UBI programs 

 

3. New Consumer Protections & Legislation

  • A new Texas law effective September 1, 2025, will ban the so-called “widow penalty,” which allowed insurers to raise premiums after a spouse’s death by recategorizing a policyholder from married to single

  • Additionally, Texas AG has filed a lawsuit against Allstate over accusations of covertly harvesting driving data, likely prompting more legal scrutiny

 

 

4. Rising Costs Driven by Tariffs & Climate

  • Tariffs on auto parts from Canada and Mexico could raise repair and insurance costs—Insurify projects that full coverage premiums in Texas could hit $3,000 in 2025 

  • Increased extreme weather—hail, flooding, storms—is driving up claims, with insurers passing these costs on through higher premiums in Texas and the broader Southwest 

 

 

5. Premium Performance & Rate Predictions

  • Texas’s average full-coverage rate rose 15% in 2024 to about $2,712. Projections for 2025 indicate a smaller, yet significant 6–9% increase (depending on tariffs), bringing full coverage near $2,886–$3,000 

  • Minimum-liability policies are also up: roughly $827/year, while full coverage averages near $2,863/year 



 
 
 

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