One in six Texas homeowners could see reduced insurance rates this year, the Associated Press and Houston Chronicle reported.
Several small insurance companies have filed their rate changes for 2005 indicating rate decreases of up to 14.5 percent, according to the Texas Department of Insurance. The state’s largest insurers have yet to file their changes.
Industry leaders attribute the reductions to lower claims costs and stiffer competition among insurers.
“The more competition, the more products and the better it is for consumers,” said Sandra Ray, a spokeswoman for the Dallas-based industry trade group Southwest Insurance Information Center.
Jim Hurley, a spokesman for the insurance department, cautioned that the rate changes have not been reviewed.
“We don’t know if they’re too much or too little,” he said. “We’re going to be looking at each one of these rates and determining if they’re actuarially justified.”
The department can order more rate reductions.
Texas Watch, an Austin-based consumer group, said million of homeowners have yet to see if their rates will be reduced. The companies that filed their changes make up less than 20 percent of the state insurance market.
State Farm and Allstate were not among the companies that submitted rates because the department has proceedings pending against them.
Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Topics Trends Carriers Texas Pricing Trends Homeowners
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