Auto Insurers In Texas Raising Their Rates

Customers of the Texas'largest auto insurers are seeing rates jump this year anywhere from an average 1.8 percent to an average 12.4 percent. Farmers, State Farm County Mutual, Allstate Indemnity and Mid-Century began notifying state regulators about the increases in late December.

Under the file-and-use system adopted in 2003, insurers can implement rates immediately after filing them with the department, which then can challenge them upon review and demand refunds. The insurance companies say the rate increases are necessary because of higher anticipated losses.

State Farm County Mutual Insurance Co.'s 5.5 percent statewide average increase affects 6 percent of State Farm's 3 million auto customers in Texas. State Farm County Mutual Insurance Co.'s 5.5 percent statewide average increase affects 6 percent of State Farm's 3 million auto customers in Texas. The increase is being implemented on all new and renewing customers effective Dec. 31. Customers of State Farm's other much larger unit, State Farm Mutual Automobile Insurance Co., will not see a rate increase.

Farmers is imposing a 9.9 percent statewide average increase; and Mid-Century, which is a Farmers unit, is raising its rates an average 4.5 percent. Both went into effect Friday for existing and new customers.

Allstate's statewide average 12.4 percent increase goes into effect March 7 for existing customers of the company's subsidiary Allstate Fire and Casualty Insurance Co., which insures about 420,0000 policyholders and is the only Allstate unit in Texas taking new auto customers. Allstate Indemnity customers, which insures many of the company's 1.9 million other customers, will see an average 1.8 percent increase. Allstate last increased rates 3 percent in July.

This year, the company also increased a discount to 5 percent from 2 percent for customers who have their payments automatically deducted from their checking or savings accounts.