Auto Insurance to Cost More in Texas. (Briefing).The Texas Department or Insurance approved rate hikes averaging 5.3% in private-passenger automobile benchmark rates, citing unfavorable trends of collision, uninsured motorist and property-damage liability claims. About 74% of the state's private-passenger auto insurers are rate regulated and must comply with the benchmark rating system. The Department of Insurance sets an annual rate that insurers can charge 30% above or 30% below. County mutuals, which insure nonstandard non·stan·dard adj. 1. Varying from or not adhering to the standard: nonstandard lengths of board. 2. risks, aren't subject to the benchmark. Texas is the second-largest auto insurance market in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , with residents paying about $10 billion in direct premiums, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. A.M. Best Co. data. State Farm Group and Allstate are the top auto insurance writers in the state, totaling 35% of the market. The average benchmark rate increase approved by Insurance Commissioner Jose Montemayor is less than that recommended by the insurance industry, 6.9%; state administrative law judges administrative law judge n. a professional hearing officer who works for the government to preside over hearings and appeals involving governmental agencies. They are generally experienced in the particular subject matter of the agency involved or of several agencies. , 5.8%; and a consulting actuary actuary One who calculates insurance risks and premiums. Actuaries compute the probability of the occurrence of such events as birth, marriage, illness, accidents, and death. , who proposed a 5.7% increase on behalf of the insurance department's staff. The state's Office of Public Insurance Counsel recommended increases averaging 5.1%. New benchmark rates will take effect Dec. 31. Rate-regulated car insurers then will have 30 days to file their own rates, based on individual company experience. These rates vary widely from company to company. |
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