As a result of recent legislation (Senate Bill 14 in the 78th Texas Legislature, 2003), the regulatory environment for auto insurance will change. As of December 1, 2004, all auto insurers will be subject to uniform rate standards enforced by TDI. Rates must be reasonable, adequate, not excessive and not unfairly discriminatory.

Companies also must justify their rates with data based on sound principles and show us they used a reasonable rating methodology. Previously, some insurers known as county mutuals were exempt from rate regulation. This change will provide more complete rate protection for consumers as well as a regulatory recourse for problems through TDI's consumer complaint process.