Does the state approve car insurance rates, and what can I do if mine seems too high?

People assume the state signs off on every price. In Texas it does not, and knowing that changes what you do about a high bill. Texas law requires rates that are fair, reasonable, and adequate for the risks covered. The state says plainly that it does not approve rates in advance. But if it finds a company's rates are too high, it can make the company refund the people it overcharged. Companies may appeal those rulings [1]. How does a new price arrive? A company files its rates and formulas with the state. In Texas it may use the new rates the same day it files, or pick a later date [2]. The law does not generally limit how often it may file. But it must hand in an analysis that supports the change. The state's actuaries read that analysis and ask for more if they need it [2].

That gives you a two-step path for a bill that looks wrong, and both steps are in the pages quoted here [1][2]: 1. Ask the company to explain the increase, and to check every discount [2]. 2. Complain to your state insurance department if the company will not explain. That office is the one that can order refunds [1].

Note what this does not mean. "Not approved in advance" is not "unwatched". The filing, the supporting analysis and the refund power are all in the rules quoted here [1][2]. They work after a rate is in use, not before.

What it costs. Neither page quoted here prints a premium, so this answer names none [1][2]. What the pages do give you is the right question to ask the company — explain the increase, and show the discounts [2].

Read the quoted pages at tdi.texas.gov. Most state insurance departments publish rate filings, so you can look up whether your company raised rates for everyone.