On November 2, 2023, Progressive instituted a rate increase on its renewal business, increasing premiums five percent for current policyholders in Texas.
The increase, put into place in an effort to maintain the carrier’s profitability in the state, is expected to drive approximately $116M in incremental revenue for the fourth-largest carrier in the state with an 11% market share.
Just over 1M Progressive drivers in the state will be impacted by the rate increase at policy renewal. For those looking to reduce their auto insurance costs, there are a few options, including:
- Shopping around with other carriers to see if there is a lower premium available for the needed coverages. Try quoting with a few carriers to make sure you’re getting the lowest available price.
- Reducing your coverages. Make sure your coverages are appropriate to your needs. Learn more about the various coverages.
- Increasing your deductible can reduce your monthly insurance costs. However, before raising your deductible, ensure you have the financial means to cover it if you need to make a claim.
- Maximizing savings by utilizing available discounts. Insurance companies often provide reduced rates for factors such as a clean driving record, installation of anti-theft devices, and combining multiple policies. Consult your insurance agent to determine eligible discounts.
With an average current written premium of approximately $2,106, the newly approved rate increase will tack on an additional $105 annually, raising that written premium to an estimated $2,211 per vehicle on average.
In total, it is estimated that this rate increase will impact policies comprising $2.2B in current written premium in Texas, tacking on an incremental $116M in annual premiums. The rate change was submitted on Sept. 28 to the Texas Department of Insurance and approved in short order.
