Texas insurance regulators are warning companies that they cannot charge a customer more simply because the customer appears unlikely to shop around. On September 2, 2026, the Texas Department of Insurance (TDI) issued a bulletin stating that price optimization violates Texas law when insurers use factors unrelated to insurance risk or company expenses to set premiums.
The practical point for Texans is straightforward: an insurer can still raise home or auto premiums when its risk and cost data support an increase, but it cannot lawfully turn a policyholder’s loyalty or predicted willingness to tolerate a higher price into a separate pricing factor.
What Texas means by “price optimization”
In Commissioner’s Bulletin B-0007-26, TDI describes price optimization as varying premiums using factors that are not tied to a policyholder’s risk of loss or the insurer’s expenses. One example is using a prediction about whether a customer is likely to renew, shop for a lower premium, or accept a price increase.
TDI says that if two policyholders have essentially the same risk profile but receive different premium increases because one is considered less likely to shop around, that can amount to unfair discrimination. The bulletin points to Texas Insurance Code provisions governing prohibited discrimination and prohibited rates, including Chapters 544 and 560.
The ban does not freeze insurance premiums
This is an important distinction. Texas has not announced a general freeze on home or auto insurance prices. TDI’s consumer guidance explains that premiums can change because the cost of future claims changes and because a customer’s own risk factors can change. Insurers may also account for broader costs such as vehicle repairs, building materials, weather losses, inflation, and reinsurance.
Texas law requires rates to be tied to legitimate insurance considerations rather than an estimate of how much extra a particular customer will tolerate. TDI’s September guidance says “price optimization” is the line insurers may not cross.
What insurers can still consider
According to TDI’s explanation of home and auto insurance pricing, common home-insurance factors include a home’s age, roof age and material, location, replacement cost, claims history, and credit information. Auto pricing can consider factors such as claims history, where and how much a person drives, age, gender, marital status, occupation, vehicle replacement cost, and credit information.
Those examples matter because a renewal increase is not automatically evidence of illegal pricing. A higher premium can result from a change in a legitimate rating factor or from an insurer’s broader claims and cost experience.
Why Texas issued the reminder now
The September bulletin followed a broader push by state officials to address the affordability of property and auto insurance. In its consumer-facing announcement, TDI emphasized that insurance pricing should reflect genuine risk rather than a company’s estimate of a customer’s shopping behavior.
The issue is particularly relevant when many households are already scrutinizing renewal notices. TDI has also published statewide data showing that insurance rates and premiums can move substantially over time and has expanded public access to home-insurance premium and rate-filing information.
What Texas policyholders can do when a premium jumps
Ask the insurer for an explanation. TDI says your insurance company should be able to explain why your premium changed. Ask which rating factors changed at renewal and whether any discounts were removed or added.
Compare equivalent coverage. A cheaper quote is not necessarily a better deal if deductibles, liability limits, exclusions, or replacement-cost provisions are different. TDI points consumers to HelpInsure.com for sample estimates and company information and also suggests comparing quotes from multiple companies or an independent agent.
Keep your renewal documents. If you believe an increase cannot be explained by risk, coverage, discounts, claims costs, or other legitimate factors, keeping renewal notices and written explanations can make it easier to describe the problem clearly.
Contact TDI if the issue is not resolved. TDI’s Help Line is 800-252-3439, available from 8 a.m. to 5 p.m. Central time Monday through Friday. The department’s insurance complaint page explains how consumers can seek help with complaints involving companies, agents, and adjusters.
Does this mean loyal customers will automatically get refunds?
No automatic refund program was announced in the September 2 bulletin. The document is a regulatory warning to insurers and their representatives that TDI considers price optimization inconsistent with Texas law. Whether a particular policyholder was overcharged depends on the facts of that policy and the insurer’s rating process.
Consumers who question a specific premium should start by asking the company what caused the change and then contact TDI if they need regulatory assistance. This article provides general information and is not legal or insurance advice.
Official sources
Primary sources used for this explainer: Texas Department of Insurance Commissioner’s Bulletin B-0007-26; TDI consumer guidance on discriminatory pricing; TDI guide to how auto and homeowners insurance costs are calculated; and TDI insurance complaint assistance. Sources were reviewed September 15, 2026.
For more on how we verify current information, see our Sources and Fact-Checking policy.
