The 1.3 percent decrease is a statewide average. Texas is divided into 52 rating territories in order to reflect claim experience in various areas of the state. For example, rates tend to be higher in urban areas than in rural counties. Benchmark rates are a yardstick for insurance companies to follow in setting their actual rates. Several challenges have been made the last two years, resulting in even deeper rate cuts for some companies.
Benchmark rates apply only to drivers insured by rate-regulated insurance companies.
About 25 percent of the insured vehicles in Texas are covered by county mutual companies that, by law, are exempt from auto rate regulation. He said he changed the rating symbols and the charges and savings for various deductible options to more accurately reflect the repair costs of vehicles on the market today. This is an important first step in adjusting the system, and other proposed changes relating to territories and classes will need to be considered in future benchmark rate cases.