AUSTIN, Texas (AP) _ A new regulator has allowed State Farm to charge higher rates and deductibles in Texas.
State Farm Insurance on Thursday was authorized to switch many of its 1.2 million homeowner policies to a higher deductible.
The Dallas Morning News reports Commissioner Elanor Kitzman, who took office in August, found no reason to reject the increases. State Farm sought the changes in September.
The new minimum deductible is 1 percent of a home’s insured value, instead of a flat rate.
Critics say a higher minimum deductible means less coverage.
Kitzman also allowed an average 10 percent increase in homeowner rates. State Farm says higher discounts will reduce the actual increase to an average 1.4 percent.
New customers have paid the rates since Oct. 15. Existing policyholders saw the changes Thursday.