Texas Watch—Consumer Protection. Corporate Accountability. Citizen Advocacy.

State Farm Insurance told the state Thursday that it intends to raise its homeowners rate 4.5 percent statewide starting May 1, only eight months after the company boosted rates 8.8 percent.

Insurance Commissioner Mike Geeslin, who is powerless to stop the rate hike, asked State Farm in a letter to reconsider, saying such back-to-back increases could influence other insurers and rock consumers.

“Given that State Farm Lloyds is the market leader, writing nearly 30 percent of the homeowners market, other companies may follow suit, which would lead to further market instability,” Geeslin wrote in a letter dated March 5.

“The timing of this filing causes me concern,” he said, because the last increase has been in effect for such a short time. “Multiple rate increases within such a short period of time may indicate a lack of rate-making discipline and lead to market instability.”

…

Alex Winslow of the consumer advocate group Texas Watch said State Farm is taking full advantage of the weaknesses in the Texas insurance system.

“All the insurance commissioner can do is ask State Farm to please not gouge Texas homeowners,” Winslow said.

Under the Texas system enacted in 2003, insurance companies file notice of their rate increases and the justification behind the rates.

Read More: The Dallas Morning News