Learn more about the title insurance industry and find out why rates are too high in Texas.

Competition Is Prohibited in Title Insurance

  • Texas has among the highest rates charged for title insurance in the nation.
  • Texas is one of only two states that fix the rates charged for title insurance.
  • Setting rates eliminates any opportunity for price competition or innovation.
  • Current law does not allow a consumer to shop around for the best rates or policy.
  • Insurers are prohibited from offering lower rates or discounts.
  • On a per-policy basis, price fixing adds from $292 to $1,663 in costs for the average purchaser of title insurance policies of $1 million dollars or less.
  • The added costs are even greater for larger and commercial policies.
  • Setting rates forces expenses to be set high to account for inefficient insurers.
  • The absence of competition makes the purchase of property more expensive.

Consumers Are Denied Full Participation in Rate-Setting

  • Title insurance is the only line of insurance where the state sets a single rate and citizens cannot fully participate in the rate-setting process.
  • This single rate is set in a hearing held by the Texas Department of Insurance every five years, unless set more frequently by the Insurance Commissioner or requested by the title insurance industry.
  • Consumers do not have a way to effectively participate in the rate-setting process.
  • Not only are consumers excluded from effectively participating in hearings, but they cannot request a hearing.
  • Only title insurance companies, agents, associations, and government regulators have input in the rate-setting hearings.
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