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.