Why It Matters
Allowing for no competition, this single rate system for title insurance provides no opportunity for insurers to innovate and offer lower rates. Even if a consumer wanted to shop around, which they can do for almost any other product, Texas law prohibits any rate differential, reduced rates or discounts.
Currently, consumers have no way to effectively participate in the insurance rate-setting process. Individual members of the public are excluded and offered no standing to appear as a party and offer evidence at a hearing.
Only title insurance companies, agents, associations, and government regulators have statutory standing for their input to be considered in the rate-setting hearings. Consumers deserve a seat at the table and a voice in the process.
For homeowners, especially first-time buyers, a lack of competition and fixed rates for title insurance mean they’re paying more than they should, potentially putting a home or better property out of reach.
Additionally, some businesses may not relocate or expand in Texas because title insurance rates on commercial property are also far more expensive than other states.
Title insurance companies are the only ones benefiting from today’s Texas title insurance system.