Texans are paying significantly more for insurance than residents of almost any othre state, a new report reveals, exacerbating financial pressures on households already grappling with rising costs. A study by the nonprofit the Council for Affordable Health Coverage found that Texas consistently ranks among the top five most expensive states for health insurance premiums, and also faces high costs for auto and homeowners insurance.
The disparity in insurance rates impacts all Texans, but disproportionately affects low- and middle-income families, and also small business owners. While factors like natural disasters and increasing healthcare costs contribute to the problem, experts point to limited competition among insurers and regulatory hurdles as key drivers. The situation is prompting renewed calls for legislative action to increase market competition, lower premiums, and ensure access to affordable coverage for all Texans.
according to the report, average health insurance premiums in Texas are 18% higher than the national average. Auto insurance rates are 32% above the national average, and homeowners insurance has seen a dramatic 40% increase in the last year alone, fueled by severe weather events.
“Texas has a unique set of challenges when it comes to insurance costs,” said Dr. vivian Ho, an economist at Rice University’s Baker Institute for Public Policy, who was not involved in the study. “We have a large uninsured population, a high rate of medical debt, and a regulatory environment that doesn’t always encourage competition.”
State lawmakers have previously attempted to address rising insurance costs through measures like creating a catastrophe insurance fund for homeowners and increasing clarity in healthcare pricing. Tho, advocates argue that more comprehensive reforms are needed, including incentivizing new insurers to enter the Texas market and streamlining the regulatory process. The next legislative session is expected to see renewed debate over these issues, with consumer groups and industry stakeholders alike pushing for solutions.
