Frequently Asked Questions

Q:   Does Texas have the highest title insurance rates in the nation?

A:   No, special interests came to this faulty conclusion from studies that used irreproducible data, online quoting systems and questionable methodology. The claims have been debunked by professional economists.

Q:   Has the price of a title policy in Texas increased?

A:   No, they’ve actually decreased in the past 25 years! In fact, Texas title rates are 15% less today than they were in 1991. If the file-and-use model is adopted, experts predict that the cost of a title policy for the average Texas homebuyer will rise due to less competition.

Q:   Texas uses the “file-and-use” model for auto and homeowners insurance, why shouldn’t we use it for title insurance too?

A:   Title insurance is a risk elimination product with premiums paid only once at closing. It shouldn’t be confused with homeowners and auto insurance policies that protect against future unknown hazards and must be purchased every year. Rate regulation is not one-size fits all. Comparing title insurance to auto and homeowners insurance is a faulty comparison.

Q:   How are rates for title insurance set?

A:   The Texas Department of Insurance determines rates based on real world expense and revenue data in a transparent public hearing where consumers have a seat at the table.

Q:   Will the proposals by special interests help small businesses and jobs in Texas?

A:   No. It would actually force many title insurance agencies in our state to shutter (the vast majority of which are small businesses). The Texas title industry provides more than 13,000 high quality jobs in communities all over the state. The file-and-use model would likely eliminate thousands of these jobs and ship many of the remaining jobs out of the state. The file-and-use model creates more risk, fewer choices, less competition, a loss of thousands of Texas jobs and higher prices for the majority of Texas consumers.