Texas’ Title Insurance Tax: Texas One of the Most Expensive Title Insurance Markets in the U.S.

Texas has the most heavily regulated title insurance market in the country. Unlike all but one other state, the government sets a fixed rate for title insurance, preventing competition for consumer’s business. This rate functions as a monopoly price that consumers are forced to pay. By requiring the purchase of comprehensive, one-size-fits-all title insurance policies at a fixed rate, Texas increases costs for both consumers and businesses by millions of dollars every year. This paper shows the source of these excess costs that consumers pay and the excess profits that flow to the Texas title insurance industry: heavy regulation championed by the industry that has resulted in Texas having some of the highest prices for title insurance in the country.