For Texas families, the sticker shock has been relentless. The average annual homeowners insurance premium in Texas climbed 79 percent in just six years, rising from under $2,000 in 2020 to over $3,500 in 2026, according to Governor Greg Abbott. That is not a minor inconvenience. It is money that could pay for groceries, school supplies, or a car repair, disappearing instead into a system that has grown costly, opaque, and in too many places, rife with fraud.
In August, the governor issued a series of directives to the Texas Department of Insurance (TDI), demanding concrete action to protect consumers and bring premiums down. TDI Commissioner Amanda Crawford responded this week with a detailed plan of action, and the results deserve attention.
Governor Abbott put it directly: "High insurance costs hit Texas families hard. I directed TDI to put consumers first, and TDI is taking action to do so."
TDI also announced the creation of an Insurance Fraud Task Force, bringing together law enforcement, anti-fraud organizations, and consumer representatives. As PACT has documented, inflated and fraudulent claims are not victimless offenses. They are among the primary reasons every Texan pays more at renewal. As one insurance industry expert in Florida put it, fraud "causes the entire state to have higher premiums because of their loss ratio. They simply transfer the cost over to the consumer, so we are all paying more."
The evidence that this kind of systemic action works is no longer theoretical. Florida enacted sweeping changes to its civil litigation and insurance markets beginning in 2019, and the results have been striking. Over the past year, 42 auto insurers in Florida filed rate decrease applications. State Farm, Progressive, and other major carriers have cut rates by double digits. Florida's Insurance Commissioner declared: "It is very clear that [these reforms were] the right thing to do." Texas lawmakers and regulators now have a blueprint they can follow.
Governor Abbott has already signaled his intent to work with the legislature next session to expand consumer protections and further curb premium increases. PACT is urging for comprehensive action to address lawsuit abuse that drives up costs for every Texas family, whether they live in a Houston suburb, a West Texas town, or a South Texas border community.
Texas families cannot afford to wait. The Texas government is taking meaningful first steps. Now it is time for legislators to build on this momentum and ensure that Texans finally get the relief they deserve.