Texas homeowners pay the highest rates in the nation for insurance.

Texas drivers pay some of the highest rates in the nation for auto coverage.

And yes, insurance companies enjoy their best profits in Texas.  Their “loss ratio” for homeowners’ policies averaged 42.7% for the last five years for which statistics are available.  That means that for every dollar collected in premiums, less than 43 cents were paid out in claims.

Texas is a huge market for insurance companies and they should be able to make a fair profit by providing their service here; but, “deregulation” in recent years has effectively destroyed the “free market” competition mechanism that allows consumers to shop for apples-to-apples pricing.  Insurance companies are left to run roughshod over struggling Texas families.

Paying More for Less: A Brief History of Homeowners Insurance Rates in Texas (2001-2006), August 2006, by Texas Watch