Texas Insurance News 2026: Key Developments Shaping the Market

From new transparency laws to fraud warnings and market shifts, 2026 has been a year of significant change for Texas insurance. Here is a roundup of the key developments affecting policyholders, agents, and insurers across the state.

TDI Launches New Transparency Tools for Home and Auto Insurance

The Texas Department of Insurance (TDI) has created new online resources to give Texans access to data the agency collects about home insurance claims, premiums, and rate filings.

The new tools include:

• Texas homeowners insurance market overview — shows average annual premiums in every Texas county from 2019 to 2025
  
• Texas homeowners losses by county — shows loss types and dollar amounts paid out on home insurance claims
  
• Search home and auto insurance rate filings — allows users to check whether specific companies have recently filed rate changes

TDI said the resources are part of a broader effort to increase transparency and help Texans make more informed insurance decisions.

New Law Requires Insurers to Explain Policy Denials

House Bill 2067, which took effect January 1, 2026, now requires insurance companies to provide a written reason for declining, canceling, or non-renewing an auto or homeowners policy.

The law applies to all property and casualty insurers, including farm mutual insurance companies, and covers decisions made after January 1, 2026. It gives homeowners and drivers the knowledge to fix issues and keep their policies insurable.

Later this year, companies will also begin providing TDI with quarterly reports summarizing their reasons for adverse actions.

Texas Rejects 10% Rate Hike for Coastal Homeowners

Texas Insurance Commissioner Cassie Brown rejected a proposed 10% insurance rate hike for many Gulf Coast homeowners and business owners. The increase was sought by the state's insurer of last resort for homes and businesses on the Gulf Coast.

The decision provided relief for coastal policyholders facing rising premiums in storm-prone areas.

Texas Insurance Costs Surge 79% in Six Years

The average annual homeowners premium in Texas has increased from under $2,000 in 2020 to over $3,500 today — a 79% increase in six years. The sharp rise has drawn attention from lawmakers questioning the impact of AI on rates.

Homeowners insurance rates climbed by nearly 19% in 2024, down slightly from more than 21% the previous year. Legislators have advanced bills to limit how much companies can hike rates and help homeowners make their homes more insurable.

TAIPA Auto Rates to Increase November 1

TDI approved rate increases for the Texas Automobile Insurance Plan Association (TAIPA), effective November 1, 2026.

The increases:

• 2.8% for private passenger automobile
  
• 4.9% for commercial automobile

TAIPA provides coverage for drivers who have been denied by at least two Texas-authorized insurers. The new rates apply to both new and renewal business.

FAIR Plan Rates Effective September 1

TDI approved the Texas FAIR Plan Association's 2026 residential property rate filings, effective September 1, 2026.

Rate changes by policy type:

• Homeowners: -2.6% (decrease)
  
• Condominium: -7.5% (decrease)
  
• Tenants: -25.0% (decrease)
  
• Dwelling fire: +3.5% (increase)
  
• Dwelling extended coverage: +21.6% (increase)

TDI Warns About Fake Auto Insurance Policies

TDI has issued multiple warnings about a growing trend of fake auto insurance policies sold online. Fraudsters target victims on social media with unusually low-cost insurance offers, collecting money but never purchasing actual coverage.

How to protect yourself:

• Call TDI's Help Line at 800-252-3439 or use the online agent lookup tool to verify licenses
  
• Don't pay for insurance using third-party apps
  
• After buying a policy, call the insurance company directly to confirm the policy exists in your name

The numbers: TDI recorded 37 reports of insurance card fraud in just the first three months of 2026. In 2025, there were 126 fraud reports about fake insurance cards. TDI's Fraud Unit investigated 314 cases in fiscal year 2025, contributing to $50.9 million in court-ordered restitution for victims.

TDI Appoints New Chief Prosecutor for Fraud Enforcement

TDI has appointed Patrick Cryer as its new Chief Prosecutor and Fraud Counsel. Cryer, who previously served as a prosecutor in Dallas County, is now leading fraud enforcement efforts in Austin.

"By holding offenders accountable, prosecutors help protect both consumers and the integrity of Texas' insurance system," Cryer said.

TDI Celebrates 150 Years of Service

In 2026, TDI is celebrating its 150-year anniversary. The department was created in 1876 when the 15th Legislature established the Department of Insurance, Statistics, and History.

Governor Abbott Unveils Plans to Lower Insurance Costs

Governor Greg Abbott has announced multiple proposals aimed at lowering insurance costs for Texans:

Home insurance:

• A $400 million Texas roof fortification program to help homeowners strengthen roofs against hail and wind damage
  
• Could reduce premiums by about 8% and save homeowners over $15,000 over the life of a roof

Auto insurance:

• Proposing to change Texas law to let insurers consider moving violations when setting rates, rewarding safe drivers with lower premiums

Health insurance:

• A plan to allow small employers to offer group health insurance meeting federal requirements without state-specific mandates
• Only 27% of Texas small businesses currently offer health coverage
• The plan could save families nearly $1,145 and small businesses over $3,400 per year

Stay Informed with Time2Renew

The Texas insurance landscape is changing fast — from new transparency laws and fraud warnings to rate updates and affordability proposals. Staying current is essential for insurance professionals.

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