Rising Cost of Insurance: Senate Committee on Business & Commerce
- Tom Wolfe
- Oct 1, 2024
- 1 min read
The best approach for policymakers is to resist the call to intervene in the P&C market.
Property and casualty (P&C) insurance rates nationwide have soared since 2021, with some states- particularly Florida and California- seeing dramatic increases. According to a November 2023 release by the Congressional Research Service (CRS), auto insurance rates increased by an average of 18.9 percent year-over-year. From January 2023 to February 2024, homeowners insurance premiums rose by 23 percent on average. Commercial property insurance premiums have seen a relentless rise: the second quarter in 2023 marked the 23rd consecutive quarter in which they rose.
The soaring cost of homeowners insurance is regrettably offsetting the property tax relief that the Legislature has recently provided to Texans. Texas now ranks in the top few states in the country in terms of average annual homeowners insurance premiums.
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