Texans expect common sense — especially when it comes to the cost of living. Yet when it comes to insurance, common sense disappeared. Premiums are climbing across the state, and the legal system that once helped keep costs under control is beginning to fail.
For years, Texas was the gold standard for sensible legal reform. We were a national model for how to curb lawsuit abuse, protect consumers, and keep insurance markets competitive and affordable. That success was no accident. It came from deliberate legislative action that brought balance and predictability to our courts. When courts are predictable and lawsuit abuse is curbed, businesses have greater stability in their insurance premiums, fewer costs get passed on to consumers, and families pay less.
Today our advantage is slipping away. And the consequences are showing up in the monthly budgets of millions of families. Texans now pay more for insurance than residents of almost every other state. With costs rising and frustration growing, the question is obvious: why hasn’t Texas legislature acted?
The answer is straightforward. Last session, the Texas trial lawyer lobby successfully killed three bills that began to restore sanity to Texas Courts. Legislation that would have increased transparency and curbed self-dealing by the trial lawyers within the legal system never crossed the finish line. As a result, while other states are now seeing insurance markets stabilize or move lower, Texas is falling behind.
In 2023, Florida passed its most significant lawsuit-abuse reforms in decades. Critics warned the changes would befit insurers at the expense of Floridians. The opposite occurred. Florida drivers and homeowners are now seeing relief that seemed impossible just a few years ago. More than 80 percent of Florida drivers are experiencing auto insurance premium deductions this year. Additionally, 15 property insurers have entered Florida’s market, and Citizens, the state’s insurer of last resort—meant to cover homes that are in high-risk areas—is proposing the first rate decrease in a decade.
The lesson is clear: when the enabling mechanisms leading to frivolous lawsuits are dismantled, insurers can price stability into the market. Risk becomes predictable. Competition returns. Consumers win.
Georgia has taken a similar path, passing lawsuit-abuse reforms to rein in excessive verdicts and runaway liability costs. These states aren’t making hollow changes, rather they are fundamentally reshaping their legal environments to attract insurers and drive down the hidden litigation tax embedded into every premium. Less than a year after passing these significant reforms, State Farm announced a 10% reduction in premiums for its Georgia policyholders.
Texas, meanwhile, remains largely unresponsive to an affordability crisis that is quickly becoming a defining issue of the next election cycle. Polls show Texans are increasingly anxious about rising costs — from housing and healthcare to insurance premiums that now consume a growing share of take-home pay.
The data confirms the anxiety. Homeowners insurance premiums in Texas have surged in recent years, with double-digit increases that outpace many other states. Between 2021 and 2024, homeowners in Austin, Houston, Dallas, and San Antonio all saw premiums increase by more than 23%.
By contrast, Florida homeowners experienced the lowest average increase in the nation last year – just one percent.
There is another reality Texans should understand. Trial lawyers — once reliable funders of Democratic campaigns — have shifted strategies. Increasingly, they are investing in Republican primaries, recognizing that shaping primaries can be just as powerful as winning general elections. This quiet political realignment helps explain why reform stalled last session — and why the affordability crisis persists.
Affordability is not an abstract concern. Families are juggling rising insurance bills alongside higher costs for groceries, rent, and utilities. Homeowners watch premiums climb while wondering whether they can afford to stay in their homes long term. While lawmakers have proposed ideas that address pieces of the problem, without tackling lawsuit abuse directly, those efforts will fall short.
Texas has led the lawsuit reform effort for decades. We ushered in reforms that improved fairness in the courts, expanded economic opportunity, and stabilized markets.
States like Florida and Georgia are proving that sensible legal reform works. Texas should continue to be setting the standard – not trailing it.
Affordability will decide elections. Texans are paying attention. And next year, Texans for Lawsuit Reform will work to ensure Texas leads again.
