An Analysis of Title Insurance Data

Texas, along with other states where the government sets title insurance rates, has significantly higher prices than states that allow more competition. On a per-policy basis, Texas's decision to set prices and restrict innovation adds from $292 (in 2001 dollars) to $1,663 (in 2016 dollars) in costs for the average purchaser of title insurance policies of $1 million dollars or less. Our analysis indicates that the promulgation of rates in Texas is a strong determinant that explains the state's higher title-related charges.