Texas Insurance Topics to Consider in 2026 | SchellInsurance.com

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Texas insurance is changing dramatically in 2026, and this episode covers everything you need to know about health insurance premium spikes, auto insurance crossing the $3,000 threshold, homeowners market challenges, workers' compensation requirements, and new cyber insurance legislation. Whether you're a Texas consumer or business owner, these changes will impact your wallet.

Health Insurance - Major Premium Increases ACA marketplace premiums jumping 24-33% on average for 2026 due to enhanced federal tax credit expiration. Benchmark silver plans increased from $489 to $661 monthly for 40-year-olds. Texas has unique cost-sharing reduction loading provisions that may help temper increases compared to other states. Open enrollment deadline is January 15, 2026 - don't miss it! Experts estimate hundreds of thousands of Texans may drop coverage due to cost increases.

Auto Insurance - Breaking the $3,000 Barrier Texas auto insurance projected to hit $3,000 annually for the first time in 2026, with a 10% increase ($215 average) over 2025. Rates driven by increased crashes, expensive tech-heavy vehicle repairs, lawsuit trends, weather losses, and high uninsured motorist rates. Texas ranks 10th most expensive state nationwide. Smart strategies include shopping multiple carriers, increasing deductibles, bundling policies for 15-25% discounts, maintaining good credit (Texas allows credit-based scoring), and avoiding small claims.

Homeowners Insurance - Market Tightening Texas homeowners paying $2,258 annually on average for $300,000 dwelling coverage with premiums that jumped 21% between 2022-2023. Severe storms caused $42 billion in insured losses through September 2025. Major carriers pulling out of high-risk areas, pushing FAIR Plan enrollment to 135,000. Approximately 16% of Texas home policies now in Excess & Surplus market. Create detailed home inventory, consider higher deductibles, review policies annually, and compare multiple carriers.

Workers' Compensation - Texas's Optional System Texas is one of only two states where workers' comp is optional for private employers, but businesses without coverage lose legal protection against employee lawsuits. 87% of Texas employees covered despite optional nature. 2026 state average weekly wage set at $1,271.05. Medical inflation driving claim costs higher. Non-subscribers must file Form DWC-005 annually and post notices. Smart business owners understand massive liability exposure of going uninsured.

Cyber Insurance - New Safe Harbor Law Senate Bill 2610 signed June 2025 provides immunity from punitive damages in breach lawsuits for compliant Texas businesses with fewer than 250 employees. Requires documented cybersecurity framework (NIST recommended) implemented 6-12+ months before any breach. Texas breach notification law requires notification within 60 days with penalties of $2,000-$50,000 per violation. Average Texas breach costs $7.91 million, ransomware averages $1.1 million per event. Not state-mandated but increasingly required by contracts.

Why These Changes Matter for 2026 Premium increases across all insurance lines will impact household budgets and business bottom lines. Federal policy changes (health subsidy expiration) creating market instability. Climate risk reshaping homeowners market with $42 billion in storm losses. New cybersecurity legislation creating compliance requirements. Market capacity tightening as carriers exit high-risk areas. Independent agents more valuable than ever for comparing multiple carriers.

Schell Insurance - Your Texas Insurance Partner Schell Insurance understands Texas-specific regulations including optional workers' comp system, cost-sharing reduction loading for health insurance, data privacy laws, and Safe Harbor cybersecurity requirements. They compare multiple carriers to find best rates instead of limiting you to one company. Expert guidance on coverage gaps, new requirements, and policy reviews as market conditions change. Serving Texas consumers and businesses with health, auto, home, business, workers' comp, cyber, and life insurance.

Proactive Steps for 2026 Review all insurance policies now, not at renewal. Get quotes from multiple carriers for auto and home insurance. ACA marketplace enrollees must enroll by January 15, 2026. Business owners should assess workers' comp needs and cyber insurance compliance. Create or update home inventory documentation. Work with independent agent who provides objective advice and access to multiple insurance companies.

Texas Insurance Market Overview $83.1 billion in direct written premiums (2024) with personal auto leading at $35.2 billion. Over 1,167 insurance groups and 3,107 companies writing in Texas. $4+ billion in insurance tax revenue (5th largest tax source). Texas has highest uninsured rate in nation. Home to 2.9 million businesses employing 15.5+ million people. Nearly 4 million Texans bought ACA coverage for 2025.

Contact Schell Insurance Today Don't wait for renewal notices with massive increases. Take action now to review coverage, compare rates, and understand your options for 2026. Schell Insurance provides the expertise and carrier access you need to navigate this changing market.

Phone: (972) 423-4546 Website: https://schellinsurance.com Email: Contact through website

Insurance Topics Covered: Texas Health Insurance 2026, ACA Premium Increases Texas, Texas Auto Insurance Rates 2026, Texas Homeowners Insurance Market, Workers Compensation Texas Optional, Texas Cyber Insurance Requirements, Senate Bill 2610 Safe Harbor, Texas Data Breach Law, FAIR Plan Texas, Excess Surplus Insurance Texas, Texas Insurance Market Trends, Independent Insurance Agent Texas, Schell Insurance Texas, Texas Business Insurance 2026, Insurance Premium Increases 2026

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Speaker 1: Okay, here's what's happening with Texas insurance in twenty twenty-six, and I'm not gonna sugarcoat it - some major changes are coming. If you've got insurance in Texas, you need to understand what's ahead because being proactive right now is gonna save you serious money.

Speaker 2: What's the biggest change people should know about?

Speaker 1: Health insurance is the big one. ACA marketplace premiums are jumping twenty-four to thirty-three percent on average for twenty twenty-six. Those enhanced federal tax credits expired at the end of twenty twenty-five, so carriers raised their rates. A benchmark silver plan for a forty-year-old went from four eighty-nine a month to six sixty-one.

Speaker 2: That's a hundred seventy dollar monthly increase!

Speaker 1: Exactly! And experts estimate hundreds of thousands of Texans might drop coverage because of the cost. Texas already has the highest uninsured rate in the nation. But here's something important - Texas has a state law that might help temper these increases compared to other states. It's called cost-sharing reduction loading, and it gives the Texas Department of Insurance more control over pricing. That's where Schell Insurance can help - they understand these Texas-specific provisions and can find you the most affordable plan. Call them at nine seven two, four two three, four five four six.

Speaker 1: Now let's talk auto insurance, because this affects every driver. Your car insurance is projected to hit three thousand dollars annually for the first time in twenty twenty-six.

Speaker 2: Three thousand? That's huge!

Speaker 1: It is! Twenty twenty-five saw just a two percent increase, but twenty twenty-six is projecting a ten percent jump - that's about two fifteen more on average. And people always ask, "Why is my rate going up when I have a clean record?"

Speaker 2: Right, so what's the answer?

Speaker 1: Your personal record matters, but there's a bigger picture. Texas is seeing increased crashes statewide, and modern vehicles cost way more to repair because they're packed with sensors and cameras. Even minor accidents can cost thousands more than five years ago. Then you've got lawsuit trends, rising medical costs, weather losses, and high uninsured motorist rates all pushing up base rates.

Speaker 2: So what can drivers actually do?

Speaker 1: Shop around! Different carriers price risk completely differently. Consider higher deductibles if you've got an emergency fund. Bundle home and auto for fifteen to twenty-five percent discounts. Avoid small claims that'll increase your rates long-term. Keep your credit strong because Texas uses credit-based scoring. And work with an independent agency like Schell Insurance that can compare multiple carriers instead of just one option. Visit Schell Insurance dot com, that's S-C-H-E-L-L Insurance dot com.

Speaker 2: What about homeowners insurance?

Speaker 1: Tough market! Texas homeowners are paying about twenty-two fifty-eight per year on average, and premiums jumped twenty-one percent between twenty twenty-two and twenty twenty-three. Through September twenty twenty-five, severe storms caused forty-two billion in insured losses.

Speaker 2: Wow! And I've heard some carriers are pulling out of certain areas?

Speaker 1: Yes! Major carriers are either leaving high-risk areas or dramatically reducing capacity. That's pushing more people to the FAIR Plan - a last-resort option with higher premiums and limited benefits. Enrollment hit one hundred thirty-five thousand. And about sixteen percent of Texas home policies are now in the Excess and Surplus market, which typically costs more.

Speaker 2: What should homeowners do?

Speaker 1: Create a detailed home inventory with photos and serial numbers, store it in the cloud. Consider higher deductibles. Review your policy annually as home values rise. And definitely compare quotes from multiple carriers because rates vary dramatically right now. Schell Insurance can shop that market for you - call nine seven two, four two three, four five four six.

Speaker 1: Now, something unique to Texas - workers' comp is optional for private employers. Texas is one of only two states like this.

Speaker 2: So businesses don't have to carry it?

Speaker 1: Right, but here's the critical part - if you don't carry it, you lose legal protection against lawsuits from injured employees. An injured worker can sue you directly, and you can't use standard defenses. That's massive exposure! Despite being optional, eighty-seven percent of Texas employees are covered because smart business owners understand the risk.

Speaker 2: What about cyber insurance? That seems increasingly important.

Speaker 1: Huge topic! Governor Abbott signed Senate Bill twenty-six-ten in June twenty twenty-five - the Safe Harbor Law. If your Texas business has fewer than two hundred fifty employees and you implement a recognized cybersecurity framework like NIST, you get immunity from punitive damages in data breach lawsuits. You're still liable for actual damages but protected from devastating punitive awards that can bankrupt businesses.

Speaker 2: That's a big incentive!

Speaker 1: It is, but you cannot qualify after a breach occurs. You need documented compliance six to twelve months before any breach. Courts scrutinize everything. Plus, Texas law requires breach notification within sixty days. Penalties are two thousand to fifty thousand per violation, plus daily fines. The average breach in Texas costs seven point nine one million dollars, and ransomware averages one point one million per event.

Speaker 2: So cyber insurance isn't required but it's smart?

Speaker 1: Exactly! It's not state-mandated but increasingly required by contracts - government work, vendor agreements, banking relationships. And it covers breach investigation, ransomware recovery, business interruption, legal defense, regulatory fines where allowed.

Speaker 1: Here's the bottom line - twenty twenty-six brings significant insurance changes to Texas. Health premiums spiking, auto rates crossing three thousand, homeowners market tightening, new cyber requirements for businesses. These changes will impact budgets.

Speaker 2: So what's the key takeaway?

Speaker 1: Be proactive, not reactive! Don't wait for your renewal notice with a massive increase. Start shopping now. Review coverage now. Work with Schell Insurance - they're not captive to one company, so they can compare carriers and find you the best combination of coverage and price. They understand Texas-specific regulations like optional workers' comp, cost-sharing reduction loading for health insurance, data privacy laws, all of it.

Speaker 2: What should people do this week?

Speaker 1: Take thirty minutes to review your insurance. Pull out your policy documents. Look at coverages and premiums. Then call Schell Insurance at nine seven two, four two three, four five four six or visit Schell Insurance dot com - S-C-H-E-L-L Insurance dot com - and have a conversation about whether your coverage still makes sense for twenty twenty-six.

Speaker 2: Insurance is one of those things where proactive effort saves thousands!

Speaker 1: Exactly! Let Schell Insurance do the heavy lifting of comparing options and explaining coverage. In a changing market like this, having the right insurance partner makes all the difference. You can reach them at nine seven two, four two three, four five four six, or visit Schell Insurance dot com - that's S-C-H-E-L-L Insurance dot com. Thanks for listening, and here's to a well-insured twenty twenty-six!