Texas 2036: 16.7% uninsured in 2024 amid rising auto costs, lawsuit concerns

Texas 2036 has announced that the state's uninsured rate reached 16.7% in 2024, marking the highest level in two years. This increase is attributed to rising auto insurance costs and lawsuit abuse, as detailed in a statement posted on X.

According to EveryTexan, Texas continues to lead the nation with an uninsured rate of 16.7% in 2024, the highest among all states. This figure represents approximately 5.1 million Texans without health coverage, highlighting a significant gap despite federal subsidies and state programs. EveryTexan also noted that among working-age adults aged 19–64, more than one in five (21.6%) were uninsured, exacerbating financial and health-related risks for families.

The Houston Chronicle reported that average full-coverage auto insurance premiums in Texas increased by 15% in 2024, bringing the statewide annual cost to $2,712. Analysts attribute this surge to higher vehicle repair prices, elevated medical costs, and more frequent liability claims. Projections indicate that premiums could climb an additional 6% in 2025 to $2,886, outpacing the national average and straining household budgets.

Insurance Business Magazine reported that "legal system abuse," including inflated claims and extended litigation tactics, has significantly contributed to rising auto insurance costs. The Insurance Information Institute has documented how attorney involvement often leads to higher claim costs, which insurers pass directly onto policyholders through premium hikes. In Texas, the group Texans for Lawsuit Reform highlighted how "excessive lawsuits and inflated verdicts" have fueled higher costs, reducing affordability and increasing market strain.

Texas 2036 is a nonpartisan public policy think tank founded in 2018 with headquarters in Dallas and Austin. Named after the year of Texas’ bicentennial, its mission focuses on long-term issues such as education, healthcare, infrastructure, justice, and government performance to prepare Texas for future challenges. Through data-driven research and advocacy efforts, Texas 2036 aims to inform policymakers and the public about systemic issues while promoting sustainable solutions for the state.