TULSA, Okla. — Oklahoma ranks among the top three most expensive states for homeowners insurance, with the average cost for a $300,000 home reaching just over $6,000 annually, according to 2025 NerdWallet data.
This week, state lawmakers held an interim study hearing to examine why insurance costs are so high and discovered some surprising factors driving up premiums beyond the obvious severe weather risks.
"We don't have any regulations in place that can limit or reject premium increases," said Sen. Julia Kirt, D-Oklahoma City. "We actually only have legislation, laws on the books that if it's too low, that would limit that. And so that was a pretty big revelation. We should have some way that we're reviewing rates and making sure that they really are relevant to the risk in the state "
Credit scores significantly impact rates
One major factor affecting homeowners insurance costs is credit scores, which many consumers may not realize plays a role in their premiums.
"Your credit score does factor into your insurance rates," said Ted Rossman, a Bankrate financial analyst. "It's basically a measure of financial responsibility."
Those with poorer credit scores often pay significantly more for the same homeowners coverage as those with good credit.
Minimal oversight on rate increases
Lawmakers also learned that insurance companies in Oklahoma face few barriers when implementing rate hikes. The state operates under a "file and use" system, meaning insurers can begin using new rates as soon as they're filed with regulators.
"Right now, we really don't analyze it," Kirt said. "We have a system that's called file and use, so they just start using those new rates."
Bipartisan support needed for reform
Kirt noted that changing the current system will require cooperation across party lines, but she sees potential for agreement on at least one issue.
"We have to have bipartisan support," Kirt said. "I think there immediately was some discussion that we might have support across the aisle on getting rid of the credit score being part of premiums."
Ways to reduce insurance costs now
While lawmakers work on potential reforms, homeowners can take several steps to manage their insurance costs:
- Comparison shop annually: Rates can vary widely between insurance companies
- Raise your deductible: If you have ready funds to cover higher out-of-pocket costs when disaster strikes
- Ask about discounts: Inquire about bundling options and other discounts that could lower premiums
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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