Ratewatch: Texas Auto Insurance Plan Rates Set to Go DOWN

Posted & filed under Rate Watch, Texas Car Insurance.

Insurance regulators in the state of Texas announced last week that rates for high-risk drivers insured through the Texas Automobile Isurance Plan Association (TAIPA) would be about 7.6 percent lower in 2011 than they were in 2010. The reduction is being given even though the minimum bodily injury insurance limits will increase when the year turns. Because of both of these changes, insurance industry experts recommend that Texas motorists check their policies to make sure they are getting enough coverage, for the best possible rate.

Just as in most other states TAIPA exists as an assigned-risk pool for otherwise uninsurable drivers who must still have some kind of coverage in order to maintain compliance with state laws. Texas insurance regulators encourage even drivers with questionable driving records to exhaust the possibilities for standard coverage before resorting to the high-risk pool option, but reminds consumers in the Lone Star state that anyone who has been denied coverage by two insurers is eligible to apply for a TAIPA policy.

Motorists who are approved for TAIPA coverage will be placed with a licensed insurer at special TAIPA rates, which are based on loss costs provided by the Insurance Services Office, Inc., and are usually significantly higher than the rates available on the standard market.