Last resort insurance to cost more in Texas
The Houston Chronicle reported last week that drivers who are covered by assigned insurance policies - the auto insurance of last resort - in Texas will see a premium increase on November 1st.
Jerry Johns, a spokesperson for TAIPA, the Texas Automobile Insurance Plan Association said that an increase in the price of premiums is necessary in order to offset the costs of physician fees, hospital services, and vehicle repairs.
The projected increase, to take effect on November 1, 2009, will average about 2.2 percent.
TAIPA, which is known colloquially as the "assigned auto insurance market" is an association which assigns certain drivers, mainly those who are unable to obtain auto insurance from conventional sources, to private companies, which, in turn, issue coverage for the minimum liability required by Texas law, with similar minimum coverage for collision and personal injury protection.
The assigned drivers are high risk consumers, either because of high insurance claim rates, or because of a substandard driving record. Many such consumers have DUI convictions on their records.
TAIPA expects that by the end of 2009, 10,000 will be assigned. They assigned 12, 000 last year.
