High-Risk Drivers Insured by TAIPA Get Hit with Rate Increases
Do you currently have a policy with the Texas Automobile Insurance Plan Association (TAIPA)? High risk policyholders insured under the state program are paying higher rates as of July 1st, as changes take effect.
Drivers in the high risk pool find that there are many barriers to them getting insured. They have to pay higher rates, and that’s if they’re lucky. Some insurance companies choose to simply not insure these individuals at all. Sometimes it can mean the difference between being insured or buying groceries. High risk drivers sometimes determine that insurance is not worth it, and join the ranks of the uninsured.
While not having the minimum required levels of insurance coverage mandated by state is illegal, many people come to this conclusion.
Enter: TAIPA.
TAIPA is there to offer auto insurance policies to those who are essentially uninsurable, or more to the point, those who’ve been turned down by at least 2 insurers within the last 60 days. They provide bodily injury liability insurance, as well as property damage liability.
Currently, TAIPA offers policies with limits as high as $30,000/$60,000 for bodily injury, and $25,000 for property damage. They also offer a form of Personal Injury Protection with limits as high as $2,500. Lastly, they offer Uninsured/Underinsured Motorist coverage with limits as high as bodily injury: $30,000/$60,000/$25,000.
Changes
According to the Commisioner’s Bulletin, insurance premiums under TAIPA will be going up. It states, “The commissioner ordered that the rates charged for private passenger automobile insurance provided through TAIPA increase by 31.9 percent for bodily injury liability and by 20.0 percent for property damage liability. The commissioner did not order changes in the rates for personal injury protection or uninsured/underinsured motorist coverages. The overall increase in the rates for private passenger automobile insurance provided through TAIPA is 24.1 percent.”
While this is less than ideal for drivers struggling to maintain insurance coverage, it is still a viable option. However, less Texas drivers are turning to this program for aid. The program is holding to its purpose, and is providing auto insurance to individuals who cannot otherwise attain it.
If you’re looking to be insured, now is a good time to review Texas’ laws governing auto insurance, and the minimum levels of coverage required by state.
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