Texas High-Risk Auto Insurance Rates to Fall in 2011

Map of Texas with longhorn image superimposedOfficials at the Texas Department of Insurance announced last week that 2011 rates for the state’s assigned-risk car insurance plan will be 7.6 percent lower than current rates.

The Texas Automobile Insurance Plan Association (TAIPA) exists to provide Texas auto insurance to drivers who have been denied coverage by at least two carriers due to poor driving records.

All insurers in the state must participate in the TAIPA program, which has pre-set policy rates that are generally much higher than those of policies acquired on the open market.

At the beginning of 2010, TAIPA rates experienced a 2.2-percent increase from 2009 prices.

The new, downward rate adjustment comes despite an impending increase in state-required minimum bodily injury liability protections.

In 2007, legislators instituted a two-stage increase in minimum liability limits. The law raised them from $20,000 for bodily injury liability protection per person, $40,000 per accident and $15,000 for property damage liability per accident — denoted as 20/40/15 — to 25/50/25.

Soon, those minimums will be raised further to 30/60/25.

Both changes take effect Jan. 1, 2011.

About Ben Zitney
Benjamin Zitney has been covering the auto insurance industry for the past 2.5 years. Before coming to Online Auto Insurance News, he produced an extensive company history of the 30-year-old California Joint Powers Insurance Authority and worked at the Cal State Long Beach Daily Forty-Niner as a reporter, copy editor and news editor.

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