Texas Asks for 7.2% Hike to High-Risk Insurance Policies

Texas regulators are proposing a 7.2 percent increase to rates under the state’s insurance program for high-risk drivers that would kick in this summer if approved.

The Texas Automobile Insurance Plan Association (TAIPA) offers coverage for motorists with poor driving records who have been rejected from at least two Texas car insurance carriers.

The overall 7.2 percent increase to personal auto policies is made up of a:
–7.4 percent increase to bodily injury liability coverage
–7.5 percent increase to property damage liability coverage
–3.5 percent increase to personal injury protection (PIP) coverage
–3.6 percent to UM/UIM bodily injury coverage
–1.6 percent to UM/UIM property damage coverage

In the rate filing, TAIPA actuaries said claims rates have been falling and that they expect that trend to continue.

TAIPA has seen shrinking enrollment, with the number of enrollees falling 37 percent between 2005 and 2011, according to its annual report. In 2011, the program insured almost 7,400 drivers.

TAIPA’s last coverage hike went into effect last July, when rates increased by 24.1 percent overall.

The latest rate filing was submitted on Jan. 2. TAIPA asked that a hearing be held within 45 days of the submission on that filing, in which regulators will be presented with the actuarial data.

Under TAIPA’s request, the new rates would be effective July 1 if approved.

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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