Texas to Up High-Risk Car Insurance Prices in October

Come October, Texas drivers who need to buy high-risk auto policies will see higher rates under some forms of coverage, according to a recent order from the state’s Commissioner of Insurance.

The overall rate hike for personal auto policies under the Texas Automobile Insurance Plan Association (TAIPA) is 5.6 percent: a 6.4 percent increase in bodily injury liability coverage and a 5.3 percent increase in property damage liability coverage.

The commissioner’s order contained no rate hikes for personal injury protection coverage and uninsured/underinsured motorist coverage.

The new rate structure becomes effective in October.

TAIPA policies provide bodily injury liability protection in maximums of $30,000 per person, $60,000 per accident and $25,000 in property damage. The program is meant for motorists who have been rejected from at least two car insurers because of spotty driving records.

According to TAIPA’s latest annual report, the program enrolled 1,360 fewer applicants in 2011 than the year before, a drop of nearly 16 percent. The report showed a little more than 7,360 TAIPA enrollees in 2011.

The number of applications has also dropped, shrinking by nearly 14 percent between 2010 and 2011. The decrease goes back further, and TAIPA officials stated in their report that the program “will continue to shrink in size.”

TAIPA had asked for an overall hike of 7.2 percent for private auto policies to become effective in July. The Texas Department of Insurance held a hearing on the request in February.

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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