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Texas Plans to Increase Rates for High Risk Car Insurance

High risk drivers in the state of Texas will be paying a bit more for car insurance this fall. The state’s Commissioner of Insurance recently announced some changes to the cost of coverage for personal auto insurance policies under the Texas Automobile Insurance Plan Association (TAIPA).

Those with a clean driving record and a standard auto insurance plan need not worry about the increase in the price of their premium. The increases will only impact drivers that have been rejected by at least two different car insurance providers due to troublesome driving records.texas vehicle

So what do the rate hikes look like?

According to the most recent report, the total rate hike will amount to 5.6 percent more than what those insured by TAIPA are currently paying. When breaking the increase down further, it becomes clear that the overall percentage hike is the direct result of an increase for bodily injury liability coverage, as well as an increase for property damage liability coverage. These two increases are 6.4 and 5.3 percent, respectively.

Other subcategories will remain unchanged for the time being.

Because the program is, for the most part, intended to provide coverage for those that cannot get coverage elsewhere, those insured by TAIPA are limited by a cap on the maximum amount of coverage they can get. The current caps are as follows:

  • $30.000 per person in bodily injury liability protection

  • $60,000 per accident in bodily injury liability protection

  • $25,000 in property damage

With the capped limits in coverage and increasing rates, it should come as no surprise that TAIPA has seen fewer applications in the past few years. The hope is that more drivers will take a safer and more responsible approach on the road in order to avoid being stuck with high risk car insurance.

For those that still have, and will continue to have TAIPA for some time, the news isn’t all bad. The originally proposed rate hike was for more than 7 percent.

Why do I only qualify for high risk car insurance?

As mentioned, you have to have been rejected by two other car insurance companies in order to qualify for TAIPA. That means that every other car insurance provider must basically consider you to be too risky to insure.

Why were you given that label?

There’s no one single answer that could be given for that question. The reality is that people are classified as high risk drivers for various reasons. In most cases, those labeled as high risk drivers were convicted of one or more DUIs, been involved in some serious accidents, or found guilty of multiple driving infractions

dawn time in texas

Dawn time in the state of Texas.

What can I do to lose the high risk driver label?

While you may up end up paying more for your car insurance through TAIPA come October, not all is lost. Believe it or not, you will not be considered a high risk driver for the rest of your life. If you can show your car insurance company that you’ve made it a point to drive carefully and have gone accident and infraction free for a period of time, then you may fall back into the good graces of car insurance providers.

Once you’ve had the high risk driver label removed, it is important to continue to drive according to the law. By being a safer driver, you’ll be able to drop TAIPA and get cheap car insurance from one of your top local auto insurance providers.

Until then, you and other Texas drivers should be prepared for the October rate hike on your car insurance.

Image Credits: TXFBI & Chris Roberts

Greg Fowler

Greg Fowler

Managing Member of AutoInsureSavings LLC, Greg enjoys writing articles to help drivers save on anything related to automobiles. Travel and enjoying the outdoors are some of his hobbies. The best way to reach him is at his Twitter or Facebook Profile.

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