Rates for Texas Automobile Insurance Plan Set to Fall in 2011

HOUSTON, Nov. 9, 2010 /PRNewswire/ -- State regulators announced last week that 2011 rates for high-risk drivers insured through the Texas Automobile Insurance Plan Association (TAIPA) will decrease overall by 7.6 percent from 2010 rates. The reduction comes despite the fact that the state's minimum bodily injury liability limits will officially increase on Jan. 1, 2011.

In light of the upcoming change in state-required coverage and recent reports that premiums have been rising nationwide, OnlineAutoInsurance.com recommends that consumers take the opportunity to ensure that they are still getting adequate protection for an optimal rate.

Like assigned-risk mechanisms in place in most states, the TAIPA exists for high-risk drivers who are looking for auto insurance in Texas but are unable to secure a policy through regular means due to certain aspects of their driver profiles. Texas regulators recommend that consumers shop extensively before giving up on the standard market. But prospective policyholders who have done so but have been denied coverage by two insurers can apply for a TAIPA policy through certain licensed agents. If accepted, the driver will be placed with an insurer at TAIPA-set rates, which are based on loss costs provided by the Insurance Services Office Inc. and are generally higher than those that can be found on the standard market.

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In 2010, TAIPA rates saw a 2.2-percent increase from 2009 rates.

The piece of news that will be affecting a broader section of the driving population, though, is the impending rise in minimum levels of coverage.

In 2007, legislators amended the Lone Star State's financial responsibility laws by establishing staggered increases in the minimum amounts of protection. Before the change, the state required motorists to carry a minimum of $20,000 protection for bodily injury liability per person, $40,000 per accident and $25,000 for property damage liability — commonly expressed as 20/40/25. But the amendment held that those minimums would rise to 25/50/25 in 2008 and 30/60/25 as of January 2011.

According to the state department, policyholders "won't need to take any action unless contacted by their insurance company."

Consumers who want to learn more about Texas coverage issues or to make sure that they are getting the best possible rate scan go to http://www.onlineautoinsurance.com/texas/ where visitors can access resource pages and use the free quote-comparison generator.

SOURCE Online Auto Insurance, LLC