Find Cheap Auto Insurance Quotes in Texas
According to the Texas Motor Vehicle Safety Responsibility Act, all drivers in Texas need to be financially responsible for operating their motor vehicles, which means having the minimum auto insurance coverage required by the state.
High-risk drivers might not be able to buy coverage from typical insurance companies. Texas drivers who can certify that they have been rejected for car insurance by two companies within 60 days are eligible for coverage through the Texas Automobile Insurance Plan Association (TAIPA).
What is the Texas Automobile Insurance Plan Association (TAIPA)?
The Texas Automobile Insurance Plan Association was established in 1952 to provide high-risk drivers, who may have trouble getting coverage in the voluntary auto insurance market, with insurance so they’re able to meet the state requirement and drive legally.
Once a motorist's application has been accepted by the TAIPA, they are placed into a residual pool, which also includes all of the insurance companies that are licensed to write automobile insurance in Texas (with the exception of county mutual companies that qualify for exemption). Each member company has to accept a certain number of drivers every year from the residual pool in order to meet an annual quota, whichis equal to the member company's share of the Texas auto insurance market.
For example, State Farm Mutual had 12% of the Texas auto insurance market share in 2022, which means that 13.35% of the high-risk drivers in the residual pool were assigned to State Farm that year.
A motorist in the pool has a good chance of being assigned to a large, national insurance company. If a member company fails to report data to the TAIPA, the consequence is a larger number of drivers being assigned to them from the residual pool.
Regardless of which carrier a motorist is assigned to by the TAIPA, the coverage that will be offered is universally the same. The TAIPA offers very basic coverage, but it is more expensive than identical policies in the voluntary market. Because of this, the number of drivers in TAIPA's residual pool has decreased over time, as motorists have been able to find cheaper auto insurance with Texas companies that specialize in insuring high-risk drivers.
In 2021, there were only 1,381 new applications for insurance through the TAIPA. This suggests that most high-risk drivers were able to find reasonable policies within the voluntary market.
TAIPA's policy coverage and costs
TAIPA applicants must certify that they have been rejected for coverage by two auto insurers in the past 60 days to be eligible for coverage. They must also be a Texas resident and have a valid driver's license. Motorists in the military are eligible for coverage if they are stationed in Texas or are a Texas resident stationed in another state.
Once assigned to a designated insurer, the driver is entitled to coverage from the insurer for three consecutive years — at the same rates. If a TAIPA motorist is unable to find coverage in the voluntary market after the three-year period is over, they can reapply for insurance with the TAIPA and be assigned to a new insurer.
Coverage and limits
The TAIPA only offers the minimum coverage required by law. The coverage is bare bones but expensive, so motorists are not getting much bang for their buck.
The Texas Motor Vehicle Safety Responsibility Act sets the minimum coverage at $30,000 for bodily injury liability per person in an accident, $60,000 for bodily injury liability total per accident and $25,000 for property damage liability.
Designated insurers are required to write TAIPA policies for these minimum limits. Higher liability limits and optional comprehensive and collision coverage are not available through the TAIPA. Insured motorists do have the option of adding personal injury protection at a limit of $2,500 and uninsured/underinsured motorist coverage at the minimum limits of liability (30/60). Medical payment coverage is not included in personal injury protection.
Most insurance companies penalize insured customers with raised premiums for at-fault accidents and traffic tickets, but the TAIPA also penalizes insured customers for non-fault accidents and traffic violations in accordance with Rule 9. For specific guidelines about surcharges for accidents and traffic tickets, consult TAIPA's FAQs.
Rates and premiums
To get a quote for TAIPA's rates, it's best to contact a producer in your area. Only annual policies are offered through the TAIPA, so the policy must be renewed each year. The TAIPA has three premium payment options:
- Full annual premium payment: Pay the full annual premium (no deposit) upon assignment to a designated insurer through the TAIPA.
- Advance premium payment: Put down 25% and then pay the balance within 30 days of the billing notice date from the designated insurer.
- Eight-payment installation option: Put down 20% of the total annual payment and then pay the remaining balance in eight installments to the designated insurer.
How to get insurance through the TAIPA
To apply for insurance through the TAIPA, drivers should call their toll-free number, (866) 321-9154, to be put in touch with a local producer.
Applications can also be submitted online, mailed to the TAIPA or hand delivered. Instructions are located on TAIPA’s website.
A sample application form for private passenger autos is also available online.
For questions about the TAIPA, drivers can call the toll-free number above or consult the online FAQ section of their website.