The Texas Department of Insurance (TDI) said in a bulletin this month that it has approved private passenger and commercial auto rate increases for the Texas Automobile Insurance Plan Association (TAIPA), the state’s residual market for auto insurance.
Private passenger auto rates will increase by 3.9%, and commercial auto rates will go up 1.7%. The changes go into effect on November 1, 2025, for new and renewal business.
The TAIPA is a nonprofit corporation that provides automobile liability insurance for applicants who have been rejected by at least two Texas-authorized insurers. TAIPA is composed of all insurers authorized by TDI to write automobile liability coverage in the state.
TAIPA rate filings are subject to approval by the commissioner and it may not file rates more than once every 12 months.
TAIPA provides only minimum limits of liability, which are currently $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident). Physical damage coverage is not available.
An Insurance company’s quota ratio is based on its voluntary market writings compared to the total statewide voluntary writings. The number of drivers assigned to TAIPA rose to 1,960 in 2024, up from 1,768 the year prior.
| Coverage | Private passenger auto | Commercial auto |
| Bodily injury liability | 5.0% | 0.0% |
| Property damage liability | 3.2% | 4.0% |
| Personal injury protection | -5.0% | 4.2% |
| Uninsured motorists bodily injury | 4.8% | 1.0% |
| Uninsured motorists property damage | 4.9% | 5.0% |
| Overall average | 3.9% | 1.7% |
Topics Trends Carriers Texas Auto Pricing Trends
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