Texas Automobile Insurance Plan’s 4.8% Commercial Auto Rate Hike Approved

The Texas Department of Insurance (TDI) has approved the request by the Texas Automobile Insurance Plan Association (TAIPA) for a 4.8% increase in commercial auto rates, with an effective date of March 1, 2021.

TAIPA members include all insurers authorized to write automobile liability insurance in Texas. A nonprofit corporation, TAIPA provides automobile liability insurance for applicants who have been rejected by at least two Texas-authorized insurers, according to TDI.

TAIPA filed its rates for commercial auto insurance (filing number S683300) on Sept. 14. No comments on the filing were received by TDI.

TAIPA relied on year-to-year changes in the commercial vehicle liability loss costs filed with TDI by Insurance Services Office Inc. (ISO) to develop its rates. Based on the 2019 ISO loss cost changes, TAIPA is proposing base rate changes by coverage with no changes to any territory or class rating factors.

TAIPA requested the following changes to the base rates by coverage, which resulted in an overall premium weighted increase of 4.8%:

Source: TDI