On January 16, 2008, the Commissioner of Insurance (Commissioner), in accordance with the statutory requirements of the Insurance Code Section 2151.207, issued Commissioner's Order No. 08-0037 relating to changes in the rates and the Texas Automobile Insurance Plan Association (TAIPA) Rules and Rating Manual (manual) for private passenger and commercial automobile insurance provided through TAIPA, the state's assigned risk plan. These changes are effective April 1, 2008. The changes reflect the new minimum financial responsibility limits of $25,000 per person and $50,000 per occurrence for bodily injury liability and $25,000 for property damage liability that are also effective April 1, 2008. Limits for coverage sold through TAIPA will also increase to $25,000 per person and $50,000 per occurrence for uninsured/underinsured bodily injury coverage and to $25,000 for uninsured/underinsured property damage coverage due to the new minimum financial responsibility limits.
The Commissioner ordered that the rates to be charged for private passenger automobile insurance provided through TAIPA, including the change due to the new minimum financial responsibility limits, be revised by +4.9 percent for bodily injury liability, by -4.6 percent for property damage liability, by -7.8 percent for personal injury protection, by +15.1 percent for uninsured/ underinsured motorist bodily injury coverage, and by +9.0 percent for uninsured/underinsured motorist property damage coverage. The overall change to the rates for private passenger automobile insurance provided through TAIPA is 0.0 percent.
The Commissioner ordered that the rates to be charged for commercial automobile insurance provided through TAIPA be revised to include a modified version of the Insurance Services Office, Inc. (ISO) class factors. The Commissioner also ordered changes to the TAIPA manual to reflect the conversion of the manual to ISO class factors. The rates to be charged for commercial automobile insurance provided through TAIPA were ordered to be revised due to the new minimum financial responsibility limits by +20.0 percent for bodily injury liability and by +4.0 percent for property damage liability. The rate for uninsured/underinsured motorist bodily injury coverage was revised to $27.00 while the rate for uninsured/underinsured property damage coverage was revised to $29.00. Rates for personal injury protection remain unchanged.
The revised rates, premiums, rating factors and instructions (machine letters) for companies utilizing EDP equipment to generate TAIPA private passenger and commercial automobile insurance rates for new and renewal business effective on or after April 1, 2008, are available for downloading at the Department's website: www.tdi.state.tx.us. Look for Commissioner's Bulletin No. B-0003-08 at the following Department of Insurance website link: http://www.tdi.state.tx.us/bulletins/index.html. Also available for downloading are the new TAIPA private passenger and commercial automobile rate pages (rate bulletin), similar in format to the rate pages that will soon appear in the TAIPA manual. These are available in Excel and PDF formats.
If you are unable to download the machine letters and rate bulletins, you may request a hard copy by contacting Linda Turner at 512-475-3017.
Other questions regarding private passenger or commercial automobile should be directed to Tammy Lara, Property and Casualty Actuarial Division, 512-475-3021.
Available for downloading:
TAIPA pages:
Private Passenger Auto Rate Bulletin in PDF
Private Passenger Auto Rate Bulletin in EXCEL
Private Passenger Auto Machine Letter in PDF
Private Passenger Auto Machine Letter in EXCEL
Commercial Auto Rate Bulletin in PDF
Commercial Auto Rate Bulletin in EXCEL