Is the Texas Automobile Insurance Plan (TAIPA) Cheap?

Last Updated on December 22, 2025

The Texas Automobile Insurance Plan Association (TAIPA) is Texas’ “last-resort” option for drivers who can’t get auto liability insurance in the regular market. It helps eligible high-risk drivers buy the minimum coverage needed to legally drive.

So, is TAIPA cheap? In most cases, no. TAIPA is designed for people insurers won’t voluntarily cover, so premiums are typically higher than standard policies. But for many drivers, it’s still the most realistic way to stay insured, avoid a lapse, and keep driving legally.

Key Takeaways

• TAIPA is Texas’ last-resort “assigned risk” program for drivers who can’t get auto liability insurance in the regular market.
• TAIPA usually isn’t cheap—premiums are often higher than standard policies because it’s designed for high-risk drivers.
• TAIPA mainly provides the state-required liability coverage (30/60/25), with optional add-ons like PIP and uninsured/underinsured motorist coverage.
• The best way to lower costs is to avoid new violations, keep continuous coverage, and re-shop the regular market at every renewal to “graduate” out of TAIPA.

What Is TAIPA?

TAIPA is a state-mandated “assigned risk” program that places qualifying high-risk drivers with participating insurance companies. If you’ve been shopping for high-risk auto insurance and keep getting turned down (or quoted prices you simply can’t pay), TAIPA is the backstop designed for that situation.

Texas law requires drivers to carry minimum liability coverage (commonly called 30/60/25) to drive legally. See Texas car insurance requirements for the details on what the state expects you to carry.

Drivers usually end up looking at TAIPA after they’ve been denied coverage in the regular market, which can happen if you’ve had multiple violations, serious tickets, at-fault accidents, or other red flags that make insurers consider you too risky. (Related: can car insurance companies deny coverage?)

Who Qualifies for TAIPA?

TAIPA isn’t available to everyone. In general, it’s intended for drivers who have tried and failed to buy insurance normally. TAIPA eligibility typically includes:

• A valid driver’s license (or you’re requesting an SR-22 in order to obtain/restore driving privileges)
• You’re a Texas resident or your vehicle is registered in Texas
• You’ve been rejected for auto insurance by at least two companies within the last 60 days

If you meet the requirements, you apply through a licensed insurance agent, and your application enters the assigned risk auto insurance pool. TAIPA then assigns your policy to a participating company.

What Coverage Does TAIPA Provide?

TAIPA is primarily for liability coverage—the protection that pays for injuries or damage you cause to others. That includes bodily injury liability and property damage liability.

TAIPA policies are designed to meet Texas’ required minimum limits (30/60/25), which generally means:

• $30,000 bodily injury liability per person
• $60,000 bodily injury liability per accident
• $25,000 property damage liability per accident

You may also be able to add certain protections, depending on the application and what you accept or reject, such as personal injury protection (PIP) and uninsured/underinsured motorist (UM/UIM) coverage.

Is TAIPA Car Insurance Cheap?

Not usually. TAIPA exists because the voluntary market doesn’t want the risk—so prices are generally higher than what a safe driver would pay with standard coverage. Think of TAIPA as “available” coverage, not “bargain” coverage.

That said, TAIPA can still be the most practical option if you’re stuck choosing between an unaffordable quote and going uninsured. If you’re at that point, this guide can help you map out your next steps: I can’t afford car insurance anymore—what should I do?

Also keep in mind that TAIPA rates can change over time. If you’re currently insured through TAIPA, it’s smart to review your renewal and re-shop the market periodically, even if you were declined before.

How TAIPA Works (And Who Your Insurance Company Is)

When you’re approved, TAIPA assigns you to a participating insurer to service your policy. You’ll deal with that insurer for billing, ID cards, and claims—similar to having a regular policy with a traditional carrier from the standard insurance marketplace.

Your assigned company can change over time, and you don’t get to pick which insurer you’re placed with. The goal is to distribute high-risk policies across the Texas market, rather than concentrating them in one place. If you’re still shopping the regular market, compare options from multiple Texas auto insurance companies first—TAIPA is best viewed as the fallback when those options don’t work.

TAIPA Payment Options

TAIPA policies are typically written for a one-year term, and you may have more than one way to pay. Common options include:

• Full annual payment: Pay the full premium upfront (often the simplest way to avoid installment fees).
• Advance premium payment: Pay a required deposit up front, then pay the remaining balance by the date listed on your bill.
• Installment payments: Pay a deposit up front, then pay monthly installments (usually with installment charges added).
• Premium finance company: Some drivers use a financing arrangement (your agent can explain if this is available and how it works).

If you’re trying to minimize total cost, paying in full is often cheaper than monthly. Here’s a deeper breakdown: is it better to pay car insurance in full or monthly?

How to Pay the Least for TAIPA (And Exit TAIPA Faster)

You can’t “hack” TAIPA into being truly cheap, but you can take steps to keep your premium as low as possible and position yourself to move back into the normal market.

• Keep a clean record from today forward. New violations and crashes are one of the fastest ways to keep premiums high. Learn how tickets affect pricing here: do traffic violations affect insurance premiums?
• Re-shop before every renewal. “High-risk” isn’t forever. As tickets and accidents age off, you may qualify for non-standard insurance (still pricey, but often less restrictive than TAIPA) and then eventually standard rates.
• Give it time—then graduate out. If you stay insured and avoid new problems, you can often move from high-risk to standard insurance as your record improves.

FAQs on TAIPA Car Insurance Costs

Final Word: Is TAIPA Worth It?

If you’re a Texas driver who can’t get insured elsewhere, TAIPA can be a lifeline. It’s not “cheap,” but it can keep you legal, prevent a costly coverage lapse, and give you a path back to traditional insurance over time.