Reader’s Question:

I’m Howie from Beaumont, Texas. What happens if I can´t find a car insurance company that will sell me car insurance?

Sara

Beaumont, Texas

Good question, Howie. If a car insurance company in Beaumont TX declines to sell you coverage, keep looking. Companies use several different methods to determine your risk. Some companies may still be willing to insure you, even though other companies have already turned you down. You might want to look for an independent car insurance agent. These independent agents usually represent multiple companies and can help you save time since you can find out about several companies with one call, rather than calling each company individually.
If you’re still unable to look for coverage, you can buy a policy from the Texas Auto Insurance Plan Association (TAIPA). TAIPA is a special risk pool that provides coverage for drivers who are unable to find car insurance companies willing to insure them in the standard market. TAIPA´s premium rates are usually high sometimes as much as double a standard car insurance policy.

A TAIPA policy will satisfy the state´s minimum coverage requirements. You may also purchase a personal injury coverage that will pay you and your passenger´s medical costs, up to the policy´s limits, regardless of who is at fault for an accident. You may also purchase uninsured motorist protection that pays for the damages caused by a driver who doesn´t have insurance. However, TAIPA doesn’t issue other types of coverage, such as comprehensive or collision coverage. In addition, you must sign an affidavit stating that you have been denied auto coverage from two insurers within the last six months to be eligible for TAIPA. You must be a Texas resident and have a valid driver´s license. For more information and complete details, you can contact TAIPA.