Paying for Texas car insurance: TAIPA, financing, refunds

The sources cover how a premium gets paid.

The Texas Automobile Insurance Plan Association (TAIPA) states that applicants apply by having an insurance agent complete an application.¹ TAIPA also states that six-month policies are not available and only annual policies are offered.²

The Texas Insurance Code says the finance charge is computed on the balance of the premiums due after subtracting any down payment made under the premium finance agreement.³

The Transportation Code says that to avoid suspension after a crash by depositing security and filing proof, the certificate must be for a policy with a period of at least six months whose premium for the whole period is paid in full.⁴

If a policy is cancelled, the Insurance Code says the insurer must refund unearned premium on a cancelled personal auto policy not later than the 15th business day⁵ after the effective date of cancellation or termination.