Do I pay a down payment when I apply for TAIPA in Texas?

Do I pay a down payment when I apply for TAIPA in Texas?

The Texas Automobile Insurance Plan Association (TAIPA) says a down payment goes with a TAIPA application in Texas. On its page for insureds, TAIPA says a person who wishes to apply for insurance through TAIPA sees an insurance agent to have the agent complete an application.¹ TAIPA says the producer then mails the completed, signed application to TAIPA within one business day, along with the down payment.¹ TAIPA words the step this way:

The producer then mails the completed, signed application to TAIPA within one business day, along with the down payment.

Do other Texas rules mention a down payment or full payment?

These rules are separate from the TAIPA application.

Situation	What the sources say
Premium finance agreement	The Texas Legislature says the agreement must contain the amount of any down payment and the principal balance, which is the difference between total premiums and the down payment.2
Filing after a crash with a security deposit	The Texas Legislature 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.3
SR-22A for that filing	The Texas Department of Public Safety says that, for a deposit-based reinstatement after a crash, an SR-22A must certify that the policy is pre-paid for at least six months.4

What the sources do not state

The sources used on this page do not give the amount or percentage of a TAIPA down payment, and they do not say whether any option exists to apply without one. They also do not say whether a premium finance agreement can be used with a TAIPA policy.

Next step

TAIPA publishes the application steps on its page for insureds. The site also has a filing lookup tool.