Texas commercial auto insurance is a requirement if you drive a vehicle primarily for business, or if you have a fleet of commercial vehicles. Learn what goes into calculating rates so you can find the best coverage.
What Is Texas Commercial Auto Insurance?
Commercial auto insurance is a type of insurance coverage that pays for damages to your commercial vehicles. It usually covers a vehicle that cannot be insured with a personal auto insurance policy. It may also be referred to as truck or fleet insurance and is a type of coverage that protects you and your employees if you’re in an accident when driving for work. It covers the following types of situations:
- Your employee hits a vehicle or pedestrian while driving a company car.
- You run off the side of the road and hit a tree.
- Your employee is in an accident and totals someone else’s vehicle.
- Your employee is hit head-on while driving for work, leading to expensive medical bills.
These are just a few examples of situations that can occur when you, or your employees, drive a commercial vehicle. It is important to evaluate your insurance needs.
Insurance Requirements in Texas
The minimum level of insurance required in Texas is:
- $30000 bodily injury liability per person.
- $60000 bodily injury liability per accident.
- $25000 property damage per accident.
However, according to The Truth About Insurance, drivers with a commercial vehicle should consider additional coverage. The minimum coverage requirements only cover other drivers, which means they don’t provide you with any compensation if you are in an accident. Protect the value of your commercial vehicle and yourself by considering additional insurance.
How Much is Commercial Auto Insurance in Texas?
Your commercial insurance rates will vary, depending on many factors including:
- How many vehicles are in the commercial fleet.
- The type of vehicles.
- What features are equipped in each vehicle.
- The purpose of the business.
- Who is included in the policy.
- The level of coverage.
Commercial auto insurance is usually more expensive than personal insurance. This is because commercial vehicles are usually costlier to repair or replace. Additionally, commercial insurance policies will usually have multiple drivers.
Even the location of the business and where the vehicles are parked in Texas also make a difference in how much you can expect to pay. Some areas have higher theft rates or more traffic, which can mean a greater risk of accidents.
Who Needs Commercial Auto Insurance in Texas?
If you live in Texas and drive a vehicle for business purposes, then you may need commercial insurance. If you have a vehicle that you drive for business, it is unlikely that your personal insurance policy will cover you. In some cases, smaller, individual vehicles that are used for business may be eligible for coverage with your personal insurance policy.
Commercial auto insurance is slightly different from traditional insurance. You may need commercial auto insurance in Texas if:
- Your business owns, rents, or leases vehicles or trucks.
- You have employees who drive their own vehicles for business purposes.
- You have employees who drive a company car.
- You have employees who lease, rent, or own company vehicles.
Your company car may refer to any vehicle that you primarily drive for work. It does not necessarily have to be a commercial truck or van. According to Texas American Insurers, if you drive a company-owned car or a car exclusively used for business purposes, then you should buy commercial auto insurance.
Ensuring that you have enough commercial insurance coverage is important. If you cause an accident and don’t have enough coverage, a lawsuit could be so costly that it puts you out of business.
What Does Commercial Auto Insurance Cover?
Most commercial insurance policies include the following:
- Bodily injury: Bodily injury is a requirement in Texas and covers any medical costs that you cause to someone else in an accident.
- Property damage liability: Property damage liability is similar to bodily injury, except that it covers the damages that you cause in an accident.
- Collision coverage: Collision coverage covers your damages if you are in an accident, regardless of who is at fault for the accident.
- Comprehensive coverage: Comprehensive coverage covers your damages that are not related to an accident, like theft or vandalism.
- Medical coverage: Medical coverage is a separate insurance policy that covers your medical bills if they aren’t covered under a different policy already.
- Uninsured/underinsured coverage: Uninsured/underinsured coverage is a policy that will cover your bills if you’re in an accident with a driver who doesn’t have insurance.
Only bodily injury and property damage liability are a requirement in Texas. However, it is important to consider the other types of insurance. If you are in an accident, you could end up paying out-of-pocket for medical bills and repairs if you don’t have enough coverage.
The Best Commercial Insurance Providers in Texas
If you live in Texas and need commercial insurance, you have a lot of options. Here are a few insurance companies to consider:
- Progressive.
- Chubb.
- Travelers.
- Liberty Mutual.
- Texas Mutual Insurance Co.
- CNA.
- Zurich.
- Progressive.
- Berkshire Hathaway.
- Farmers Insurance.
Shopping around is a good way to find affordable commercial insurance rates. Request price quotes from multiple providers and then compare them. You can also evaluate how good a commercial insurance company is by paying attention to customer ratings by Moody’s, S&P Rating, NAIC Complaint Index, and J.D. Power. These ratings come from customer satisfaction based on pricing and claims.
You might be surprised at how much you can save just by shopping around and comparing rates. You can also shop around again when it is time to renew your policy.
Texas commercial auto insurance is important to consider for anyone with a commercial vehicle. Determine how much insurance you need and the type of coverage that fits your business needs.
Check this out if you need additional information, resources, or guidance on car insurance.
Sources:
Top Commercial Insurance Companies In Texas I thetruthaboutinsurance.com
Texas Commercial Auto Insurance I txam.com
What Is Commercial Auto Insurance? I caranddriver.com
Auto Insurance Rates in Fort Worth, Texas: What You Need to Know I caranddriver.com
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