Commercial Auto Insurance Texas

Commercial Auto Insurance Texas 101

Texas has one of the most diverse economies in the United States, with its commercial operations ranging from working ranches to military bases. It’s the largest exporter of goods in the nation, often leaving many workers and half a million business owners traveling thousands of miles for transporting products. 

The road can be a dangerous workplace, and the personal auto policy usually doesn’t cover vehicles used for business as they’re prone to more liability than personal autos. That’s why these operators or owners need a commercial vehicle insurance policy to keep their workers, company cars, businesses, and finances safe. 

Here’s everything you need to know about commercial auto insurance in Texas. 

Commercial Auto Insurance Texas

What is Commercial Auto Insurance?

A commercial auto insurance policy protects your trucks, cars, vans, and other vehicles for physical damage and liability coverage, usually not covered by a personal auto policy.

It’s a type of business insurance that covers any vehicle, and it’s also known as commercial vehicle insurance and commercial car insurance. This insurance policy covers funds for any damages or bodily injury that you or your employees attained during operating hours using company vehicles up to a specific policy limit.

Texas commercial auto insurance can be customized to provide businesses the coverage they need, whether they own a single food truck or several contractor vans, helping you secure your business and bottom line.

What Does Commercial Auto Insurance in Texas Cover?

Like personal auto policies, commercial auto insurance offers similar coverage options to a business. However, there are other coverage options exclusive to an auto insurance commercial policy, including: 

  • Bodily Injury Liability Coverage – This insurance policy covers the fund for medical payments for bodily injury or death resulting from an accident where you are at fault. It also provides expenses for legal obligations or defense. 
  • Medical Payments or Personal Injury Protection– This usually covers the funds for the medical or hospital bills of the operator and passengers inside the vehicle getting injured after an incident, regardless of who’s at fault. 
  • Property Damage Liability Coverage – This provides you with the protection and adequate funds if your vehicle accidentally damages a third party’s property. It also gives funds for legal obligations or defense when the other person tries to sue you. 
  • Comprehensive Physical Damage Coverage – This provides adequate funds for an operator or business owner to pay for damages to replace a vehicle either from theft, vandalism, and natural disasters, including floods, storms, and fires. 
  • Collision Coverage – This insurance policy covers the expenses when your car gets damaged when it hits or gets hit by another vehicle or other objects. 
  • Uninsured Motorist Insurance – This covers the medical payments for the driver’s injuries or repair bills for property damage caused by an uninsured or reckless driver. 

Most commercial vehicle insurance policies are ‘named driver only,’ meaning only the operators listed on the policy are allowed to drive the covered auto. 

How Much Does Commercial Auto Insurance Cost in Texas?

Although the average costs for commercial auto insurance or commercial vehicle insurance in the United States range between $890 to $2,594 per year, several factors affect your Texas commercial auto insurance policy’s total cost. These include: 

  • Profession – Some industries have more risk than others resulting in heftier fees. For instance, a contractor that transports various tools to different construction sites daily can expect to pay more than an attorney that occasionally visits clients. 
  • Vehicle – The vehicle’s size and use can affect the rate as larger utility trucks will likely have a higher premium than small cargo vans. 
  • Driving history – Your business insurance provider will hold a motor vehicle report on all drivers with access to our commercial vehicles. Drivers with bad records such as accidents or violations can increase your rates. 
  • Location – It’s common to pay more for commercial auto insurance in larger cities in Texas, like Dallas, than smaller municipalities like Beaumont. 
  • Travel distance – The average distance that drivers routinely travel can influence your commercial auto insurance costs. For instance, a vehicle with a local route within San Antonio city has a lower risk than those with regional routes covering all of Texas. 

Although most businesses are encouraged to have commercial car insurance, many business owners are hesitant to get the insurance policies they need as the cost can quickly rack up. You can always compare quotes from different insurance companies to see which one offers the best rates, saving your business, workers, and investments. 

Texas Insurance Commercial Auto Requirements

Texas state law requires all business owners to provide commercial vehicle policies to have a minimum liability limit of $30,000 per individual involved, $60,000 per accident for bodily injury, and $25,000 for property damage.

The state also requires personal injury protection for insurance policies with liability coverage, but you can sign a waiver to decline this. It’s essential to choose limits that are best for your business on top of what the Texas state law requires because lacking adequate coverage for your specific risks can leave you responsible for costly repairs, debts, and lawsuits.

If you’re having a hard time choosing the best coverage options on commercial auto insurance for your business, you can always consult with a local insurance agent. They can help you grab the best deals, saving your business and bottom line. East Insurance Group offers commercial auto insurance in Austin, Houston, San Antonio, Dallas, Frisco, and all other cities in Texas.

Who Needs Commercial Auto Insurance in Texas?

There are some professions that need commercial auto insurance more than others, including but not limited to:

  • Landscapers
  • Electricians
  • Bakeries
  • Food trucks
  • Cleaning services
  • Contractors
  • Rideshare
  • Pizza deliveries
  • Consultants

Does Texas Require Commercial Auto Insurance?

Texas requires commercial auto insurance if you drive a vehicle for business purposes, or if you have a fleet of commercial vehicles

Is Commercial Auto Insurance More Expensive?

Typically, commercial auto insurance costs more than personal auto insurance because commercial insurance policies tend to have higher limits. 

What are the Documents Required for Commercial Vehicle Insurance?

Here are the documents you need to submit in case you need commercial vehicle insurance coverage:

  • RC of the vehicle and a photocopy
  • Filed and signed claim form
  • Driving license of the driver who was driving at the time of the accident
  • FIR in case of third party death or injury or property damage

Confused about commercial auto insurance in Texas, or do you need some help getting a quote for your business? Contact us today and get all the information you need fast and for free!