Commercial Auto Insurance in Texas
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Many businesses depend on their fleet of vehicles to conduct their trade. An auto accident could present significant costs, in terms of damage to the vehicles and medical or legal fees in the event of injury. Commercial auto coverage protects business owners from these expenses.
If you have a semi-truck, fleet of pickup trucks, or even cars used regularly for business purposes, taking out a Texas commercial auto policy is essential. Commercial insurance premiums are usually higher than those for domestic purposes, accounting for the additional mileage and risk associated with trade use. Driving without appropriate insurance in Texas can result in a fine, which increases with each offense.
If your business owns any vehicles used for business purposes, you're required to have commercial auto insurance in Texas. Commercial auto insurance is also required to protect employees who use their personal vehicles while on the job.
Texas commercial auto insurance rules can be confusing, especially when it comes to personal vehicles. In general, the rules of thumb are:
Employees must also have personal insurance, which covers them for day-to-day use. Commercial coverage steps in if the employee was driving for work purposes, and the damages from the accident exceed the coverage of the personal policy.
Commercial auto insurance policies vary, but in general, they may cover:
Not all policies cover all those things. For example, to get coverage for weather damage and vandalism, you may need to look at a comprehensive policy. Many policies cover only third-party accidents, fire, and theft. The cost of the policy may vary significantly depending on what it covers.
Commercial auto policies protect your business in the event that you or one of your employees is involved in an accident while driving for work purposes. Some policies may also cover you if someone steals or vandalizes your fleet. The cost of medical expenses, repairs, and payouts for property damage can be significant, and paying them out of pocket could bankrupt many businesses.
Commercial auto insurance is a legal requirement in Texas, and companies can be fined if they're caught with vehicles on the road that don't have a valid policy.
The cost of commercial auto insurance coverage depends on the type of vehicle or vehicles you'd like to insure, the level of coverage you're looking for, the size of your fleet, and the purpose of the business-related trips you plan to make in those vehicles.
For example, a primarily office-based business that provides company cars for employees may pay less than a business that does house removals or has salespeople racking up hundreds of miles daily.
When you apply for commercial auto insurance, the provider considers the information you give them about your business and uses that to provide quotes for different types of coverage. You may wish to look at umbrella insurance in addition to your standard auto policy to provide an extra layer of coverage in the event you're faced with a claim that exceeds the liability coverage of your auto insurance. Umbrella cover is typically inexpensive and can be worthwhile for peace of mind.
Tivly is a trusted insurance marketplace that can help business owners find commercial auto insurance in Texas. If you're looking for commercial auto insurance, simply fill out our quote form to let us know your coverage needs. We'll connect you with top insurance providers to find coverage tailored specifically for you.
Reviewed By: Andrea McKinney, MBA, Licensed Agent