Get Texas commercial auto insurance quotes, cost & coverage fast. TX business auto helps pay for damaged vehicles, property, bodily injury and medical expenses if you or an employee is found at fault for an accident.
TX Business Auto Insurance
It's pretty obvious that a company that has a fleet of vehicles and uses them to transport goods or perform services should have Texas commercial auto insurance. However, if you own a small company or are a sole proprietor and don't have commercial drivers, it can be hard to determine if this type of insurance is right for you. Your personal auto insurance may not cover you or any of your employees in the event of an accident, so it's essential to find out immediately if Texas commercial auto insurance is necessary.
Business auto insurance is a policy that covers any TX vehicles that are used for your business, as well as the people who drive those vehicles. It provides financial protection for you and any employees that drive for reasons related to your business if an accident or some other type of incident occurs.
While business vehicle insurance has some similarities to personal auto policies, there are notable differences in eligibility, coverages, exclusions, definitions & limits. Commercial car insurance is needed for certain type of vehicles (think heavy vehicles like tractors, dump trucks etc.). This can include cars used for business purposes as well as box trucks, food trucks, service utility trucks, etc.
Does My Business Need Texas Commercial Auto Insurance?
The best way to determine whether or not you need Texas commercial car insurance is to speak to an insurance agent or someone else who has ample knowledge of the topic. However, if the business you operate uses vehicles on a regular basis, it's a pretty safe bet that you are going to need it, no matter what size your business is.
Some professions that require Texas commercial auto insurance include the following:
- Home heating oil companies
- Delivery companies (food, packages, etc.)
- Livery drivers
- Tow truck operators
If your profession isn't listed above, don't assume that you don't need TX business auto insurance. As mentioned, if your business uses vehicles, there's a pretty good chance that you are going to need it. Also you might be contractually required to have it of a customer requires it as part of a deal.
What Does Texas Commercial Auto Insurance Cover?
You might already have some familiarity with some of the different types of business car insurance since many polices share names with personal vehicle insurance policies. Some of the most commonly used coverages in policies include:
- Collision. This covers any damages that a vehicle may receive if it is involved in an accident.
- Comprehensive. This policy covers any losses that occur if your vehicle becomes damaged in an accident that does not involve a collision, such as fire, flooding, hail, damage from a fallen tree, theft, or vandalism.
- Liability. This policy covers bodily injuries that others may sustain as a result of a vehicle that is used for your company. It also covers any expenses to replace or repair someone else's property should a business vehicle cause an accident. It is the most commonly needed - and required - Texas commercial auto insurance coverage.
- Uninsured / Underinsured Motorist. With this coverage, any injuries that are sustained or damages to your vehicle will be covered if an accident occurs with someone who does not have insurance or who does not have enough coverage to pay for the damages or injuries.
Whatever policy you choose, you should consider extending it so that it will cover any employees who may drive in order to complete tasks that are related to your TX business. For example, if you own a restaurant that delivers food, it's a wise idea to have your delivery drivers covered.
What Texas Commercial Auto Insurance Doesn't Cover
Know as exclusions, which elimiate risks for the insurer, Texas commercial auto insurance typically does not cover:
- Intentionally damage caused by the business owner or employees.
- Workers compensation.
- Employer's liability.
- Contractual liability.
- Amounts beyond the policy limits and auto value.
How Much Texas Commercial Auto Insurance Coverage Do I Need?
It can be tricky to figure out how much vehicle insurance you will need for your business. An agent that specializes in this type of insurance will be able to help you determine an appropriate amount for your specific needs. It's important to be aware that at the bare minimum, you have to make sure that you have enough coverage to comply with any insurance requirements that are set forth by Texas.
The following factors can be used to help you figure out how much coverage your business will need:
- Your business' size
- How much your assets are worth
- The amount of vehicles your company uses
- The number of people who drive for your business
- How much you will be able to afford to pay out of pocket in the event that an accident does occur
How Much Does Texas Commercial Auto Insurance Cost?
How much does Texas commercial auto insurance cost? The average price of business vehicle insurance varied widely based on certain factors. The premiums vary depending on the company and their underwriting rules, and it depends on the coverages and deductible selected. Following are some of the main factors that go into the price of a policy based on the business:
- Geographical location - The more dangerous your location is the higher premiums you will pay as there is a higher probability for claims. If you live in a highly populated urban area accidents and insurance claims happen more often and rate are higher.
- Previous insurance coverage - Continual auto insurance history can help get you a better rate.
- Vehicle types - Purchase price, theft rate, cost of repairs, accident rate and safety tests weigh heavily in car insurance cost.
- Vehicle use - A vehicle used to haul hazardous waste more of a risk than the van used to drive to a worksite.
- Miles driven annually - The less you drive, the less risk you have of being in an accident.
- Business credit history - The better credit you have, the lower your rates. Most insurers look at credit and weight it heavily.
- Coverages - The more coverage you choose with higher limits, the more it will cost you since the insurer is taking on additional risk.
- Deductibles - The deductible is your out of pocket cost before your policy kick in. Lower deductible = higher premium, and higher deductible = lower premium.
And the following factors have an effect on the price based on the acutal drivers:
- Age - Typically drivers under 25 pay more because statistically shown to be inexperienced behind the wheel, easily distracted and to crash more often. They are on of the riskiest category of drivers to insure.
- Gender - Data shows males are more likely to crash, hence men's premiums are higher.
- Marital status - Married people have been found to be less of a risk to insurers than singles, including divorced or widowed drivers.
- Years of driving experience - Inexperienced drivers pose more risk. That is why under 25 have some of the highest rates.
- Driving record - Drivers with a clean driving record qualify for better rates and can be eligible for a safe driver discount.
- Claims history - More claims = more premium. Insurers actually count frequency (how many claims in a time frame) more than severity (how large the claim was).
What Are Texas's Financial Responsibility Requirements?
According to the TX Department Of Insurance:
Texas law requires people who drive in Texas to pay for the accidents they cause. Most drivers do this by buying auto liability insurance. Liability insurance pays to repair or replace the other driver's car and pays other people's medical expenses when you’re at fault in an accident.
If you buy insurance to meet the state's financial responsibility law, you must buy at least the minimum amount. The current minimum liability limits are $30,000 for each injured person, up to a total of $60,000 per accident, and $25,000 for property damage per accident. This basic coverage is called 30/60/25 coverage.
Because of car prices and the high cost of medical care, the minimum amounts might not be enough to pay all of the other driver's costs if you're at fault in an accident. Other drivers could sue you to collect the difference. Consider buying more than the minimum limits to protect yourself financially.
Liability insurance doesn't pay to repair or replace your car or to treat your injuries. Other types of coverages – such as personal injury protection, uninsured or underinsured motorist, medical payments, collision, and comprehensive – can help you pay for these expenses.
When you buy an TX auto policy, your insurance company will send you a proof-of-insurance card. You must show the card when you:
- are asked for it by a police officer
- have an accident
- register your car or renew its registration
- get or renew your driver's license
- have your car inspected
Further Reading On Business Auto Insurance
Read through helpful commercial auto insurance for small business to help you better understand polices you own or are buying.
- Business Auto Coverage Form
- Bobtail And Deadhead Coverage
- Bobtail And Physical Damage Insurance
- Bobtail Insurance vs Non-Trucking Liability
- Commercial Auto Insurance Hired And Non-Owned
- Commercial Auto Insurance vs Personal Cost
TX Business Auto Insurance Quotes
Request a Texas Commercial Auto Insurance quote in Abilene, Allen, Amarillo, Arlington, Austin, Baytown, Beaumont, Brownsville, Bryan, Carrollton, College Station, Corpus Christi, Dallas, Denton, Edinburg, El Paso, Flower Mound, Fort Worth, Frisco, Garland, Grand Prairie, Houston, Irving, Killeen, Laredo, League City, Lewisville, Longview, Lubbock, McAllen, McKinney, Mesquite, Midland, Mission, Missouri City, Odessa, Pasadena, Pearland, Pharr, Plano, Richardson, Round Rock, San Angelo, San Antonio, Sugar Land, Temple, The Woodlands, Tyler, Waco, Wichita Falls and all other cities in TX.
Texas Insurance Rules And Regulations
In Texas, there are certain regulations governing insurance that you should be aware of. We will be discussing some of the personal and business insurance types that are mandated by law, as well as insurance types that are not necessarily mandated by law but may be useful. For example, almost every business out there carries commercial liability insurance even though there is no law stipulating that general liability must be carried by a business in order to operate within the state. We'll be looking closely at the regulations and these types of insurance in TX.
Texas Business Insurance
When it comes to business insurance, there is one type of insurance that is most common above all others - general liability insurance. This is sometimes called commercial liability insurance, and it provides payments for those businesses that have legal trouble as the result of something happening on their premises. There are many different things that general liability covers, and since businesses do not have total control over what can happen on their property, most business carry it.
However, there are also certain types of business insurance that are required by law. However Texas is a lot less stringent when it comes to insurance than most of the states out there. In fact, the only type of insurance that you can apply to business that is regulated by law is the state-mandated insurance limits that are required for drivers. Most states require Workers Comp, and most of them also require commercial auto insurance for commercial vehicles. However, Texas does not have this requirement.
TX Personal Insurance
There are a couple of different types of insurance that will be discussing in this section. Many states require that commercial vehicles carry commercial auto insurance, but in Texas, it is simply required that all drivers carry $30,000 for bodily injury liability for a single person and $60,000 per accident as well as $25,000 for property damage. This is sufficient for both personal insurance and commercial insurance.
As for life insurance, they are regulated by certain state statutes in Texas and cover things like a 30 day grace period for payments and protection of death claim from bankruptcy. These are the only two types of life insurance regulations that are present within the state of Texas. Texas does not provide a free look mandate like many of the states out there.
If you are looking for state specific Commercial Auto Insurance quotes, costs and information: California Commercial Auto Insurance, Colorado Commercial Auto Insurance, Delaware Commercial Auto Insurance,Florida Commercial Auto Insurance, Illinois Commercial Auto Insurance, Kentucky Commercial Auto Insurance, New Jersey Commercial Auto Insurance, New York Commercial Auto Insurance, Oregon Commercial Auto Insurance, Pennsylvania Commercial Auto Insurance, Texas Commercial Auto Insurance, Washington Commercial Auto Insurance.