Commercial Auto Insurance in Texas

Texas is home to over 3.2 million small businesses, many of which rely on vehicles to keep their operations running smoothly. If you own a business in the state, you’ve probably considered commercial auto insurance. This type of coverage is essential because it can help your business navigate potential liabilities that may arise from vehicle-related incidents. Let’s break down the key aspects of commercial auto insurance in Texas, including why it's important and how you can find a policy that fits your needs.

What is commercial auto insurance?

Depending on what coverage you have, commercial auto insurance is a policy that can help pay for certain damages or injuries to you or someone else while you’re driving a business vehicle. This type of insurance can often go beyond personal auto insurance by addressing the unique risks faced by businesses that use vehicles for transportation, deliveries, or other business-related purposes. Commercial auto insurance may also be crucial for companies to stay compliant with state laws.

In Texas, having commercial auto insurance may help you avoid financial issues that may come from driving accidents. Depending on your policy, this insurance may cover medical expenses, property damage, and legal fees after your business vehicle is involved in a covered accident. To purchase a policy, you can contact an insurance agent who specializes in commercial coverage, like our agents at Infinity Insurance Agency, Inc. IIA can help you find a policy for your business that matches your needs and budget.  

Who needs commercial auto insurance in Texas?

Several types of businesses in Texas may need a commercial auto insurance policy. Here are some common examples:

• Trucking/transportation: Companies that transport goods or people may want insurance to help cover their vehicles in case of an accident.
• Construction: Construction businesses often use vehicles to haul materials and tools, making coverage important to help avoid financial issues.  
• Contracting: Like construction, contractors may want insurance that can help cover the vehicles they use for daily operations.
• Delivery/courier services: Businesses that deliver products or documents may need this insurance to help pay for damages to their delivery vehicles.  
• Landscaping/lawncare: Vehicles used for landscaping services may benefit from commercial auto insurance, which can help businesses navigate accidents or vehicle damage.
• Plumbing: Plumbers often use cars for necessary transportation, which may be a great reason to have a commercial insurance policy.  
• Electrical: Like plumbers, electricians are commonly driving and making house calls. Commercial auto insurance can help cover their business vehicles in the event of a covered accident.  
• HVAC: Heating and cooling service providers may also want to insure their vehicles when used for work-related purposes like site visits.

Commercial auto insurance requirements in Texas

Every state in the U.S. has specific auto insurance requirements that drivers need to purchase before getting on the road. In Texas, the state minimum requirement for commercial auto insurance is:

• $30,000 for bodily injury liability per person
• $60,000 for bodily injury liability for more than one person
• $25,000 for property damage per accident

Though these minimum requirements are helpful, they may not meet your business’s coverage needs. Depending on your business operations and risk exposure, you might want to consider additional coverage or purchasing higher liability limits.  

IIA coverage options for businesses in Texas

Every business is unique, which also means that your insurance policy may need a combination of coverages. At IIA, we offer a variety of coverage options, including:

• Liability coverage: This can help pay for bodily injury and vehicle damage to another driver’s vehicle if you’re at fault.  
• General liability coverage: This coverage may pay for damages or injuries sustained by non-employees at your business facility or caused by your business. This insurance can also help pay for medical and legal fees.  
• Collision coverage: This can help cover damage to your vehicle after an accident, regardless of fault.
• Comprehensive coverage: This coverage may help pay for damages to your vehicle from non-collision incidents, such as theft or vandalism.
• Uninsured/underinsured motorist coverage: This can help cover damage to your vehicle or injuries you sustain from a driver who doesn’t have or lacks sufficient insurance.

How much does commercial auto insurance cost in Texas?

The cost of commercial auto insurance can vary widely based on several factors. Here are some key influences on pricing:

• Type of business: Different industries have varying risk levels, which may impact insurance costs.
• Vehicle: Certain vehicles, like heavy-duty trucks or EVs, may cost more to insure.  
• Driving records: The driving history of you and your employees may also be considered. A clean record may help lower your rates.
• Coverage amounts: Choosing higher coverage limits or purchasing additional coverage may increase your premium.
• Location: Where you’re located in the state, like whether your business is in an urban or rural area, may impact your insurance rates.  

Finding cheap commercial auto insurance can be difficult to locate, which is why insurance providers may have discounts available to you. Discounts, like paying your premium in full or bundling multiple vehicles, can help you reduce costs for your business.