Commercial Auto Insurance: What Texas Businesses Need to Know

Commercial Auto Insurance Overview

Commercial auto insurance is vital for Texas businesses utilizing vehicles for work-related activities. This insurance offers robust coverage for vehicles owned, leased, or operated by a business, safeguarding against potential liabilities and damages during business operations.

Key Coverage Types

• Liability Coverage: Protects against bodily injury and property damage to others if your vehicle is involved in an accident.

• Collision Coverage: Covers damages to your vehicle from a collision, regardless of fault.

• Comprehensive Coverage: Shields against non-collision incidents such as theft, vandalism, or natural disasters.

• Medical Payments Coverage: Covers medical expenses for you and your passengers following an accident.

• Uninsured/Underinsured Motorist Coverage: Ensures protection if involved in an accident with a driver lacking adequate insurance.

Legal Requirements in Texas

Texas mandates businesses to maintain a minimum level of liability insurance for their commercial vehicles. The minimum liability limits are:

• $30,000 for bodily injury per person

• $60,000 for total bodily injury per accident

• $25,000 for property damage

Many businesses choose higher limits to secure better protection against potential claims.

Factors Influencing Premiums

• Type of Vehicle: Different vehicles present varying risk levels and costs.

• Business Type: The nature of your business and vehicle usage impacts rates.

• Driving Records: Employees' driving histories affect insurance costs.

• Location: Areas with higher accident rates may increase premiums.

Choosing the Right Policy

When selecting a commercial auto insurance policy, consider the following:

• Assess your business needs and vehicle types.

• Compare quotes from various insurance providers.

• Review coverage options and limits for adequate protection.

• Consult with an insurance agent specializing in commercial auto insurance.

Conclusion

Understanding commercial auto insurance is essential for Texas businesses relying on vehicles for operations. By choosing appropriate coverage and staying informed about legal requirements, businesses can protect their assets and ensure compliance with state laws.

Ready to protect your business?

Call us at 281-912-3338 or request a commercial auto insurance quote online.