Commercial auto insurance in Texas

Any Texas company that uses vehicles for business purposes must insure them appropriately.

Commercial auto insurance covers vehicles owned by your business. If your business-owned vehicle was involved in an accident, it would help pay for medical bills, legal fees, and other related expenses.

Any vehicles you own solely for work purposes must be covered by a commercial auto insurance policy, whether you own a landscaping pickup, a food truck, or a fleet of pickup trucks.

A business auto policy is more extensive than a standard commercial auto insurance policy. It covers all vehicles used by a business, whether they’re owned by the company, leased, or owned by employees.

If you’re using your own vehicle for work-specific activities, your personal auto policy wouldn’t cover you in the case of an accident. That’s why many small business owners purchase hired and non-owned auto insurance (HNOA). This policy covers accidents involving personal, leased, and rented vehicles used for work purposes.

Your personal auto insurance policy covers you while driving to and from work, but not while making deliveries, picking up supplies, and other work-specific uses.

For example, if you or an employee gets into an accident while driving a personal car for a work errand or traveling to a job site, your HNOA coverage would help pay for any claims or lawsuits against your business.

It's worth noting that this type of insurance would not cover damage to the vehicle used by your business.

Without commercial auto insurance coverage, your business could be in legal and financial jeopardy. In Texas, all vehicles are required to carry auto liability insurance.

If one of your commercial vehicles is at fault in an accident, you could face an expensive lawsuit or settlement. You’d likely have to pay for damage to the other vehicle or property, medical costs, lost wages, pain and suffering, plus other related expenses.

Additionally, you could face severe penalties for not owning commercial vehicle insurance. If you are cited for not having insurance as a first time offender, you may receive a fine of up to $350 and see an increase in your auto insurance rates.

For a repeat offense, the fine can increase up to $1,000 and you could have your driver's license suspended.

All vehicles in Texas are required to have a minimum amount of auto liability insurance coverage, whether they’re for personal or business use. These liability limits are:

• $30,000 in bodily injury liability or death liability per person
• $60,000 in bodily injury liability or death liability per accident
• $25,000 in property damage per accident

Your insurance agency might recommend higher liability coverage limits based on the types of vehicles you own and how they’re used.

In addition, insurance companies are required by state law to provide personal injury protection (PIP) insurance in commercial policies. This add-on coverage helps provide medical payments coverage after a car accident, regardless of who was at fault. However, it's important to note that you can sign a waiver to decline this coverage from your auto insurance company if you don't want it.

Semi-trucks, utility and cargo trailers, and other vehicles with a Texas Department of Transportation serial number may have additional liability coverage requirements, depending on the vehicle type and how it’s used.

You can see if your business needs to meet these additional requirements by checking your USDOT number or docket number with the Federal Motor Carrier Safety Administration (FMCSA).

Insureon makes it easy for Texas business owners to get affordable commercial auto insurance. Complete Insureon’s easy online application today to compare insurance rates from top-rated U.S. carriers and car insurance companies. You can also consult with an insurance agent on your business insurance needs.

Once you find the right type of coverage for your small business, you can get a certificate of insurance in less than 24 hours.