TEXAS COMMERCIAL AUTO INSURANCE
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Texas Commercial Auto Insurance: What Is It Exactly?
It is important to consider a few factors before deciding on purchasing a commercial auto insurance in Texas:
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How many vehicles are being insured
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How are these vehicles used for business
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What kinds of vehicles they are
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Who drives these vehicles
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Who owns the vehicles
In other words, if you own business-use only vehicles, chances are only a commercial auto policy will provide proper coverage for your needs. However, if you use your personal car for both business and personal activities, or if you have employees who also use their personal vehicles for your business and their own personal affairs, that is when things become a bit complicated.
Let’s make an example to clarify the differences better: if you run a pizza shop and own three delivery vehicles that you allow your drivers or employees to drive for business and delivery purposes only, you would most likely need a Texas commercial auto insurance policy to cover the multiple drivers and business-use-only vehicles. However, if you're a self-employed contractor or technician who uses his or her own car to make house calls and business errands, certain personal liability policies might provide sufficient coverage with no further need for a commercial auto insurance.
Typically speaking, if the following applies to a Texas business, a commercial auto insurance policy will be required:
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If the business is primarily involved in transportation of people or products (taxis, delivery trucks, etc).
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If the company has multiple drivers who drive more than one business-use only vehicle
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If the vehicles used have particular equipment strictly for business use, that cannot be removed from the vehicle (ie tow truck)
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If the business or owners want to insure the employees who either use their own personal vehicles for business runs for the company, or drive company vehicles for business purposes.
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If the business or the owner prefers a liability coverage higher than maximum amounts provided by personal auto insurance policies.
We highly advise you to give us a call or send us an online message before deciding how much coverage you need. Our experienced agents can help you decide on the most appropriate coverage based in part on the following factors:
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Who owns the vehicle(s)
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Weight of the vehicle(s)
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Usage of the vehicle(s)
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Liability limits requirements
Texas law requires a minimum liability coverage from all insurance policies, (what is often referred to as 30/60/25 in the fine prints). This mandatory minimum requirement basically means every vehicle you or your business own should be covered at least for the following amounts:
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$30,000 bodily injury coverage for one person in a single accident
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$60,000 bodily injury coverage total per accident
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$25,000 property damage coverage per accident
Risking lapsing your commercial auto policy in Texas is a huge mistake, as it exposes the business and owners to severe financial risks, suspension of your driver's license, invalidation of your business-related vehicle registrations. Furthermore, a repeat violation for a second insurance lapse in your Texas commercial auto insurance policy will result in your business vehicles to be impounded for 180 days, at an impoundment fee of $15 per vehicle, per day. To make matters worse and to persuade business owners to NEVER let their business auto insurance lapse, reinstatement of registration and driver’s license after such incidents will require reinstatement fees of $175 to $350 per vehicle after you can prove current minimum liability coverage for them.
Get up to four separate rate quotes for Texas commercial auto insurance using Select Love Insurance Agency's online quote form in just a few minutes. One of our agents will personally handle each and every quote request, thus, the information you receive using our online auto insurance quote form is far more accurate than just some preliminary and inaccurate quote rate calculator available on most other auto insurance quote or comparison websites. With us, you only have to fill out the short Texas commercial auto insurance form once, and get the most accurate and lowest business auto insurance rates available in Texas market from vetted and reputable Texas auto insurers.
Texas Commercial Auto Insurance: How Much Coverage Is Enough?
Texas Commercial Auto Insurance is defined as an auto insurance policy that covers physical damages and liability for amounts, situations, and usage not covered by a personal auto policy. As obvious as this may appear on its face, the difference between a regular (personal) auto insurance policy, and a commercial auto policy, and when consumers have to use which, is very important. Commercial auto insurance in Texas, otherwise known as Texas fleet insurance, Texas commercial vehicle insurance, Texas commercial car insurance, or Texas business auto insurance covers a variety of vehicles used in the course of conducting business. Read on below to find out more about Texas commercial auto insurance, or just give us a call and we’ll arrange for one of our agents to explain everything you need to know as soon as possible.
Texas Business Auto Insurance: Get An Online Quote
Texas Commercial Auto Insurance: Who Needs It?
Texas Commercial Auto Insurance: TX Financial Responsibility Law
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Texas Commercial Truck Insurance: What Is Covered?
Most policies offer separate limits for bodily injury and property damage situations. However, CSL or Combined Single Limit Coverage has one fixed amount for all kinds of claims and damages regardless of their type.
CSL covers any and all damages regardless of type up to one singular total limit set per each policy.
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CSL coverage is basically a combination of all the coverage limits so that the insured parties can get the most complete liability coverage possible; it simply pays for:
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personal injuries
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accident damages
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personal property damages
Combined
Single Limit
(CSL)
Coverage
Pays For
Covers
Uninsured (UM) & Underinsured Motorist (UIM) Coverage II. Bodily Injury Type
The policyholder, family members, passengers in the insured’s car, and others driving that car with the insured’s permission. All insurance companies in Texas must offer UM and UIM coverage by law. However, if consumers are not interested to receive this coverage, they must reject it in writing.
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Bodily injury UM/UIM pays for medical bills, pain and suffering, lost wages, permanent disfigurement, and permanent or partial disability. This kind of coverage has no deductible.
UM / UIM
Motorist
Coverage
II
Pays For
Covers
Uninsured (UM) & Underinsured Motorist (UIM) Coverage I. Property Damage Type
In Texas, there is always an automatic $250 deductible fee, which means the insured on this coverage must pay the first $250 of all expenses first before the insurance company will begin to pay their share.
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Insured’s expenses arising from an accident caused by an uninsured motorist or a motorist without enough insurance coverage, as well as those caused by a hit-and-run driver
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Personal property that was damaged in the insured car
UM / UIM
Motorist
Coverage
I
Pays For
Covers
Personal Injury Protection (PIP) is similar to medical coverage. Minimum coverage legally required by law in Texas is $2,500 in PIP, however, consumers can buy more coverage. If PIP coverage is not desired, consumers must reject it in writing.
The insured, family members, passengers in the insured’s car, and others driving the insured’s vehicle with consent and permission.
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80% of lost income and the cost of hiring a caregiver for an injured person in an auto accident.
PIP
Coverage
Pays For
Covers
Often covers medical expenses for driver and passengers in your vehicle, arising out of a covered accident regardless of who is at fault.
Policyholder, their family members, as well as passengers in policyholder’s car, regardless of who caused the accident.
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The insured’s own medical and funeral bills resulted from auto accidents, including accidents involving a pedestrian or cyclist.
Medical
Coverage
Pays For
Covers
Typically required by dealers and lenders as long as owners still owe payments on the car.
Comprehensive coverage policy won’t pay for an auto theft unless it is officially reported to relevant police departments. Furthermore, payouts are limited to the car’s actual cash value, minus the deductible
Cost of replacing/repairing insured car for damages by:
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Any event other than a collision
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Rental car expenses or other temporary transportation if the insured vehicle is stolen.
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Theft
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Fire
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Vandalism
Comprehensive
Coverage
Pays For
Covers
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Hail
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Falling Objects
Offers coverage for damages to your vehicle when it hits or is hit by other vehicles or objects.
The insured, family members, passengers in the insured’s car, and others driving the insured’s vehicle with consent and permission
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Cost of repairing or replacing the insured’s car after an accident, paying out only the amount of your car’s actual cash value (market value of your exact year and model without damages), minus the deductible
Collision
Coverage
Pays For
Covers
Simply pays for third parties’ expenses and damages up to the policy’s dollar limits, in an accident the policyholder or someone covered by the policy has caused.
Policyholder/family members defined as anyone living in his or her home related to policyholder by blood, marriage, or adoption. This includes spouse, children, in-laws, adopted children, & foster children. Other drivers driving the policyholder’s car with permission. Family members attending school away from home. Possibly, spouses living elsewhere during a marital separation
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Attorney fees in case of a lawsuit
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Bail up to $250 if driver is arrested following an accident
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Car rental expenses for other drivers
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Medical expenses, funeral costs, lost wages, & workers compensation
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Punitive damages awarded to third parties by a court
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Vehicle collision repair or replacement costs
Basic
Liability
Coverage
Pays For
Covers