Insurance in Texas
What is commercial auto insurance?
All vehicles driven on public roads in Texas generally have to be insured, and commercially registered vehicles normally need commercial auto insurance. Most businesses that own vehicles should be prepared to purchase one of these insurance policies.
Commercial auto insurance is specifically designed for vehicles that businesses own and/or use. Policies are available for single vehicles, or fleets of vehicles.
What Texas businesses need to carry business auto insurance?
Texas state law requires most businesses that own vehicles to carry business auto insurance. Businesses also usually need a form of commercial insurance for vehicles that are used but not owned.
A business auto policy must come with at least the state-mandated minimum amounts of coverage. In Texas, these are:
- Injury Liability Coverage of $30,000/person
- Injury Liability Coverage of $60,000/accident
- Property Damage Liability Coverage of $25,000/accident
Many businesses choose to purchase more coverage than what’s minimally required, for accident claims can greatly exceed these amounts.
Policies are available for cars, limousines, passenger vans, cargo vans, box trucks, tow trucks, tractor trailers, and virtually every other type of registered motor vehicle.
What protections are available through business auto insurance policies?
The protections that business auto insurance policies offer can vary somewhat, but most policies make a variety of common coverages available:
- Personal Injury Protection: May cover injuries to people who are in company-owned vehicles
- Bodily Injury Liability Coverage: May cover injuries to people who aren’t in company-owned vehicles
- Collision Coverage: May cover damage to work vehicles that occurs during an accident involving two or more vehicles
- Comprehensive Coverage: May cover damage to work vehicles that occurs during incidents other than accidents
- Property Damage Liability Coverage: May cover damage caused to other vehicles and other parties’ property
- Underinsured and Uninsured Motorist Coverage: May cover accidents caused by improperly insured drivers
Personal injury protection is commonly abbreviated as PIP.
What is hired and non-owned business auto insurance?
Hired and non-owned business auto insurance generally provides specialized protection for businesses that use vehicles they don’t own. Businesses might purchase this insurance if they have employees drive employee-owned or rented vehicles. The coverage normally provides only liability protection.
For example, pizzerias might use hired and non-owned coverage so that they have liability protection when delivery drivers are making deliveries. A moving company might use the coverage to get liability protection if they rent trucks for moving jobs.
An insurance agent who specializes in business auto policies can help businesses determine whether hired and non-owned coverage is suitable for them, or if a different type of business auto policy should be purchased.
How many vehicles do businesses need to get commercial fleet insurance?
Commercial fleeting insurance is readily available for businesses that own at least five vehicles, although that number can be different for some policies. Any business that has multiple vehicles should speak with a knowledgeable insurance agent who can explore fleet insurance options.
What benefits does commercial fleet insurance offer?
Commercial fleet insurance usually comes with the same coverages as non-fleet business auto policies. Fleet insurance policies tend to have higher limits that cover all vehicles within a fleet, however, and some coverage terms might be adjusted.
The main advantages of commercial fleet insurance are convenience and cost. Managing insurance policies and claims for multiple vehicles is simpler when everything can be handled within a single policy. Most fleet policies have premiums that are much lower than what insuring each vehicle separately would be.
How can businesses get commercial auto insurance?
For help insuring commercial vehicles in Texas, contact the independent insurance agents at Atzenhoffer Insurance. Our agents are well-versed in commercial auto insurance policies, and we can help you choose the best available policy for your business.
Let us do the work of comparing prices for you!