Commercial auto insurance is crucial for many Texas vehicles. State laws mandate minimum commercial auto liability insurance coverage for companies using vehicles to conduct business.
Liability insurance may help cover bodily injury and property damage that you or your employees cause to other people while operating a business vehicle. This policy pays only up to its dollar limits.
Depending on the nature of the business and the type of vehicles used, additional coverage may be advisable or required by lenders if the cars are financed or leased. Commercial auto insurance policies can be tailored to suit the specific needs of a business, including higher liability limits, comprehensive coverage, collision coverage and coverage for specialized equipment.
Your agent can help you understand how Texas laws may apply to your organization and help you get compliant commercial auto insurance coverage.
Understanding Commercial Auto Insurance
Commercial auto insurance coverage differs from personal auto insurance and is tailored to meet the unique needs of businesses. Commercial auto insurance may be appropriate for the following:
- Business owners with commercial vehicles, including those used for transporting goods, equipment or employees
- Individuals using personal vehicles for business purposes beyond commuting, including traveling between clients or carrying business equipment
- Professionals requiring specialized vehicles, such as semis, may also be subject to federal liability regulations
- Fleet operators, regardless of size, need commercial auto insurance to protect their investment and liability
Factors Influencing Commercial Auto Insurance Cost
Commercial auto insurance premiums vary based on numerous factors. Insurers set rates using information about a company and its vehicles, including the following:
- The vehicle’s value
- The company’s claims history
- The company’s location
- Employees’ driving records
- Coverage and deductibles included with the policy
Your agent can help you estimate commercial auto insurance costs accurately.
Selecting the Right Commercial Auto Policy
When choosing a commercial auto policy, consider the specific needs of your business. It’s not just about finding the cheapest option; purchasing adequate protection against your company’s unique risks is crucial. Consulting with insurance professionals can provide valuable insights into the type and extent of coverage that’s best for your business.
How to Get Commercial Auto Insurance in Texas
Understanding the need for commercial auto insurance and the various types available is crucial for many business owners and professionals. The right policy can protect your business assets and provide peace of mind.
Contact The Valleys Insurance Brokers LLC in Austin, Texas, to start comparing commercial auto insurance quotes.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.