The cost of commercial auto insurance in Texas depends on many factors, including how many vehicles are covered, what types of vehicles they are, how they are equipped, what they are used for, who will be driving, and desired coverage levels. Given that commercial auto insurance policies can cover a range of vehicles and situations, from individual cars owned by company employees to food trucks and fleets of snowplows, the best way to research costs is to request multiple quotes from commercial insurance companies. Several of the most popular national auto insurers are top sellers of commercial policies in Texas, including AIG, Progressive, Travelers, Liberty Mutual and Farmers.
Your personal car insurance generally won’t cover you if you use your vehicle for business in Texas. You’ll need a commercial policy. The same coverage options are available with both types of policies. You can choose from bodily injury liability and property damage liability, medical payments or personal injury protection, collision and comprehensive, and uninsured/underinsured motorist protection.
The only coverage required by Texas law is liability. Many states have special commercial liability minimums for all passenger carriers and light trucks. However, in Texas, passenger carriers that seat fewer than 16 people and trucks up to 26,000 pounds that travel only within Texas are treated the same as your personal auto. That means they need at least $30,000 in bodily injury liability coverage per person, up to a total of $60,000 per accident, and $25,000 in property damage liability coverage.
However, you should consider higher liability levels on your commercial policy. Insurance experts often recommend a $1 million total limit. This is because victims can make claims against your business assets if the driver of your business vehicle causes an accident. Without enough liability protection, a serious accident could hurt your company badly.
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