Do I need commercial auto insurance in Texas?

If you’re a Hispanic entrepreneur running a small business in Texas, you may wonder whether you need commercial auto insurance. Whether you’re taking your truck to a work site, delivering goods, or driving your food truck, you may not realize that personal auto insurance isn’t enough to cover your vehicle. 

That’s why Agencia de Seguros de Accesso, LLC (A Abana) is here to help small business owners like you find affordable insurance options. Our focus is on working with our customers to find custom policies for their unique business needs. 

Let’s dive into what commercial auto insurance is, who needs it, and how the right policy can help you plan for a brighter financial future for your business and family. 

What is commercial auto insurance? 

Commercial auto insurance is a type of coverage that helps offset the high financial costs that arise when your business or commercial vehicle is involved in an accident, theft, or other covered events.  

A commercial vehicle is one that is used for business purposes, for example: delivering goods, carrying equipment to job sites, driving to a landscaping site, etc.  

The key difference between commercial auto insurance and personal auto insurance is that they provide coverage depending on how you use your vehicle. If you use a car for business (communing to work doesn’t count as commercial use), you most likely need commercial auto insurance.   

The state of Texas has different requirements for specific vehicle types and businesses. However, liability insurance is required for all vehicles. This requirement is known as 30/60/25 coverage.  

This means that in Texas, a vehicle must have a minimum insurance coverage of: 

• $30,000 for bodily injury or death to another person 
• $60,000 for bodily injury or death to two or more people per accident 
• $25,000 coverage for damage to another person’s property per accident 

Commercial vehicles are also required to have: 

• PIP (Personal Injury Protection) coverage, unless you reject the coverage in writing. 

How much coverage you need depends on your business vehicle size, type, weight, and what it’s used for. 

If you’re looking for commercial auto insurance, but aren’t sure how much coverage you need, our auto insurance agents in Texas are ready to answer your questions. 

Who needs commercial auto insurance in Texas? 

If you have a business vehicle, you need commercial auto insurance. Here are some of the most common ways your car may be considered a business vehicle: 

• If you deliver materials, food, or other goods for customers 
• If you transport equipment or drive to a work site. This includes contractors, landscapers, painters, roofers, HVAC technicians, plumbers, electricians, etc. 
• If your employees drive your company’s vehicle 
• If you regularly use your personal vehicle for business purposes. Examples of this include a mechanic driving to a client’s home, a real estate agent driving to show properties, or an entrepreneur driving to vendor or customer locations. 
• If you have business signage or wraps on your vehicle. A business car wrap is a vinyl cover on your vehicle advertising your commercial services. Some insurance companies consider this "commercial use." 
• If you tow trailers or equipment. This may include construction contractors, roofers, etc. 
• If you drive to transport passengers. Not all insurance carriers offer policies to businesses that offer cab or rideshare services, so check with your local insurance agency to learn your options. 
• If you use a vehicle registered to your business. You need commercial auto insurance in order to register your business vehicle with the Department of Motor Vehicles. 

What happens if you don’t have the right insurance? 

Personal auto insurance policies often exclude coverage for vehicles used for commercial purposes. This means that if you’re involved in an accident while using your personal vehicle for work, your personal auto insurance may not help pay for the damages.  

You may be liable for damages to the other person, including auto repair costs, legal fees, and medical expenses if you are found to be at fault for an accident. 

Additionally, drivers who violate insurance requirements may be liable for fines and citations, according to Texas law. These types of traffic violations may affect an otherwise clean driving record and may result in more expensive insurance premiums.  

As you can see, it’s important to carry the appropriate insurance coverage whenever driving your car for work. These costs can add up and could even bankrupt a small business. 

If you aren’t sure whether you have the right coverage, an A Abana insurance agent in Texas can help answer your questions. 

Common myths about commercial auto insurance 

Many people assume that their personal auto insurance policy is enough to cover work-related accidents. Let’s look at some of these myths: 

• “My personal auto insurance will cover work use.”  

While this is a commonly held belief, it’s not true. For example, if a driver contractor gets in an accident while driving his truck, he may have to pay for damages and legal fees out of pocket. His personal auto insurance policy may not be enough. 

• “I only use my truck for work sometimes.” 

Even if you only use your personal vehicle for work sometimes, your insurance company will consider it as business use. Personal policies may not cover you in case of a work-related accident. 

• “Commercial auto insurance is too expensive.” 

There are many affordable and flexible payment options for business owners. Also, having the right insurance is a great way you may be able to prevent bigger financial losses in the future. 

How commercial auto insurance can save you money 

Commercial auto insurance helps business owners save on major car repairs, damage fees, medical costs, and other expenses when a covered accident or event happens.  

Some insurance providers may also lower rates over time for drivers with good driving records or a long-time customer history. Additionally, business owners with other policies, such as property or liability insurance, and with more than one vehicle, may be eligible for discounts. 

Get a free commercial auto insurance quote 
Building your business takes a lot of hard work and safeguarding your financial future means getting the right coverage. If driving your vehicle is a part of your business, you likely need commercial auto insurance.  

A Abana's team of Spanish bilingual agents can help you find the coverage you need. Call 214-764-8868 or get a free estimate online with A Abana. 

 Disclaimer:​ 

This material is for general informational purposes only. Products, services, and discounts referenced herein are not available in all states or in all companies. All statements are subject to the terms, exclusions, and conditions of the applicable policy. In all instances, current policy contract language prevails. Coverage is subject to individual policyholders meeting the insurer's underwriting qualifications and state availability. Other terms, conditions, and exclusions may apply.