Your business is essential; protect it with Commercial Auto Insurance in Texas.
There are many different types of insurance policies out there, commercial auto insurance being one of them. Not everyone needs commercial auto insurance, but holding these policies can keep you safe for those driving commercial vehicles.
We’re here to answer all your questions if you’re curious about commercial auto insurance in Texas, what it covers, and whether it’s a legal requirement in this state.
What Is Commercial Auto Insurance?
Commercial auto insurance helps cover property damage, collision, comprehensive physical damage, bodily injury, and damages from uninsured motorists for those driving cars or trucks for business reasons.
The policy covers the vehicle rather than the person, so there has to be a separate policy from your personal car insurance.
What Does Commercial Auto Insurance Cover?
Commercial auto insurance is similar to personal auto insurance in terms of what the policy can cover. Each policy will be different, but here’s what commercial auto insurance will generally cover.
Commercial auto insurance should always cover collisions. Whether someone hits you or you hit someone else, this part of your policy will cover the damages to the vehicle.
Collision coverage covers all types of collisions. Whether it’s something small like a fender bender going very slow or something more severe, if there’s damage from a collision, commercial auto insurance will help cover these expenses.
Bodily Injury Liability
Accidents happen; if you’re lucky, no one will end up hurt in a vehicle collision. Unfortunately, that doesn’t always happen; injury and death can occur. Bodily injury liability coverage will help handle lawsuits from injury and death in a commercial vehicle accident.
In the event of an accident that causes bodily injury, the commercial auto insurance policy with bodily injury liability can help with those expenses. From initial medical bills to ongoing doctor appointments due to the damage from the accident, it’s best to have this coverage on your commercial auto insurance policy.
While most people carry car insurance, not everyone has it, or their policy isn’t currently active. In the event that you’re in a collision with an uninsured motorist and they’re at fault, this part of your commercial auto insurance in Texas will help pay for the property damage and injuries.
Hopefully, if you or your employee driving the commercial vehicle is in an accident, the other person involved will have their own car insurance. You’ll never know until the accident, so having a policy that helps cover uninsured drivers can be a lifesaver in these situations.
Medical Payments and Personal Injury
Medical bills are expensive, and even a simple visit to the emergency room can be costly. Regardless of fault, this type of coverage will help cover any medical costs that the driver and passengers require if they’re in an accident in a vehicle used for business reasons.
Property Damage Liability
Property damage liability coverage will help cover the damage from a commercial vehicle to another person or a business. A policy with property damage liability can help with all legal fees in a legal defense if you need that.
Comprehensive coverage helps protect against damage to a commercial car or truck from various incidents. Incidents could be theft, fire, vandalism, tree branches, or anything of the like that isn’t caused by another car.
Who Can Benefit From Commercial Auto InsuranceNot everyone needs or can benefit from getting a commercial auto insurance policy. Commercial auto insurance is required for any car, truck, or vehicle that you register as a commercial vehicle.
These vehicles will have a commercial license plate to differentiate them from personal vehicles. These can be moving company trucks, a car for a marketing associate, etc. Essentially, anytime a vehicle is used for business reasons, you need to have a commercial auto insurance policy.
While you might think you can get away without one of these policies because your personal car insurance will cover you in case of an accident in a commercial vehicle, you can’t. Personal policies don’t cover the same things for commercial vehicles as they do for personal ones, which can leave the business owner at risk of lawsuits.
Business owners who have commercial vehicles are the main people who will benefit from this type of car insurance. Those who work for the business and are driving the vehicles are also going to reap the benefits of these policies since they’re the ones actually behind the wheel.
Personal Auto Insurance vs. Commercial Auto Insurance
There are a lot of similarities between personal and commercial car insurance. They’re both there to help you in the event of a car accident, property damage, theft, and more. Both types of insurance will cover similar risks, and filing claims are pretty much the same.
Personal and commercial insurance will require you to pay whatever your deductible is before you can start getting payouts.
The main difference between these two policies is that commercial auto insurance considers the different types of vehicles and vehicle patterns that come with business operations. An excellent example of this is to think of a dump truck.
These are much larger than most personal vehicles and, therefore, if they crash, they can cause more damage than a smaller car. With a high-quality commercial auto insurance policy, business owners can be protected in the event of different incidents without stressing about how they’ll handle the situation.
Cost of Commercial Auto Insurance
How much your commercial auto insurance will cost will vary. The factors that contribute to how much or how little your commercial auto insurance will be are the type of commercial vehicle you’re driving, your driving history, the size of the business, and more.
Generally speaking, commercial auto insurance ranges from $700 to $1,200 per vehicle. The best thing you can do is speak with an insurance agent about your options and find the best and most cost-effective policy for you.
We’re here to help you understand everything there is to know about commercial auto insurance. Here are some frequently asked questions that might help you better understand this type of insurance.
Does Texas law require commercial auto insurance?
Yes. Under Texas law, all commercial vehicle drivers have to have commercial auto insurance. Sometimes, this is referred to as liability coverage. It will cover different amounts that can vary depending on the type of vehicle and your driving history.
Do rideshare drivers need commercial auto insurance?
For the most part, your personal car insurance should be enough coverage if you’re working for a rideshare company like Uber or Lyft. These companies also provide driver coverage, but it’s not technically commercial auto insurance. Now, personal auto insurance policies are offering a rideshare policy that might work better for you.
Can you deduct commercial auto insurance from your taxes?
Yes, you can! Commercial auto insurance is a tax-deductible expense. Since you only need that type of insurance because of your job, it’s considered a business expense. Be sure to bring copies of your pay statements to show whoever does your taxes so you can write it off as a business expense during tax season.
Are business auto insurance and commercial auto insurance policies the same thing?
No, business and commercial auto insurance aren’t the same things. While they both are applicable to businesses, they are different. Commercial auto insurance covers cars or other vehicles for specific jobs, whereas business auto insurance is for vehicles used for regular traffic.
As a business owner with cars, trucks, or other vehicles you use for business, getting a commercial auto insurance policy needs to be high on your priority list.
Commercial auto insurance in Texas will help protect you in the event of collisions, property damage, bodily injury, and more when someone is driving a commercial vehicle. Each commercial auto insurance policy is a little different, so you’ll want to make sure you know what your policy will cover before you decide.
If you’re in the market for commercial auto insurance, our insurance experts can help you find the best coverage for the best deal. Call us today to get a quote on your commercial auto insurance in Texas so you can have more peace of mind when you or your employees are on the road.