Commercial Auto Insurance in Texas

Texas minimum auto insurance requirements

Texas requires at least $30,000 for injury to one person, $60,000 for injuries per collision, and $25,000 for property damage. That's known as 30/60/25, and it comes from Texas Transportation Code §601.072. The Texas Department of Insurance and the Office of Public Insurance Counsel use the same numbers. For most business pickups, vans and service trucks, that's the same floor a family car has.

Two more Texas rules matter on a commercial auto policy. Personal injury protection (PIP) and uninsured/underinsured motorist (UM/UIM) coverage must be included unless the named insured rejects them in writing (TDI commercial auto checklist; Texas Insurance Code chapter 1952). If you rejected them years ago, ask us to check the file.

When the minimum is different: heavier trucks

Intrastate motor carriers running vehicles with a gross weight rating or registered weight over 26,000 pounds, and some others, register with the Texas Department of Motor Vehicles and carry at least $500,000. The insurer files the proof (Form E) with TxDMV. That's a different filing from a small-business pickup. If that's you, see our dump truck insurance page. If a heavy truck crosses state lines, federal rules apply, so call us.

When a contract sets the limit

General contractors, master service agreements and public entities often ask for higher limits than the state minimum, plus additional insured and waiver of subrogation wording. Read the insurance exhibit before you buy, or send it to us first. More on that on our contractor insurance and oilfield service insurance pages.

Do I need commercial auto insurance for my business?

If a vehicle is titled to your business, driven by employees, or regularly used for work, you likely need commercial auto. The Texas Department of Insurance notes most personal auto policies don't cover paid delivery or a company-owned car you drive regularly. A personal policy may not cover a work-use claim, so check before you rely on it.

Practical signs you've crossed the line:

• The truck or van is titled or financed in the business name.
• Employees drive it, even part of the time.
• It hauls tools or equipment, or pulls a trailer for work.
• It has your company name on the doors.
• A customer or general contractor wants a certificate showing business auto coverage.

Your personal carrier may also ask, "Is this vehicle used for business?" Answer it honestly. A wrong answer is how claims get disputed.

What commercial auto covers

• Liability. Injuries and property damage you cause to others with a covered vehicle.
• Physical damage. Comprehensive and collision for your own trucks, vans and trailers.
• Medical payments or PIP. Medical bills for the driver and passengers, depending on the policy.
• Uninsured/underinsured motorist. When the other driver has no insurance or not enough.
• Trailers. Attached and detached trailers are treated differently, so list every trailer.
• Tools and equipment in the truck. Usually not covered by auto. Tools and equipment need inland marine coverage. See the equipment section of our contractor insurance page.

Hired and non-owned auto (HNOA)

Hired and non-owned auto (HNOA) covers your business's liability when employees drive their own cars or rented vehicles for work, such as bank runs, supply pickups or job-site visits. It doesn't repair the employee's car. It protects the business if it gets sued over that accident.

It comes up most for offices, shops and trades whose staff drive personal cars on errands. The employee's own auto policy is still the first thing that responds for their car, and TDI notes personal policies may not cover a car someone uses regularly but doesn't own. This section is general information so you know the term when a contract or carrier uses it.

Trailers, upfits and service bodies

Schedule every trailer, and tell us the value of service bodies, racks, ladders, toolboxes and other upfits so physical damage is set at the real number. Report the radius you actually drive and where each vehicle is parked at night. Those answers drive the rate, and getting them right keeps a claim from turning into an argument.

Who's driving: drivers, records and new hires

Carriers review the driving record of everyone who drives for you, so add drivers before they get behind the wheel, not after. When you hire someone who will drive, send us their name, date of birth and license number first.

Have a short written policy on personal errands in company vehicles and on who may drive them. It helps at claim time and at renewal.

What affects commercial auto cost in Texas

• Drivers' records and ages
• Vehicle type, weight and value
• Radius of operation and garaging ZIP code
• Use: service calls versus hauling
• Limits and deductibles you choose
• Claims history and how long the business has been insured

Hill Country trades often drive long rural routes between Canyon Lake, New Braunfels, San Antonio and jobs along I-35 and I-10, so radius and the driver list matter as much as the vehicle.

What to send for a fast quote

• Vehicle list with VINs
• Driver list: name, date of birth, license number
• Garaging addresses and radius
• How each vehicle is used
• Current declarations page
• Three to five years of loss runs
• Any contract insurance exhibit

Text it to 830-305-4080 or email it. Related pages: Texas commercial insurance, business owners policy, general liability vs workers' comp, vacuum and septic trucks, New Braunfels business insurance and our coverage list.

Commercial auto FAQ