You are required to have commercial automobile insurance in Texas if you drive a car or truck primarily for business reasons or if your business owns a fleet of vehicles. Here are the five top companies providing commercial auto insurance in Texas, along with answers to questions you may have about getting solid coverage at a fair price.
- The 5 best commercial auto insurance companies in Texas
- What Is Texas commercial auto insurance?
- What does commercial auto insurance cover?
- How much commercial auto coverage do I need in Texas?
- How much does commercial auto insurance cost in Texas?
- How to find cheap commercial auto insurance in Texas?
- Should delivery drivers carry commercial auto insurance in Texas?
- Who needs commercial vehicle coverage in Texas?
The 5 best commercial auto insurance companies in Texas
We research more than 15 companies offering commercial auto insurance in Texas and here are our recommendations of the top 5 providers.
- CoverWallet: Best for comparing online quotes
- Progressive: Best all-around commercial auto insurer
- Geico: Best for insuring vehicles in different industries
- Liberty Mutual: Best for quick claims service
- State Farm: Best for bundled coverage
CoverWallet: Best for comparing online quotes
CoverWallet is a digital broker. They specialize in providing business insurance to small and midsize companies. They cover a wide range of business insurance policies, including commercial auto insurance.
They work with several leading commercial auto insurance companies such as Liberty Mutual and Nationwide. They can pull quotes from their partner companies for you to compare and select the best and cheapest one for you. Their quote experience is simple and fast. Within a few minutes, you will be able to compare several quotes in one place.
Another benefit of working with CoverWallet is that after buying a policy through them, you will be able to use the digital dashboard to manage all of your business insurance policies in one place. The dashboard also offers other great features such as downloading the certificate of insurance, filing a claim, and renewing a policy.
Progressive: Best all-around commercial auto insurer
Progressive has been offering auto insurance since 1937 and business-related policies for 50 years. The company offers not just a full range of commercial auto insurance products, it can also supply all the coverage your business needs. The company is known for being flexible, having great rates and providing first-class service.
Progressive offers the following kinds of commercial vehicle coverage:
- Commercial auto and truck insurance
- Tow, dump and food truck insurance.
Two types of Progressive policies cover specialized vehicles:
- Landscaper insurance
- Contractor insurance.
It also offers these business insurance policies, so you can bundle your coverage with Progressive:
- Business Owner Policies (BOPs)
- General liability insurance
- Workers compensation insurance
- Professional liability insurance.
Progressive offers many types of discounts, which could help you save on your commercial vehicle insurance and all your business related policies.
Tip: Progressive is a top provider of insurance for delivery drivers and people who participate in ride share programs. It covers gaps between your personal policy and what your company or service offers. It’s definitely something to look into if you provide these types of services.
Geico: Best for insuring vehicles in different industries
Geico is a highly reputable business auto insurance provider. It’s been in operation for more than 70 years. It is known for its fair pricing, solid service and extensive experience providing insurance to individuals and businesses. You can rely on their experienced claims professionals to get a damaged vehicle back up and running quickly, which could save you a lot in downtime if your car or truck is involved in an accident.
GEICO is able to provide commercial vehicle insurance on any size fleet, including coverage for all types of cars, trucks and specialized vehicles used by:
- Electricians, plumbers and heating and air conditioning professionals
- Carpenters, painters and other types of contractors
- Landscapers and plowing services
- Caterers, food truck operators and other types of food vendors
- Delivery and ride share services
- Other business types, including real estate and sales.
Geico is known for making it easy to:
- Add or remove vehicles from your policy
- Update the drivers covered
- Change coverage limits
- Bundle all your business insurance coverages together
- Report and track claims
- Access documents and services online.
Geico offers great flexibility in the coverage it offers, making it likely you’ll be able to find the commercial auto insurance — and complete business coverage — you need at a competitive price.
Liberty Mutual: Best for quick claims service
Liberty Mutual is another highly reputable commercial auto insurance provider for businesses in Texas. It’s able to cover everything from a single vehicle to a complete fleet, including specialized equipment.
The company has a dedicated team that looks out for risks that are unique to commercial vehicle drivers and helping to mitigate and protect against them. It also has a team that just handles commercial auto claims, which helps get vehicles back out on the road quickly after an incident occurs. The claims team uses proprietary tools and equipment that helps them quickly evaluate vehicle damage and medical claims. They also have an extensive team to manage legal issues and evaluate legal claims.
Liberty Mutual prides itself on being able to customize commercial vehicle coverage to specific industries, fleet types, usage and location in Texas. The company also has a network of repair centers located all over the state, which speeds the timing of repairs and ensures the quality of them.
If safety is important to you, Liberty Mutual could be the right commercial vehicle provider for you. They offer unique programs that can help you:
- Develop a fleet safety initiative
- Hire qualified and safe drivers
- Establish policies to prevent distracted driving and other unsafe practices
- Take advantage of telematics to look out for unsafe driving behaviors.
Taking advantage of Liberty Mutual’s safety programs could help reduce your company’s commercial auto exposure, encourage better driving practices and lower the risk of accidents.p These things will contribute to the well being of your employees and lower your commercial auto insurance costs over the long term.
Like the other providers on this list, Liberty Mutual offers a complete array of business insurance in addition to its commercial auto coverage.
State Farm: Best for bundled coverage
State Farm takes a unique approach to its business insurance coverage, offering bundles and coverages tailored to 300 plus different industries. If you decide to get your business policy through State Farm, it will include high quality business vehicle coverage tailored to your specific needs and risks.
State Farm has been recognized as a top provider of insurance to smaller businesses. The company has been in business since 1935. It’s known for its high level of service and quick claims process. Much like Liberty Mutual, it has a program to help businesses reduce their vehicle-related risks.
What you need to know about commercial auto insurance in Texas
Here are some answers to commonly asked questions about Texas commercial vehicle coverage.
What Is Texas commercial auto insurance?
It’s a specific type of coverage that pays for damage to vehicles used for business if they’re involved in an accident. It can also cover costs related to theft. Commercial auto insurance handles the following types of situations:
- An employee hits a vehicle or pedestrian while driving a company car
- You run off the road and hit a mailbox while heading to a business meeting
- Your employee is in an accident while driving for work, which results in high medical bills.
These are just a few scenarios that demonstrate the value of commercial vehicle insurance. Consult with a reputable insurance provider to understand the specific risks you face in your industry and where you do business in Texas.
What does commercial auto insurance cover?
Most commercial vehicle insurance policies include the following coverages:
- Bodily injury: This is required in Texas and covers any medical costs for anyone else involved in an accident that is caused by you or someone working for you.
- Property damage liability: This is similar to bodily injury coverage, except that it pays for property damage that you cause in an accident.
- Collision coverage: This covers your damages if you are in an accident, whether you caused it or not.
- Comprehensive coverage: This covers damages that aren’t related to an accident, such as ones from theft or vandalism.
- Medical coverage: Medical coverage is a separate insurance policy that will pay your medical bills if they aren’t taken care of by another policy.
- Uninsured/underinsured coverage: This insurance covers your bills if you’re in an accident with a driver who doesn’t have insurance.
Only bodily injury and property damage liability are required in Texas. However, it’s important to work with an insurance professional to find out which coverages you need. It could prevent you having to pay accident-related expenses that could have a big negative impact on your business.
How much commercial auto coverage do I need in Texas?
The minimum level of insurance required is:
- $30,000 in bodily injury liability coverage per person
- $60,000 in bodily injury liability coverage per accident
- $25,000 in property damage coverage per accident.
Please note that these are only minimums, and only cover other drivers. You receive no compensation if you’re involved in an accident and carry minimum coverage. A reputable insurance professional will help you decide how much coverage you really need.
Commercial auto insurance requirements in Texas
Texas has lower coverage requirements for commercial auto insurance. But, you’ll need to provide additional coverage for drivers who are injured. Here’s a brief look at the minimums in different industries.
Basic Commercial Auto Coverage Requirements in Texas:
- $30,000 bodily injury liability
- $60,000 bodily injury liability per accident
- $25,000 property damage liability per accident
Insurance Coverage Requirements for Rideshare Drivers in Texas:
- $50,000 for bodily injury per person
- $100,000 for bodily injury per accident
- $25,000 for property damage per accident when driving with the rideshare app turned on
- $1 million after accepting a job, and/or when transporting a passenger
If you operate a large passenger transportation service, you’ll also need to provide:
- Interstate passenger vehicles that hold up to 16 people: $5,000,000 of liability coverage
- Interstate passenger vehicles that hold 7 to 15 people: $5,000,000 of liability coverage
Texas has very specific insurance coverage requirements for Household Goods Carriers. These include:
- $300,000 in commercial vehicle liability coverage
- $5,000 for loss or damage to a single shipper’s cargo
- $10,000 for aggregate loss or damage to multiple shipper cargo carried on any one motor vehicle
Transport companies are also required to carry either worker’s compensation or accidental auto coverage equal to the following amounts:
- $300,000 for medical expenses and coverage for at least 104 weeks
- $100,000 for accidental death and dismemberment, including 70 percent of employee’s pre-injury income for not less than 104 weeks when compensating for loss of income
- $500 for the maximum weekly benefit
Also, other kinds of property transport trucks that carry general freight only within Texas need $500,000 in commercial auto liability coverage.If you transport oil in Texas and across state lines, you’ll also be required to carry $1M in liability coverage. If you transport other hazardous materials in Texas and across state lines, you’ll be required to carry a minimum of $5M in auto liability insurance.
How much does commercial auto insurance cost in Texas?
Costs vary and are based on:
- How many vehicles are covered
- The type and cost of the vehicles
- The features they’re equipped with
- The type of business
- The types and levels of coverage
- Where the business is located, along with where the vehicles are used and parked.
In our study, commercial auto insurance costs $650-$900 in Texas.
Commercial auto insurance is typically more expensive than personal auto protection. It’s because commercial vehicles are usually more costly to repair or replace. In addition, commercial policies typically include more than one driver.
In order to get cheap price for commercial auto insurance in Texas, make sure to shop around with a few companies or compare several quotes with a digital broker like CoverWallet.
How to find cheap commercial auto insurance in Texas?
Commercial auto insurance is required legally in Texas. Not having it might be a very bad idea, especially when accidents happen. In some cases, your company might be bankrupt and you might be jailed as a result.
The good news is that it is possible to find cheap commercial auto insurance by following the tips below:
- Always shop around with at least 3-5 providers or a digital broker such as as CoverWallet to compare several quotes before deciding on the final carrier
- Maintain a good driving record and credit score, that will help decrease your commercial auto premiums
- Maintaining your commercial auto insurance coverage steadily. If you have gaps in your commercial auto insurance coverage, your premiums might increase as a result
- Lastly, if the carrier offers telematics monitoring to reduce the premium as a result of your good driving record, you might want to opt in that program.
Should delivery drivers carry commercial auto insurance in Texas?
It’s definitely a good idea to look into commercial auto insurance if you work as an independent delivery driver. Many people are delivering orders for companies, like DoorDash, uberEat, or GrubHub, full-time these days. If you are using your personal vehicle for this kind of work, you’ll likely also be expected to provide your own auto insurance.
Although some companies, like DoorDash, PostMates, and UberEats, do provide a commercial auto insurance policy for drivers, these policies are typically ‘excess’ policies that only kick in when the driver’s personal auto insurance maxes out of its limits. Also, if you don’t carry personal insurance, the company’s auto insurance won’t cover you either.
Other delivery services, like GrubHub and Instacart, don’t provide commercial auto insurance for their drivers. So, make sure you get some additional auto insurance to protect yourself. In such case, you would need to have your own commercial auto insurance or an attached rider to your personal auto insurance to cover your commercial use of your car.
Who needs commercial vehicle coverage in Texas?
If you live in Texas and drive a vehicle for business reasons, it’s likely you need commercial insurance. If you drive a vehicle to conduct business, it’s unlikely that your personal insurance policy will cover you. An experienced insurance professional can evaluate your situation and let you know for sure.
The situations that typically require commercial vehicle insurance:
- Your business owns, rents or leases vehicles
- You have employees who drive their own vehicles for business purposes
- You have employees who drive company cars
- You have employees who lease, rent or own company vehicles.
It’s not worth risking the future of your operation by not having the right insurance. Consult with a professional to ensure you have the correct coverage.