Texas companies must maintain minimum amounts of commercial auto liability insurance coverage to comply with state laws. Depending on your vehicle type, your business may also be subject to Federal Motor Carrier Safety Administration (FMCSA) regulations.
What Does Commercial Auto Insurance Cover?
Commercial auto liability insurance may help provide financial protection from third-party injury and property damage claims, but it only pays up to the policy’s limits. Depending on your risks and exposures, your agent may recommend that you purchase more than the minimum required amount of liability coverage.
Depending on the optional coverages you choose, commercial auto insurance may also help protect your company’s vehicles and help cover accident-related injuries for your company driver and their passengers. Your agent can help you understand how your coverage options may help protect your company from the adverse financial effects of certain damage or injury-causing accidents and incidents.
Commercial auto insurance is highly customizable. You can choose your deductible, which is the amount you pay for certain coverage types before your insurance coverage kicks in. You can also select the dollar limits on specific policies, such as liability, uninsured/underinsured motorist, rental reimbursement and personal injury protection (PIP).
Does Personal Auto Insurance Cover Business Use?
If your company uses vehicles to conduct business, you must have at least the minimum amount of required liability coverage—even if the vehicles are owned by you or your employees.
While personal auto insurance may provide coverage while you or your employees are driving to and from work, it may not cover accidents and incidents that happen while you are driving for business purposes. Hired and non-owned auto insurance (HNOA) coverage is designed to help cover accidents and incidents in leased, personal or rented vehicles when used for work purposes.
The agents at Contigo Insurance Agency in Austin, Texas, are ready to help you get commercial auto insurance to meet your company’s needs. Contact us today to learn more about your options and get a personalized quote.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.