How Does Texas Commercial Auto Insurance Work?

Without commercial auto insurance, your company's legal and financial well-being could be at risk. In Texas, businesses with the own automobiles are required to carry at least auto liability insurance.

If one of your company's vehicles causes an accident, you could be subject to a costly lawsuit or settlement. You are likely required to pay for damages to the other car or property, medical expenses, pain and suffering, lost wages, as well as other charges.

In addition, you may face harsh penalties for driving without auto insurance. Suppose you are caught driving without insurance. In that case, you may be subject to a fine of more than $175, a $250 yearly penalty for three years following your first violation, and an increase in your vehicle insurance premiums. In the event of a second offense, the fine may climb to up to $1000, along with a $250 yearly penalty for three years, and the state may impound your car.

Personal and commercial cars alike are required to carry a minimum amount of auto liability insurance coverage in Texas. These are the liability limits:

• $30,000 per person for bodily injury or death liability
• $60,000 in bodily harm or death liability to many individuals
• $25,000 in property damage per accident

Depending on the sorts of vehicles you possess and how they are used, your insurance company may propose higher liability coverage limits. State law in Texas also mandates personal injury protection (PIP) for all liability plans. However, you can deny this coverage by signing a waiver with your auto insurer.

There may be additional liability coverage requirements for semi-trucks and other motor vehicles having a Texas Department of Transportation serial number, depending on the type of vehicle and how it is utilized.

Check your USDOT number or docket number with the Federal Motor Carrier Safety Administration or FMCSA to determine if your firm requires these additional standards.