(800) 253-1482List of the best commercial auto insurance companies in Texas
Determining the best insurance companies for commercial auto insurance can depend on various factors, including the specific needs of your business, the types of vehicles you use, your location, and your budget. Here are some insurance companies that are often well-regarded for providing commercial auto insurance, along with explanations for their strengths:
- Progressive Commercial: Progressive is known for its wide range of coverage options, flexible policies, and user-friendly online tools. They offer customizable plans for various types of businesses, making it easy to tailor coverage to your specific needs.
- GEICO Commercial: GEICO is recognized for its competitive rates and straightforward insurance options. They provide commercial auto insurance for a variety of industries and vehicle types, making them a popular choice for businesses seeking affordable coverage.
- Nationwide Business Auto: Nationwide offers comprehensive commercial auto insurance policies with options to add coverage for equipment, tools, and cargo. They provide specialized coverage for different industries and sizes of businesses.
- Travelers Commercial Auto: Travelers is often praised for its extensive coverage options and risk management services. They offer specialized coverage for a wide range of businesses and are particularly known for providing coverage for businesses with complex needs.
- The Hartford Business Auto: The Hartford is well-regarded for its focus on small and mid-sized businesses. They offer customizable commercial auto insurance packages with features like fleet safety programs and loss control services.
- CNA Commercial Auto: CNA is known for its strong customer service and tailored insurance solutions for businesses. They provide coverage for various industries, including transportation and logistics.
- Chubb Commercial Auto: Chubb is recognized for its comprehensive coverage options and focus on high-value businesses. They provide coverage for businesses with larger fleets and more complex risk profiles.
- AmTrust Commercial Auto: AmTrust offers commercial auto insurance with a specialization in small and mid-sized businesses. They provide coverage options tailored to specific industries and offer risk management services.
- Hiscox Commercial Auto: Hiscox is known for its straightforward and customizable coverage options. They offer commercial auto insurance for various types of businesses, including freelancers and small business owners.
- State Farm Commercial Auto: State Farm offers commercial auto insurance with the convenience of working with a well-established insurer. They provide coverage for a wide range of businesses and vehicle types.
In Texas, typical commercial auto insurance coverages include:
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Liability Coverage:
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Bodily Injury Liability: Covers costs associated with injuries to others in an accident where the insured vehicle is at fault.
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Property Damage Liability: Pays for damage the insured vehicle causes to someone else’s property.
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Physical Damage Coverage:
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Collision: Covers damage to the insured vehicle resulting from a collision with another vehicle or object.
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Comprehensive: Protects against losses due to theft, vandalism, fire, natural disasters, and other non-collision events.
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Uninsured/Underinsured Motorist Coverage:
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Provides protection if you or your employees are in an accident caused by a driver who either has no insurance or insufficient insurance to cover the damages.
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Medical Payments (MedPay):
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Covers medical expenses for the driver and passengers of the insured vehicle, regardless of who is at fault in an accident.
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Personal Injury Protection (PIP):
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Similar to MedPay, but also covers lost wages and essential services. PIP is not mandatory in Texas but is available.
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Hired and Non-Owned Auto Liability:
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This coverage extends to vehicles that your business might use but does not own, such as rented vehicles or personal cars used for business purposes.
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Cargo Insurance:
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Protects against loss or damage to goods while they are being transported in your commercial vehicle.
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Garage Liability:
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Specifically for businesses that work on or deal with vehicles, like auto repair shops or parking garages, covering risks associated with customer vehicles on the premises.
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On-Hook Towing:
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For towing businesses, this covers damage to vehicles while they are being towed.
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Rental Reimbursement:
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Pays for a rental vehicle if your commercial vehicle is out of service due to a covered repair.
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Roadside Assistance:
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Covers services like towing, flat tire changes, battery jumps, or lockout services.
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In Texas, the minimum liability coverage requirements for commercial vehicles are:
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$30,000 for bodily injury to or death of one person in any one accident
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$60,000 for bodily injury to or death of two or more persons in any one accident
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$25,000 for damage to or destruction of property of others in any one accident
- Trucks carrying less than 26,000 pounds and transporting only household goods must have a minimum of $300,000 of liability insurance.
- Buses designed or used to transport more than 15 people, but fewer than 27 people | $500,000 of liability insurance.
- There are many more requirements depending on the type of vehicle and goods, please click here for details of Texas Commercial Auto Insurance Requirements
However, many businesses opt for higher limits and additional types of coverage to better protect their operations. It’s advisable for businesses to consult with an insurance agent to tailor coverage to specific needs considering the type of vehicles used, the nature of the business, and the areas where the vehicles operate.
Federal Commercial Auto Insurance Coverages – Interstate Trucking Insurance Requirements
The Federal Motor Carrier Safety Administration (FMCSA) sets minimum insurance coverage requirements for interstate commercial auto insurance. Here are the key federal requirements:
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For Non-Hazardous Freight:
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$750,000 minimum liability insurance for vehicles with a gross vehicle weight rating (GVWR) over 10,000 pounds.
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For Hazardous Materials:
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Hazardous Substances (as defined in 49 CFR 171.8) transported in cargo tanks, portable tanks, or hopper-type vehicles with capacities over 3,500 water gallons, or in bulk Division 1.1, 1.2, or 1.3 materials: Minimum of $5,000,000.
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Class 2 through 9 Hazardous Materials (excluding petroleum products): Minimum of $1,000,000, but this can go up to $5,000,000 depending on the specific materials and quantities.
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Oil Transport: For vehicles transporting oil, the minimum required coverage is $1,000,000.
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Documentation:
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All carriers must file proof of insurance with the FMCSA before being granted operating authority. This involves submitting forms like the MCS-90 (insurance endorsement) or MCS-82 (surety bond) to confirm coverage at these minimum levels. The Department of Transportation will assign a DOT number which can be found in the FMCSA SAFER SYSTEM.
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Self-Insurance:
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Under special circumstances, carriers can operate on a self-insured basis if they meet specific financial requirements set by the FMCSA.
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Interstate vs. Intrastate:
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These federal requirements apply to interstate commerce, meaning transportation between states. Intrastate commerce (within one state) might have different state-specific requirements, but when operating across state lines, these federal minimums must be adhered to.
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These requirements ensure that there is adequate financial responsibility in place to cover potential damages or injuries resulting from accidents involving commercial vehicles. Many carriers opt for higher limits than the minimum required to offer greater protection, especially considering the potential for litigation and high costs associated with severe accidents.
