What Does Commercial Auto Insurance Cover?

Commercial auto insurance is highly customizable and designed to help provide financial protection against potential accident-related setbacks. Your agent may recommend including the following coverages:

• Bodily injury liability— This policy may help cover third-party accident-related medical expenses up to the policy’s limits if your company vehicle is involved in an accident causing injuries to others.
• Property damage liability—If your vehicle damages someone else’s property, this coverage may help cover repair or replacement costs up to the policy’s limits.
• Collision coverage—This policy may help cover repair or replacement costs if your vehicle collides with another vehicle or object.
• Comprehensive coverage—This policy may help cover damage to the insured vehicle resulting from non-collision events like theft, vandalism or natural disasters.
• Uninsured motorist coverage—This coverage may assist with medical expenses and damages if an uninsured driver hits your vehicle.
• Underinsured motorist coverage—If the other driver doesn’t have adequate liability insurance to pay for damages, this policy may help cover the remaining costs.
• Rental reimbursement—While your vehicle is being repaired, this coverage may help with renting a replacement.
• Towing and roadside assistance—This policy may help cover specific expenses if your vehicle breaks down.
• Cargo insurance—If your business transports goods, this coverage can help provide financial protection against cargo damage or loss.
• Hired and non-owned auto coverage—This policy may help provide liability coverage to vehicles your company rents, leases or borrows for business purposes.
• Equipment coverage—This policy may help cover specialized equipment permanently attached to your company vehicle.
• Personal effects coverage—This policy may help pay to replace or repair personal items in the vehicle that are damaged or stolen.

Coverage options vary based on insurance providers and policy terms. Your agent can help you understand how each policy or endorsement may work for your company.

Is Commercial Auto Insurance Required?

Texas, like most states, mandates that businesses maintain commercial auto insurance coverage to help protect against potential liabilities that can arise from accidents or other incidents involving their vehicles. State regulations determine the minimum liability coverage limits and may vary depending on the type of vehicle and its intended use.

The specific requirements for commercial auto insurance in Texas vary based on factors such as the type of business you operate and the weight and usage of your vehicles.

The Texas Department of Motor Vehicles monitors compliance with these insurance requirements.

Contact Us

Contact Blackburn Insurance Agency in Grand Prairie, Texas, to build a commercial auto insurance plan tailored to your company’s unique needs. Our team of experts is here to help you understand your options and shop for favorable commercial auto insurance rates.

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.