Commercial Auto and Fleet Insurance in Texas

What Does Commercial Auto Insurance Cover?

Commercial auto insurance can be set up around the way your business operates. The coverage you need will depend on your vehicles, drivers, industry, and the type of work you perform.

Auto Liability Coverage

If one of your covered drivers is responsible for an accident, liability coverage may help pay for another person’s injuries or damaged property. It may also help with the cost of defending the business against a covered claim.

Collision Coverage

Collision coverage may help repair or replace an insured company vehicle after it is damaged in an accident, regardless of who caused it. A deductible will usually apply.

Comprehensive Coverage

Not all vehicle damage comes from a crash. Comprehensive coverage may help if a company vehicle is stolen or damaged by hail, fire, vandalism, falling objects, or certain other noncollision events.

Personal Injury Protection or Medical Payments

Depending on the coverage selected, these options may help with medical expenses for the driver and passengers after an accident. Personal injury protection may also provide limited benefits for lost income and certain other expenses.

Uninsured and Underinsured Motorist Coverage

If another driver causes an accident but has no insurance—or not enough insurance to cover the loss—uninsured or underinsured motorist coverage may help with qualifying injuries and vehicle damage.

Hired and Non-Owned Auto Coverage

Your business may still face an auto-related claim even when it doesn’t own the vehicle involved. Hired and non-owned auto coverage may provide liability protection when employees use rented vehicles or their own vehicles for company business.

Towing and Rental Reimbursement

You may be able to add towing, roadside assistance, or rental reimbursement to your policy. Depending on the coverage, these options can come in handy if a work vehicle breaks down or has to stay in the shop after a covered accident.

Coverage options, deductibles, exclusions, and limits vary by policy.

Who Needs Commercial Auto Insurance?

Commercial auto coverage may be worth considering if your business owns vehicles or regularly uses them for work. You may need to look into coverage if:

• You drive to customers’ homes or job sites.
• Your employees use company cars, vans, or trucks.
• You carry tools, equipment, or materials.
• You make deliveries or transport products.
• Employees use a vehicle to run errands for the business.
• You transport customers or passengers.

You don’t need a large fleet to need commercial vehicle coverage. Even one truck or van may be used in ways that a personal auto policy doesn’t cover. Let your agent know who drives it, where they go, and what they typically carry.

Commercial Auto Insurance for Contractors

Contractors spend a lot of time on the road. You may be driving between job sites, picking up materials, hauling equipment, or sending employees across town in a company truck.

If an accident takes that vehicle off the road, the expense may go beyond the repair itself. You could also face a liability claim, a missed appointment, or difficulty getting tools and employees where they need to go.

Commercial auto insurance can be built around the way your contracting business operates, whether you have one truck or several vehicles serving different crews.

Commercial Fleet Insurance as Your Business Grows

Adding more vehicles can make insurance harder to keep up with. Depending on how many cars, trucks, or vans your business owns, you may be able to place them on one fleet policy. This can make it easier to manage your coverage as vehicles and drivers change.

Each insurance company has its own rules for what qualifies as a fleet. Meadows Insurance Agency can review your vehicles and compare the available options to see what makes sense for your business.

Are Tools and Equipment Covered?

Commercial auto insurance generally covers the vehicle itself, not every item stored inside it. Tools, equipment, inventory, and customer property may require another type of commercial coverage.

If you regularly carry expensive tools or materials, let your agent know. Meadows Insurance Agency can help you identify possible gaps and discuss coverage designed for the property you transport.

What Affects Commercial Auto Insurance Cost?

There isn’t one standard price for commercial auto insurance. Insurance companies consider several details when calculating your premium, including:

• The number and type of vehicles you insure
• How each vehicle is used
• Who is permitted to drive
• Driver records and experience
• Where and how far the vehicles travel
• The materials or equipment they carry
• Your business’s claims history
• The coverage limits and deductibles you select

A local service van that stays within one area won’t necessarily have the same risk as a truck that travels across the state carrying heavy equipment. Meadows Insurance Agency will gather the details and compare available policies based on your business.