Buying Commercial Auto Insurance in Texas
A business can get commercial auto insurance in Texas from a commercial insurance company by contacting a licensed commercial insurance agent in Texas. The Texas Department of Insurance (TDI) provides an insurance agent lookup tool that persons looking to get commercial auto insurance can use to find licensed insurance agents in the state. Insurance agents knowledgeable in commercial auto coverage can:
Analyze your needs based on the type of business vehicles you own, the nature of the business, and the risks you are exposed to
Inform you about the various commercial insurance products available while specifying the ones you need
Help you design a plan that fits your insurance needs
Compare policy limits and coverage options from different insurers to pick the most suitable policy with the best price
A business owner can also get a commercial auto policy through the company they purchased their personal auto insurance policy from. Doing this may make them eligible for loyalty and bundling discounts.
Do you Actually Need Commercial Auto Insurance in Texas?
Yes, a business/business owner needs a commercial auto policy if it falls into any of the categories listed below:
The business owner uses their personal vehicles for business: Your regular auto insurance does not cover commercial use, even for small businesses. Auto insurance only covers your business’s vehicle if used within the limits of your policy’s coverage. Hence, you will surely need business auto insurance if you use your vehicle to deliver products to customers, convey work equipment, transport customers for a fee, or lease out your vehicle periodically.
The business has company vehicles for their employees: If a business owns company vehicles assigned to their employees or used for business-related purposes like logistics, you need commercial auto insurance.
The business leases or rents vehicles or trucks: Generally, leasing or renting vehicles or trucks to third parties requires that the vehicles are protected from accidents caused by third parties or at-fault accidents. To ensure the business does not have to bear the financial burden of repairing their commercial vehicles if they are damaged or destroyed in a crash, the business will need to get a commercial auto policy.
Your vehicle is an integral part of your business: Business owners will need commercial auto insurance from commercial insurance companies in addition to their business insurance policies if their vehicles are a core part of their businesses. Examples of such cases are using food trucks to sell food in different locations or owning a fleet of semi-trucks or tractor-trailers.
How to Shop for Commercial Auto Insurance in Texas?
Commercial auto insurance in Texas is available through companies that offer business insurance in the Texas insurance market. In shopping for commercial auto insurance in Texas, it is important to know the extent of commercial auto insurance you need and the options available to you. Your insurance agent can help you assess your insurance needs and recommend coverage policies that best suit your needs. Contact a knowledgeable Texas-licensed insurance agent to discuss your options and compare commercial insurance quotes.
How to Qualify for Commercial Auto Insurance in Texas?
To qualify for commercial auto insurance in Texas, you must own a business, big or small, that involves using vehicles to perform daily tasks. The business could involve transporting clients, products, or work equipment to assigned locations; or leasing out cars, vans, semi-trucks, and tractor-trailers. Likewise, people who use their cars for business-related errands and companies that own company cars qualify for commercial auto insurance in Texas.
A business owner applying for commercial car insurance in Texas must have their business based in Texas. Employing drivers with clean driving records is a good way to qualify for business auto insurance. This is because most insurance companies analyze the level of risk involved in insuring a business before issuing a commercial auto policy, regardless of whether it is a large or small business. Thus, a business with drivers that have multiple traffic violations on their driving records may be denied commercial auto policy because they will be considered high-risk. Even if they are not denied, the business may have to pay high premiums.
It is advisable to consult with a Texas-licensed insurance agent to know what specific qualifications your business needs to have.
Where to Buy Commercial Auto Insurance in Texas?
Typically a business owner can buy commercial auto insurance through regular insurance companies in the Texas insurance market. These insurance companies can be accessed online by comparing commercial insurance quotes online or contacting a Texas-licensed commercial property agent. Comparing commercial insurance quotes online is possible through private third-party websites that offer free quotes. However, relying on only online quotes without consulting an agent is not advisable. This is because most times, the policy limits, rating factors, liability coverage, and general policy language may be difficult to understand by non-agents.
The easiest way to buy a commercial auto insurance policy that perfectly suits your business needs and budget is to contact an insurance agent in Texas. Texas-licensed insurance agents know the state insurance market in and out and can help you purchase commercial auto insurance plans that suit your business types and cover your business liabilities.
Furthermore, an individual can get commercial auto insurance online through websites that offer different quotes. However, before purchasing any commercial auto insurance found online, it is necessary to use the TDI’s complaint data resources to ensure you don’t end up with an insurance company with many complaints on service delivery or a poor claims experience. The complaint data resources gather all the complaints made against specific insurance companies in Texas. If an insurance company has a complaint index score of more than one indicates that the insurer received more complaints than others. However, a score of less than one shows that the insurer received fewer complaints than the average insurance company.
Where Can I Buy Affordable Commercial Auto Insurance in Texas?
The best way to buy affordable commercial auto insurance in Texas is by consulting a licensed-insurance agent in Texas who can help you find commercial car insurance at competitive rates. An insurance agent can help you determine your commercial auto needs and get multiple commercial auto insurance quotes tailored to those needs. Note that the cost of your commercial auto coverage is determined by your vehicle type, number of drivers, their driving record, vehicle’s storage location, and the coverage options. For example, you can add a Non-Owned auto endorsement, to allow employees drive their own cars on company business, while using company coverage, but the cost of coverage will go up. However, even at that, your Texas-licensed commercial property insurance agent can help you compare commercial insurance quotes and get you the most affordable commercial auto policy that will cover your business liability within the coverage’s limit.
How to Apply for Commercial Auto Insurance in Texas
To apply for commercial auto insurance in Texas, contact a knowledgeable state-licensed insurance agent who can help you look for suitable commercial insurance products and simplify the application process. A Texas-licensed insurance agent can explain everything about coverage offered by their company (captive agent) or one of the companies they represent (independent agent) and answer any other questions you may have.
During application for commercial auto insurance in Texas, you will need to provide:
Type of vehicle and use - You will need to provide the type of vehicle you want to purchase commercial auto insurance for. The vehicle could be a cargo van, semi-truck, dump trucks, a food truck, a bus, a passenger van, a sedan, an SUV, etc. You will also need to state the vehicle’s specific use.
The gross vehicle weight - The vehicle's weight is an important factor when applying for business auto insurance in Texas because vehicles whose gross weight is over 10,000 require specialized commercial auto insurance.
The number of vehicles your business owns - Insurers require this information to know the extent of coverage your business needs for its vehicles.
Your business’s bank information - Be ready with your business’s checking account number and the corresponding bank routing number to set up automatic payments of your premiums, which may qualify you for a discount on your premium. When applying, you can present a voided check to your business’s insurer, as the check contains the required bank information. Your insurer may also need your business’s bank information to check your business’s credit history, payment history, and credit utilization rate. However, your social security number can also be used for these.
Registration Certificate (RC) book of the vehicle - Contains vehicle details, including the registration number, registration date, month and year of manufacture, model of vehicle, etc.
You will also need to provide other information like the date when the coverage should begin, your personal details relevant to your business (full name, date of birth, and personal contact info), and the names of persons to be added to the policy.
After submitting the above-listed documents and any other document or information, the insurance company you are applying to will determine your premium with facts from the documents and information provided. Your commercial auto insurance kicks off when you pay the required premium for the policy year.
You can also apply for commercial auto insurance by searching for quotes online. When you find a quote you are interested in, fill out an online quote request, after which you will get a follow-up call from the insurance agent representing the insurer you registered with.
Note that it is beneficial to engage the services of a Texas-licensed agent to guide you through the process of applying for commercial auto insurance. A knowledgeable Texas-licensed agent can also help you understand all the insurance policy terms so you can make well-informed choices.
Who Can Help with Application for Commercial Auto Insurance in Texas?
In Texas, you can only get help with your application for commercial auto insurance from a knowledgeable Texas-licensed agent. An insurance agent licensed by the Texas Department of Insurance (TDI) is qualified to guide you through the application process. Even if you purchase your business’s commercial auto insurance policy online, you will need an insurance agent to help you understand the policy’s terms and conditions and point out any legal disclaimers.
Should I Use an Insurance Agent to Buy Commercial Auto Insurance in Texas?
Yes. You should use a knowledgeable licensed-insurance agent to buy commercial auto insurance in Texas. Using an agent to buy insurance does not attract extra costs, and you will get professional guidance on the exact commercial coverage option to pick and the amount to purchase based on your commercial auto needs. An insurance agent is needed:
Before you apply for commercial auto insurance, to guide you on what commercial insurance policies you need so you don’t under-insure or over-insure your commercial vehicles
During your application for commercial vehicle insurance, to help you compare different quotes to get the right coverage that suits your business’s needs at the best price possible from a company with a good claims experience. An agent will also help find discounts that will help you save on your insurance
After you purchase your policy, to help you understand the legal terms and conditions of your policy, provide constant support if you run into any issues with your insurer or policy, and guide you on your insurance renewal
Can you Purchase Commercial Auto Insurance through an Agent in Texas?
Yes. In fact, you should only purchase your business’s commercial auto insurance through an agent in Texas. Purchasing your insurance policy from unlicensed individuals or individuals whose agent licenses cannot be verified is risky as you may become a victim of bad advice or worse, fraud. Ensure you involve an insurance agent whenever you intend to purchase an insurance policy.
Why Do I Need an Agent for Commercial Auto Insurance in Texas?
In Texas, an insurance agent licensed by the TDI is needed for various reasons; an insurance agent in Texas can help you:
Ascertain and evaluate the commercial auto risks that your commercial vehicles are exposed to
Identify your business’s coverage needs to ensure you have sufficient coverage and do not buy more than what you need
Compare different quotes to get the right coverage that suits your business’s needs at the best price possible
Source for discounts for your policy
Enlighten you on ways to reduce your risk of commercial auto accidents
Understand the terms and conditions of your insurance policy
Why is an Insurance Agent Important for Commercial Auto Insurance in Texas?
An insurance agent is important for commercial auto insurance in Texas. They are experienced and knowledgeable enough to provide you with every support, guidance, and information you need before, during, and after your commercial vehicle insurance application. An experienced agent with access to multiple insurers can also help you get the perfect policy that will protect your business and suit your business’s commercial auto needs at an affordable price. A typical insurance policy may contain complex information that a person not versed in insurance may have issues understanding. However, an insurance agent can help explain the policy's terms, conditions, and exclusions.
What Kind of Insurance Agents Work with Commercial Auto Insurance in Texas?
In Texas, two types of insurance agents work with commercial auto insurance companies, including captive agents and independent agents. Both agents serve a similar purpose: to simplify your application process and help you design the best policy that suits your needs. However, captive agents are limited to a certain extent because they only represent one insurance company and market insurance plans from only that insurer. This simply means that you will not be able to compare policies and prices from other insurers, which limits your choice. On the other hand, you can interface with the captive agent of your insurer if you have already purchased your commercial auto insurance policy from them, possibly via an association or your employer. In such a case, the captive agent of your insurer will serve you best.
Independent agents are different from captive agents; they are not committed to a single insurance company. Instead, they can sell insurance policies from multiple insurers in Texas. If you have not yet purchased a commercial vehicle insurance policy and are looking to get one, then an independent agent is your best bet. This is because they do not work for just one insurer, so they can compare policies and prices, ensuring that you get the best policy that suits your needs at the most affordable price.
How to Choose an Agent for Commercial Auto Insurance in Texas?
Choosing an agent for commercial auto insurance requires that you know the qualifications that good insurance agents should have. Apart from being Texas-licensed, an insurance agent must have these qualifications:
Quality experience and knowledgeability on commercial auto insurance: No one wants to engage the services of an insurance agent who is not an expert at their job. You can identify a knowledgeable and experienced agent by how well they can proffer solutions to issues raised, particularly in complex situations. A knowledgeable insurance agent should be able to demystify issues related to commercial auto policy on the spot and offer a comprehensive selection of policies that suit your needs.
Placing more value on customer satisfaction rather than monetary gains: An insurance agent should be more concerned about getting you a perfect policy that meets all your insurance needs at the best price instead of concentrating on earning a commission. You can identify this by how patiently and actively the agent listens to your needs and how willing they are to go all out to ensure you get the best policy at the best price.
Excellent customer service: You should consider whether the agent you intend to work with has excellent customer service skills. Ask yourself questions like:
Is the agent always reachable during regular business hours?
Does the agent provide a timely response to inquiries?
Does the agent pay attention to detail?
Can the agent easily identify your needs and proffer valuable solutions?
Is the agent trustworthy, or they’ll rather use deception to close business deals?
If your answer is no to any of these questions, you may need to consider getting another agent.
In addition, you can use the resources provided by the Texas Department of Insurance to look up an insurance agent to confirm that they are state-licensed and credible.
There are two types of agents in Texas: captive agents and independent agents. These two agents serve different purposes. Captive agents only represent one insurance company and market insurance plans from only that insurer, meaning that you will not be able to compare policies and prices from other insurers, which limits your choice. On the other hand, independent agents sell insurance policies from multiple insurers in Texas. If you have not purchased a commercial auto insurance policy and are looking to get one, an independent agent is your best bet. However, suppose you have already purchased your policy or have a particular insurance company in mind. In that case, the captive agent of that insurance company will be a better option than an independent agent.
How Can I Find an Agent who is Proficient in Commercial Auto Insurance?
You can find an agent proficient in commercial auto insurance via any of the agent lookup resources provided by the Texas Department of Insurance. You can also find a proficient commercial auto insurance agent through a referral from a trusted person that has previously worked with the agent. Before consulting with an agent, it is advisable to check for online reviews or find out the experiences of people you know who have worked with them.
How to Compare Commercial Auto Insurance Quotes in Texas
Typically, comparing quotes before making a purchase is vital to ensure you get the most suitable coverage at the best price possible. There are a couple of ways you can compare commercial auto insurance quotes in Texas, but the easiest and best way is to engage the services of a knowledgeable independent insurance agent. Independent insurance agents are conversant with the Texas insurance market and they know where to get the best policies to suit your business needs.
Another option is to review online quotes via third-party sites. However, in most cases, with online quotes from third-party sites, you may not be able to get the perfect policy, the options available to you may be limited, and you may end up sacrificing coverage or service quality for the price. A lot goes into comparing quotes, which is why it is best handled by an insurance professional who has discussed with you and knows your needs.
How Many Commercial Auto Insurance Quotes Should I Compare?
There is no fixed number of quotes you should compare, but it is advisable to compare at least three commercial auto insurance quotes in Texas. Engaging the services of an independent insurance agent in Texas when comparing quotes is beneficial because that way, the process will be more seamless, and you will be able to compare as many quotes as you want.
How Important is it to Have a Local Agent for Commercial Auto Insurance?
It is important to have a local agent for commercial auto insurance because, typically, local independent agents have more to offer, particularly in pricing and coverage quality. Consider getting a local insurance agent for the following reasons:
A local Insurance agent can navigate your local insurance market better. Hence, they can help you source for discounts and get you the best rates available to you. Doing this will help you to save some money on your insurance.
A local insurance agent has access to various insurance companies within your locality and knows which ones offer the best services based on your needs. They can also help you get multiple quotes from these insurance companies within a short time.
A local insurance agent can easily understand your commercial auto insurance needs because they are conversant with your area, and they know what is obtained there, so they can easily discern what options work best for you.
Does it Cost me Extra to Use an Insurance Agent for Commercial Auto Insurance?
No. It does not cost extra to engage the services of an insurance agent for commercial auto insurance. When you purchase insurance through an agent, you will only be required to pay the regular premium that your insurer determines. No extra charges apply for using an insurance agent. Insurance agents earn commissions on sold policies.
How Does a Commercial Auto Insurance Agent Get Paid in Texas?
Commercial auto insurance agents get paid in Texas by commissions on sold policies from the insurance company that contracted them to sell their products. The commission is basically a percentage of the premium paid to the insurance company by the client the insurance agent secured. However, captive agents are usually paid monthly salaries by the insurance company they represent in some cases, but this is not the case for independent agents. Independent agents can only earn commissions and not monthly salaries since they are committed to more than one insurance company.
Can I Buy Commercial Auto Insurance Coverage Online?
You can buy commercial auto insurance coverage for your business online through a third-party site that provides insurance quotes online. Despite this, you will still need to engage the services of a Texas-licensed insurance agent to assist you with the process of applying for insurance online. This is because sometimes, the process of getting insurance could get complex, especially when trying to determine what business auto insurance coverage types your business needs based on the nature of the business you run, vehicle type, location, etc. You will also need an insurance agent who understands the nitty-gritty of your insurance policy to explain your policy’s terms and conditions and legal disclaimers to you.
Can Anyone Get Commercial Auto Insurance in Texas?
Not everyone can get commercial auto insurance in Texas. This is because it is specifically designed for persons who own businesses, drive their personal vehicles for business purposes, lease vehicles or trucks, or have employees who own company cars. Therefore, persons seeking commercial auto insurance will need to belong to any of the highlighted categories. This is because commercial auto insurance products are mainly designed to protect businesses and cover commercial claims. However, in some cases, anyone needing more coverage than auto insurance offers may get commercial auto insurance. Talk with a Texas-licensed insurance agent to review your business needs and help you find the right commercial car insurance policy for you.
Can you Obtain Commercial Auto Insurance at Any Time in Texas?
Yes. You can obtain commercial auto insurance at any time in Texas, although it is best to get it as soon as you purchase your commercial vehicle or before you begin to use it.
Is Buying Too Much Commercial Auto Insurance a Smart Decision?
No, buying too much commercial auto is not a smart decision, especially when you have determined the exact amount of coverage you need with the help of a licensed insurance agent. Commercial auto insurance covers property damage and medical payments incurred from an accident or peril involving your commercial auto vehicle. It also includes coverage for legal expenses if you are sued. Covered perils include vehicle theft, vandalism, riots, natural disasters, and other losses and damages, depending on your purchased coverage.
It is advisable to consult with an insurance agent to be sure you are only buying the amount of commercial insurance your business needs and not below or above what you need. What is considered too much insurance for a business may be considered just fine for a different business. For example, if your commercial vehicle is old and of low value, and you can repair it conveniently out of pocket if damage occurs, you may not need comprehensive coverage. On the other hand, a dealer that leases cars and trucks will need to purchase comprehensive and even collision coverage in addition to the minimum liability auto insurance requirement. Discuss with a Texas-licensed commercial insurance agent to review your needs and design a plan that best suits those needs.
How Do I Renew my Commercial Auto Insurance in Texas?
Commercial auto insurance usually auto renews. The insurer sends the business new policy declarations each renewal period (typically every 12 months). If the business needs to make changes to the coverage prior to renewal, contact the commercial agent who assisted you in obtaining the coverage to help you with making the change. Alternatively, you can reach out to the insurer directly and speak with their agent. During the renewal process, make sure to update any information that needs to be updated, especially if the information may lead to a review of the price of your insurance policy.
What Kind of Commercial Auto Insurance is Best in Texas?
Although commercial auto liability insurance is the type of commercial auto insurance that the law mandates everyone to have, comprehensive and collision auto insurance can be considered the best in Texas because of their coverage. While commercial auto liability coverage primarily serves the other person involved in an accident where you are at fault, comprehensive and collision insurance may cover the at-fault driver and the victim. Speak with a knowledgeable Texas-licensed commercial insurance agent to know the best coverage for your particular line of business.
What Kind of Commercial Auto Insurance Plans are Available in Texas?
The types of commercial auto insurance plans that are available in Texas include:
Auto liability coverage - This type of insurance is mandatory in Texas. It covers the other person involved in an accident you are responsible for. It is divided into bodily injury (BI) and property damage (PD). BI covers expenses incurred from injuries sustained in an accident, while PD covers expenses incurred from property damaged during the auto crash.
Comprehensive coverage - This covers perils, such as fire, theft, riots, vandalism, and damage from natural disasters. However, it excludes damage caused by any form of collision.
Collision coverage- It pays for damage caused by colliding with another car, object, or animal running into your car.
Uninsured and underinsured motorist coverage - This pays for your medical expenses and vehicle repair bills and that of your employee if they’re hit by an uninsured driver, such as in a hit-and-run accident.
Personal injury protection - It covers the medical expenses of you and the passengers in your car when you are involved in an auto crash, regardless of who is at fault in the accident.
Discuss with a Texas-licensed insurance agent to help identify the type of commercial auto insurance plan that suits your needs.
How to Find Out What Commercial Auto Insurance I Have in Texas
Check your policy document to determine the type of commercial auto insurance plan you have. However, if you have done this and do not understand the policy document. In that case, you can also contact the licensed insurance agent who assisted you in purchasing the policy to explain the policy details.
Is Commercial Auto Insurance a Good Deal in Texas?
Yes, commercial auto insurance in Texas is a good deal if you drive your personal vehicle for business purposes, lease vehicles or trucks, have employees who own company cars, or own a business that requires a vehicle to operate. It is also considered a good deal for persons who need more coverage than their personal auto insurance offers. In the highlighted scenarios, it offers financial protection against unplanned expenses caused by perils like vehicle theft, natural disasters, vandalism, accidents, etc.
