The owner of an insured business in Texas can make changes to its commercial auto insurance policy by notifying the insurer. The change is typically enacted through the state-licensed insurance agent who sold the business its commercial auto policy. If there is no agent, contact another knowledgeable agent to review the policy and see if other better coverage is available. If no alternatives are found, the agent can help you request the needed coverage changes with the current insurer.
Insured businesses in Texas can make changes to their commercial auto insurance policies at any time, provided there is a mutual agreement between them and their insurers.
The changes that can be made to a commercial auto insurance policy in Texas include:
The scope of coverage: Depending on the premiums costs the scope of the coverage can be expanded to include, for instance, personal injury protection coverage to pay for bodily harm inflicted on a driver or passenger, or an increase of liability insurance past the state minimum requirements.
The deductible: Insured businesses can change their deductible amounts to reduce or increase the cost of insurance premiums depending on the needs of the business. For example, if a business opts for a higher deductible, premium costs will go down
The payment structure: Depending on their financial strength, businesses can make changes to their premium structures. For instance, they may change from paying upfront annually to making monthly payments. However, the insurer reserves a right to approve or deny changes to the insurance payment structure based on its assessment of a business
It may be difficult to make changes to commercial auto insurance coverage after payment. While the representative of the business can contact the insurance provider or their agent to make changes to the policy, in most cases, the insurer will have you purchase a new commercial auto policy with the newly desired coverage limits.The new policy will come into force once a contract is signed and premium is paid. Then you can cancel the old policy with insufficient coverage and get a refund.
Yes, an insured business can add commercial vehicles to its active commercial auto insurance, as long as the coverage limits remain unchanged. Adding more company cars to the policy will increase the insurance cost.
An insured business can remove business vehicles from its commercial auto insurance policy, as long as at least 1 insured vehicle remains. Removing vehicles from the policy reduces the cost of insurance premiums paid by the business.
Note: Do not remove insurance coverage from the vehicles until you sell them and/or officially transfer the ownership to another entity. While your business remains the owner, you must maintain at least the state-mandated minimum liability coverage - 30/60/25:
30,000 for bodily injury per person, with a limit of $60,000 total per accident, and
$25,000 in property damages
These are just the minimums. The commercial coverage that is actually needed is usually significantly higher. Make sure that your company cars have enough coverage - speak with a Texas-licensed commercial property agent to get professional’s advice based on your business needs.
Insurers can not make changes to a commercial auto insurance policy without the consent of the business owner or their designated representatives. If a commercial insurer must make any changes to a policy, it sends a written notice to the insured business, detailing the upcoming changes, the effect of the change on the insured business, and the options a business may take if they want to continue the coverage or leave.