Insurance and Finance

Guide to Commercial Auto Insurance in Texas

By Staci Parks 11.10.21

Commercial vehicles are an essential part of many businesses, including everything from caterers to plumbers. These types of policies can apply to large corporations, small businesses, and every type of entrepreneurial venture in between. Bottom line: If your vehicle is used for business purposes, you need the right kind of coverage, says Mitch Widler, a Texas Farm Bureau Insurance Agent in Weatherford.

Here’s a quick guide to what Texan business owners need to know about commercial auto insurance.

Know What’s Covered

A commercial auto policy can cover several different types of business-owned vehicles, ranging from pickup trucks and semis to SUVs and passenger vans. However, some commercial auto policies do not extend liability coverage to trailers. Make sure your Agent knows about any trailers you may use for your business so they can be added to your commercial auto insurance policy.

Understand Your Coverage Limits

Just like with personal auto insurance, you can choose what the policy will cover outside of the minimum required coverage. Widler suggests selecting policy limits that will protect your company’s assets in the event of an accident. “Your risk is what you stand to lose if you do have low limits,” Widler says. Your Agent can help you assess your amount of risk to ensure you have the best policy for your needs.

Identify Who’s on Your Policy

Any employee who drives a company vehicle should be added to your business’ commercial auto insurance policy. This shows the insurance company that the employee has approval to drive the vehicle on behalf of the company. “The company needs to understand that every time that employee leaves in a work vehicle, they’re representing that company behind the wheel,” Widler says. “They need to make sure they have safe, responsible drivers.”

Keep Your Agent in the Loop

Day-to-day changes can slip under the radar when you’re running a business. But it’s important to talk to your Texas Farm Bureau Insurance Agent anytime there’s a change in your commercial vehicles. That can include adding a new vehicle to your fleet or removing a former employee from your policy.

“It’s important to do that annual review to make sure that everything is like it needs to be before something happens — not after,” Widler says. “It can be a 15-minute conversation of what you do and don’t have covered [so we’re] all on the same page.”

Your Agent can answer your commercial auto insurance questions and help you get the coverage you need to keep your business healthy and successful. Contact your Agent today to schedule a 360 Review.

Coverage and discounts are subject to qualifications and policy terms and may vary by situation. © 2021 Texas Farm Bureau Insurance