Commercial Auto Insurance in Texas

Commercial Auto Insurance to Keep Your Woodlands Business Moving

In a dynamic and sprawling community like The Woodlands, your vehicles are often the lifeblood of your business. From contractor vans on Woodlands Parkway to delivery vehicles serving our village centers, company cars and trucks are essential tools for success. Protecting them—and your entire business from liability on the road—requires a dedicated Commercial Auto Insurance policy.

The Critical Gap: Why Your Personal Auto Policy Isn't Enough

This is one of the most common and dangerous misconceptions for business owners. A personal auto policy is not designed to cover vehicles used for business purposes. If you or an employee get into an accident while driving for work—whether you're visiting a client, making a delivery, or transporting equipment—your personal insurance could deny the claim entirely. This would leave your business exposed to potentially devastating lawsuits and repair costs.

Essential Coverage for a Wide Range of Woodlands Businesses

Commercial Auto insurance is a must-have for a diverse range of businesses operating in and around The Woodlands, including:

• Contractors: Plumbers, electricians, landscapers, HVAC technicians, and builders heading to job sites in villages from Creekside Park to Grogan's Mill.

• Professional Services: Real estate agents showing properties in Sterling Ridge, consultants visiting corporate clients, or sales teams traveling throughout the greater Houston area.

• Retail & Food Service: Any restaurant, caterer, or shop that uses a vehicle for deliveries.

• Any Company that owns vehicles registered in the business's name and used by its employees.

A tailored policy can provide liability protection, physical damage coverage for your vehicles, and even protection for employees using their own cars for business errands (Hired and Non-Owned Auto coverage).

Don't risk your business with the wrong auto insurance. As your local Woodlands agent, we understand the needs of local businesses. Contact us today for a complimentary review of your vehicle usage and a quote for the right Commercial Auto protection.

Commercial Auto Insurance FAQs

What is Commercial Auto Insurance?

Commercial Auto Insurance is a type of business insurance that helps cover the costs of an auto accident if you or an employee is at fault. This policy provides liability and physical damage protection for vehicles—such as cars, trucks, and vans—that are used for business purposes.

Who needs Commercial Auto Insurance?

Any business that uses vehicles to conduct its operations needs this coverage. This includes companies that:

• Own, lease, or rent vehicles for business use.

• Have employees who drive company-owned or leased vehicles.

• Have employees who use their own personal vehicles for business errands (e.g., making deliveries, visiting clients, or picking up supplies).

How is Commercial Auto Insurance different from a Personal Auto policy?

While both offer similar types of coverage (liability, collision, etc.), Commercial Auto policies are designed for the unique risks of business use. They typically offer higher liability limits, specialized coverages for hauling equipment or goods, and protection for a wider range of vehicles and employees.

Can I use my personal auto insurance for my business vehicle?

No, this is not recommended. Personal auto policies almost always contain an exclusion for business-related use. If you get into an accident while driving for work, your personal insurer could deny the claim, leaving you and your business financially responsible for the damages.

What types of vehicles are covered under a Commercial Auto policy?

A wide range of vehicles can be covered, including:

• Standard cars, pickup trucks, and SUVs

• Work vans and utility trucks

• Box trucks and dump trucks

• Food trucks

• Tow trucks

• Passenger vans and shuttle buses

What does a Commercial Auto policy typically cover?

A standard policy includes several key coverages:

• Liability Coverage: Pays for bodily injury and property damage you cause to others in an at-fault accident.

• Physical Damage Coverage: Includes Collision (covers damage to your vehicle from a crash) and Comprehensive (covers damage from theft, vandalism, weather, etc.).

• Uninsured/Underinsured Motorist Coverage: Pays for your injuries and damages if you're hit by a driver with little or no insurance.

• Medical Payments/Personal Injury Protection (PIP): Helps pay for medical expenses for you and your passengers, regardless of who is at fault.

What is Liability Coverage for Commercial Auto?

Liability coverage is the cornerstone of your policy. It covers the financial costs if you or an employee causes an accident that results in bodily injury to another person or property damage to their vehicle or property. It also covers the legal defense costs if your business is sued.

What are Physical Damage coverages (Collision and Comprehensive)?

• Collision Coverage: Helps pay to repair or replace your vehicle if it's damaged in a collision with another object (like a car or a pole).

• Comprehensive Coverage: Helps pay for damage to your vehicle from non-collision events, such as theft, vandalism, fire, hail (common in Texas), or hitting an animal.

What is Uninsured/Underinsured Motorist Coverage?

This coverage protects you when the at-fault driver doesn't have enough—or any—liability insurance to cover your expenses. It can pay for your medical bills, lost wages, and even damage to your vehicle. Given the number of uninsured drivers on the road, this is a very important protection.

What is Medical Payments (MedPay) or Personal Injury Protection (PIP)?

• MedPay helps cover medical and funeral expenses for you, your employees, and your passengers if injured in an accident, regardless of fault.

• Personal Injury Protection (PIP) is similar but also covers a percentage of lost wages and other non-medical costs. In Texas, PIP coverage is automatically included in your policy unless you reject it in writing.

Is Commercial Auto Insurance required in Texas?

Yes. The state of Texas requires all drivers and businesses to carry at least a minimum amount of auto liability insurance. The current minimum liability limits are $30,000 for each injured person, $60,000 per accident for all injuries, and $25,000 per accident for property damage (often referred to as 30/60/25 coverage). However, most businesses need much higher limits to be adequately protected.

What is Hired and Non-Owned Auto Liability insurance?

This is a critical coverage for businesses that don't own vehicles but still have auto-related risks.

• Hired Auto covers liability for vehicles you rent, lease, or borrow for your business.

• Non-Owned Auto covers liability when your employees use their personal vehicles for business purposes, like running errands or visiting clients in Houston. It protects your business if your employee is at fault in an accident.

Do I need Hired and Non-Owned Auto coverage if I have a BOP?

Sometimes. Many Business Owner's Policies (BOPs) allow you to add Hired and Non-Owned Auto Liability as an endorsement. If you don't have a full Commercial Auto policy because you don't own vehicles, adding this to your BOP is an excellent and affordable way to cover your risk.

What factors determine the cost of Commercial Auto Insurance?

Many factors influence your premium, including:

• The type, age, and value of your vehicles.

• The driving records of all covered employees.

• Your industry and how vehicles are used (e.g., a local delivery van vs. a long-haul truck).

• Your garage location (rates can vary by zip code in areas like Harris County).

• The coverage limits and deductibles you choose.

• Your claims history.

How can I lower my Commercial Auto insurance premium?

You can manage your costs by:

• Hiring drivers with clean driving records.

• Implementing a formal driver safety program.

• Choosing higher deductibles for physical damage coverage.

• Paying your premium in full annually.

• Bundling your auto policy with other business insurance policies.

• Regularly reviewing your policy to ensure you're not over-insuring unused vehicles.

What is a "DOT number" and do I need one for my insurance in Texas?

A USDOT (U.S. Department of Transportation) number is a unique identifier required for commercial vehicles that haul cargo or transport passengers in interstate commerce. In Texas, you may also need a TxDOT number for intrastate commerce, depending on your vehicle's weight and what you transport. Your insurance carrier will often require this number to issue a policy if your business operations fall under these regulations.

Does Commercial Auto insurance cover tools or equipment inside my vehicle?

No. A standard Commercial Auto policy covers the vehicle itself, not its contents. To protect tools, equipment, or products you transport, you need a separate Inland Marine Insurance policy, sometimes called a Tool and Equipment Floater.

Who is covered to drive under my Commercial Auto policy?

Your policy can be set up to cover different drivers. Typically, it covers business owners and their employees. It's crucial to list all potential drivers on your policy and to check their driving records (MVRs) before allowing them to operate a company vehicle.

What is a "symbol" on a Commercial Auto policy?

Commercial auto policies use numbered "symbols" to designate which vehicles are covered for specific protections. For example, Symbol 1 offers the broadest coverage for "any auto," while Symbol 7 covers only the "specifically described autos" listed on the policy. Understanding these symbols is key to ensuring you have the right coverage.

What should I do if one of my company vehicles is in an accident?

First, ensure everyone is safe and call 911 if there are injuries. Instruct your drivers to never admit fault at the scene. They should exchange contact and insurance information with the other party, take photos of the scene and vehicle damage, get a police report number, and contact your company and our agency as soon as possible.

How do I file a Commercial Auto claim?

Contact us, your insurance agent, immediately after an accident. We will collect the necessary information—such as the date, location, description of the incident, and police report number—and report the claim to your insurance carrier to get the process started.

Do I need a special driver's license to be covered?

For most standard cars, vans, and light trucks, a regular driver's license is sufficient. However, if your employees operate larger vehicles (like heavy-duty trucks), they may need a Commercial Driver's License (CDL) to be legally compliant and covered by your insurance.

Does the policy cover me if I drive my work truck for personal errands?

Generally, yes. Most Commercial Auto policies include coverage for "permissive use," which means the policy can extend to personal use of a company vehicle as long as the business owner has given permission. It's best to confirm this with our agency.

How do I add or remove a vehicle from my policy?

Adding or removing vehicles is a simple process. Just contact our agency with the vehicle's information (year, make, model, and VIN). We can update your policy, usually on the same day, and provide you with updated ID cards.

How do I get a Certificate of Insurance for my Commercial Auto policy?

Clients often require a Certificate of Insurance (COI) as proof of coverage before you can start a job. Simply contact our agency with the name and address of the person or company requesting the certificate (the "certificate holder"). We can typically issue and send a COI to you quickly and at no cost.

Commercial auto insurance has been a game changer for our fleet. It provides peace of mind and protects our business assets effectively.

Brian H.

★★★★★

Sugar Land, TX