Commercial Auto Insurance

Commercial auto insurance is a contract between the policyholder, and an insurance company designed to provide financial protection in the event of accidents or incidents involving vehicles used for business purposes, including cars, trucks, vans, and other commercial vehicles. Because these vehicles are typically exposed to greater risks than personal-use vehicles, they require a separate insurance policy. This coverage is essential for any business owner or commercial vehicle operator, serving as a safeguard against a wide range of risks depending on the coverage selected, including collision accidents, accident-related injuries, vandalism, theft, fire, flooding, hail damage, animal collisions, and other unforeseen events that can impact not only the vehicle itself, but also business operations, productivity, and revenue.

Commercial auto insurance generally classifies vehicles according to their use and the risks associated with each category:

• Transporters (Carriers): Vehicles used to transport goods, materials, or merchandise for third parties, excluding those primarily engaged in moving services.
  
  
• Non-Transporters (Non-Carriers): Vehicles used in a variety of industries, including manufacturing, contracting, food delivery services, specialized distribution, agriculture, and similar business operations.
  
  
• Utility Vehicles: Includes private passenger vehicles used for business purposes, garage risks, public transportation vehicles, specialized vehicles, and non-owned vehicles.

• Covers property damage and bodily injury caused to others in accidents where the insured is legally responsible. In Texas, the minimum required coverage is $30,000 per injured person, up to a maximum of $60,000 per accident, and $25,000 for property damage per accident, commonly known as 30/60/25 coverage. Because commercial vehicles are often larger and may cause significantly greater damage than standard passenger vehicles, we strongly advise policyholders to consider higher liability limits to better protect business assets in the event of multi-vehicle accidents, severe injuries, or the total loss of another driver's vehicle.

• Protects against theft or damage caused by natural disasters, vandalism, and other non-collision-related losses.

• Covers the repair or replacement of the insured vehicle following an accident involving a collision with another vehicle or object.

• Covers medical expenses for the driver and passengers. Depending on the insurance company, this coverage may also extend to injuries sustained while traveling in other covered units or business-related vehicles.

• Similar to Medical Payments coverage, this option helps cover medical expenses for the insured driver and passengers. In certain situations, it may also provide benefits for lost wages and other qualifying non-medical expenses.

• Provides protection when you are involved in an accident caused by a driver who has no insurance or insufficient insurance coverage. It may also apply in hit-and-run accidents, making it critical to gather evidence and obtain witness information whenever possible.

• Covers towing expenses when the vehicle cannot be safely operated following a covered incident.

• Covers towing to the nearest repair facility. Certain heavy-duty commercial vehicles may be subject to deductibles or coverage limitations. Roadside assistance services may include flat tire changes, battery jump-starts, and other emergency roadside services.

• Reimburses the cost of a temporary replacement vehicle while the insured commercial vehicle is being repaired following a covered accident.