Every business has a budget. And if you own a company vehicle, you’ll have to factor in that cost. Maintenance, fuel and of course, commercial auto insurance, will play a role in how much money you put into your vehicle. Since Texas requires almost everyone to carry auto insurance, you can’t get around this rule. What protection do you need? What costs can you expect? How can you make your policy affordable?

Commercial auto insurance costs will vary based on a lot of different factors. Even so, business owners can influence how much policies will impact their checkbooks.

Texas’ Commercial Auto Requirements

Business drivers are still drivers. So, they need to insure their vehicles along the lines of standard insurance law. Texas requires drivers to carry liability coverage valued, at minimum, at

• $30,000 bodily injury coverage per person, per accident
• $60,000 maximum bodily injury coverage, per accident
• $25,000 property damage coverage per accident

Still, most commercial drivers need more coverage, including

• Higher liability policy limits, in case you harm someone else in an accident
• Uninsured/underinsured protection for personal damage caused by a hit-and-runs or drivers without appropriate coverage
• Collision insurance for damage to your vehicle following wrecks
• Comprehensive coverage for vehicle damage caused by non-accident hazards like fires or theft

Commercial auto policies will come with special limits, exclusions and coverage rules based on your ownership. It will specifically account for the business’s stake in the vehicle. How will this affect policy costs?

Typical Commercial Auto Insurance Costs

Commercial auto policies will need to address whether you own a vehicle specifically for business, or use a personal vehicle for your work. They’ll also need to account for localized risks, not to mention the value of the vehicle. As a result, your policy’s costs will likely vary from others'. However, you’ll always face standard costs like your premium and deductible.

• Your premium is the cost of your policy. Most Texas drivers pay, on average, around $135/month for coverage. Ask your agent to compare different policies to find the most affordable coverage.
• The deductible is your financial responsibility for damage, before a policy will pay. If you have a $500 deductible, you must pay that towards a car repair bill before your insurance pays the rest. You can often adjust your deductible to meet your needs.

At the end of the day, you want to pay the most affordable price for your commercial auto policy. Ask your Texas agent about how you can apply discounts and other policy savings to your packages.