Starting a business in Texas requires comparing insurance costs before you can start earning revenue. It's important not to confuse personal auto insurance with commercial auto insurance.
A vehicle used for commercial purposes, such as deliveries, should be covered by a commercial auto insurance policy. If the delivery commands a transportation fee, you'll need a commercial instead of personal auto insurance policy. Other scenarios that require you to carry this mandatory coverage include any use of company vehicles by employees and regular business trips. If your company uses vehicles for long-distance travel, you'll probably need to raise your coverage limits.
The type of commercial auto insurance in Texas you choose should be based on the type of vehicles you use and the purpose for which you use them. The more your employees drive company vehicles, the higher insurance you'll pay. Here are some of the considerations you should examine before signing a policy:
Be aware that each state mandates commercial auto insurance as a requirement and that penalties can be extensive. You'll need to carry minimum liability coverage based on your state's insurance laws. Texas requires the following minimum liability coverages:
Securing the right commercial auto insurance in Texas is essential for your business to move forward. It should be tailored to reflect your firm's fleet size, along with how often and how far your employees drive. Contact us at Anderson Insurance Affiliates for more information on getting the right auto coverage for your business.
