Commercial Auto Insurance
Commercial Auto Insurance Information
Driving a vehicle for business purposes means exposing the business to accidents that can result in damage to company vehicles, injuries to employees, damage to other vehicles and property and injuries to others. If the business is not properly insured, it could be responsible for all those costs. Commercial auto insurance—which provides different coverage than personal auto insurance—is designed to help the business afford the costs of such issues.
At Pan American Insurance, we strive to help every client get quality insurance products customized to their needs. If you are looking for commercial auto insurance, you can trust us to guide you to the perfect solutions.
What Is Commercial Auto Insurance?
Texas law requires all drivers to carry auto insurance. However, standard auto insurance does not cover the losses a business might face if a problem arises for one of its vehicles or drivers. Instead, commercial auto insurance will offer more appropriate coverage to help companies pay the costs of these losses. It enables businesses to move on from these accidents without a significant financial strain.
Who Needs Commercial Auto Insurance?
Commercial auto insurance covers businesses that own or operate vehicles. A company might need this coverage if it:
Owns a single vehicle or fleet of vehicles
Allows employees to drive their personal cars for business purposes
Provides employees with vehicles that they drive both during and after business hours
Additionally, certain private vehicles qualify as commercial if they have certain weights, horsepower or other unique features. For example, if you buy a dump truck, then you might need commercial auto insurance even if you only plan to use the vehicle privately. The vehicle’s weight may disqualify it from coverage under a personal auto policy.
What Does a Commercial Auto Policy Cover?
Coverage included in your commercial auto insurance policy may include:
Liability insurance—When an accident is the insured driver’s fault, this coverage helps pay for the property damage or bodily injuries of others (e.g., other drivers).
Hired/Non-owned auto liability insurance—This liability coverage kicks in when someone drives a vehicle not owned by the business.For example, it can come in handy when an employee drives their personal vehicle for business and then causes an accident.
Collision insurance—Following a wreck, this coverage can pay to repair company vehicles.
Comprehensive insurance—This coverage pays for vehicle damage from mishaps unrelated to wrecks, such as weather damage, fires, theft or vandalism.
Medical payments (MedPay)/Personal injury protection (PIP)—If you get hurt in a wreck, this coverage can pay your medical bills. Sometimes, the benefit will cover costs like lost income.
Uninsured/Underinsured motorist (UM/UIM)insurance—This coverage insures the policyholder against damage caused by someone else who doesn’t have liability coverage. If you are the victim of a hit-and-run, this coverage can pay for your damage costs from your own policy.
Additionally, other policies and coverage endorsements might help you expand your benefits, including:
How Much Commercial Auto Insurance Coverage Do I Need?
To get the right commercial auto insurance policy, you must carry all coverage required by Texas law. The state’s minimum mandatory coverage limits for all drivers are:
Bodily injury liability coverage—$30,000 per person/$60,000 per accident
Property damage liability coverage—$25,000 per accident
Additional liability insurance might also be required depending on the scope of your driving operations. Also, vehicle lenders might require policyholders who finance their vehicles to buy collision, comprehensive or gap insurance.
You can benefit from carrying more coverage than minimum mandatory coverage. If you have higher coverage limits, you will have more assistance available following a claim. Higher coverage limits can go a long way towards minimizing your company’s financial losses following vehicle mishaps.
What Does Commercial Auto Insurance Cost?
Commercial auto insurance premiums can vary based on numerous factors, including the:
Businesses in El Paso and beyond can rely on Pan American Insurance to get affordable commercial auto insurance. With our help, you’ll be able to qualify for maximized savings on the policy of your choice.