If you own a vehicle for business use, or if you use your personal car for business purposes, then a standard car insurance policy likely won't cover you. Commercial auto insurance will take its place.

A commercial auto policy includes specialized coverage that accounts for the fact that a business vehicle poses a financial risk to the business. By having coverage, the business can weather the financial hardships that might result from car wrecks or other vehicle mishaps.

Not everyone who drives for business needs commercial auto insurance. If you only commute to work, then you won't need a policy. However, plenty of other vehicles and drivers need coverage, such as:

• Vehicles owned by the business, including those provided to employees for full-time use
• Fleet vehicles and company-branded vehicles
• A personal car used significantly for business purposes
• Certain private vehicles that meet certain weight qualifications
• Vehicles with Texas commercial registration

You might wonder what coverage specialty vehicles need, or if your privately-owned vehicle needs a policy. The important thing to remember is that you must list the business as an insured party on the commercial auto policy. Your Rising Star Insurance agent is happy to work with you to make the right choices on coverage.

Most commercial auto policies offer several types of protection:

• Liability Insurance: When drivers are found at-fault for wrecks, they might have to pay for the injuries or property damage done to others. So, if a company driver hits another car, then commercial auto insurance can help pay for the other driver's medical bills or vehicle repairs.
• Collision Insurance: After a wreck, this coverage can pay to repair the commercial vehicle.
• Comprehensive Insurance: Vehicle damage that does not come from wrecks has coverage. Your policy might pay for fire, theft, vandalism, weather, hail and similar damage.
• Uninsured/Underinsured Motorist Insurance: Another driver might be found at-fault for a wreck. However, they might not have liability insurance. This coverage can help the business pay for its losses out of its own policy.
• Medical Payments Insurance: If a commercial driver gets hurt in a wreck, then this coverage can pay for that person's medical expenses. Further coverage called personal injury protection can pay for such related expenses as lost income.

You can also augment your commercial auto coverage with other policies:

• Inland Marine Insurance: This coverage insures cargo and business equipment in transit.
• Hired/Non-Owned Vehicle Insurance: If you rent a vehicle or use a personal vehicle for coverage, then you might need this coverage for your losses.
• Umbrella Liability Insurance: Buying an umbrella policy adds extra liability limits on top of your existing commercial liability policies.

By law, all Texas drivers must have minimum levels of liability insurance. Commercial policies offer combined single limits. Depending on the type of commercial vehicle you drive, your coverage requirements might vary:

• Vehicles Transporting Household Goods: $300,000
• Buses that Carry 15 – 27 Passengers: $500,000
• Buses that Carry 27+ Passengers: $5 million
• Commercial School Buses: $500,000
• Farm Trucks (48,000 lbs or more): $500,000
• Commercial Vehicles Transporting Household Goods, or weighing >26,000 lbs: $500,000
• Commercial Vehicles that carry certain hazardous materials: $1 million or $5 million, depending on weight and the materials carried

You can increase these liability limits on your own policy to more effectively meet your coverage needs.

Various factors might influence the cost of your commercial auto insurance, including:

• Your coverage requirements
• Vehicle values
• Your chosen coverage and deductibles
• The business' claim history
• What materials you transport
• Driver demographics (age, sex)

By using our comprehensive research and policy comparison tool, our agents can help you choose coverage that balances your needs with affordability. We can also determine if you qualify for any policy savings based on factors like your vehicles' safety equipment. Therefore, you'll wind up paying a fair price for the policy you eventually choose.