Plumbing requires a lot of travel. When driving back and forth between client houses, it’s important to make sure you’re covered with auto insurance. Many people think that their personal auto insurance will cover them, but this isn’t the case. If you or your employees are conducting business while driving, you need commercial auto insurance.
Does Texas Require Commercial Auto Insurance?
Texas requires most businesses to carry some amount of commercial auto insurance. These requirements depend on the vehicle size and capacity. For example, vehicles that carry more than 16 passengers require at least $500,000 in liability coverage while vehicles that carry goods may need to carry $300,000-$500,000 in liability coverage. Check with your state and speak with an insurance agent about the requirements in your area.
Does Commercial Auto Insurance Cover Personal Use?
While personal auto insurance won’t cover work use, the same isn’t in reverse. In general, your commercial auto insurance policy will cover personal use for the insured person at the wheel. It’s important to make sure your employees are on the policy.
What Does Commercial Auto Insurance Cover?
Commercial auto insurance provides a lot of the same coverage that personal auto insurance does. This includes:
- General liability: General liability provides protection in the case of bodily injury or property damage due to your driver causing an accident.
- Bodily injury: This coverage pays medical expenses for the victim in case your driver causes an accident.
- Personal injury protection (PIP): This coverage pays for medical expenses no matter who caused the accident.
- Uninsured/underinsured motorist: Uninsured motorist provides coverage in case you have an accident with a driver without insurance.
- Comprehensive: Comprehensive coverage pays for damages that arise from incidents that don’t involve collision. This involves fire, wind, falling rocks or trees, etc.
- Collision: Collision coverage pays for damages that arise from a collision with another car or object.
- Blanket insured protection: Anyone who drives for your business can be insured beneath your policy with blanket insured protection.
- Loading and unloading coverage: This coverage helps if loading or unloading a business vehicle results in injury or property damage.
Who is Covered Under My Commercial Auto Insurance Policy?
There is almost no limit to who you can place beneath your commercial auto insurance policy. If you have several plumbers driving vehicles owned by the business, your commercial auto insurance policy may automatically cover them so long as those vehicles are listed beneath your policy. You may also consider whether your vehicles qualify as a fleet or not.
Is Commercial Auto Insurance Cheaper than Personal Auto Insurance?
The cost difference between commercial auto insurance and personal auto insurance depends on a lot of different factors. In some areas, commercial auto insurance may be more expensive. This is because the insurance company must consider the industry in which the vehicle is being used and the fact that there is usually more than one driver. There are instances where personal auto insurance is cheaper, however. It depends widely on the individuals, the vehicles being insured, the state and more. The average cost per vehicle for commercial auto insurance is around $750-$1,200 a year while the average cost of personal car insurance is around $1,502.
In Texas, you are required to carry commercial auto insurance regardless. Even if personal auto insurance is cheaper than commercial in your area, personal auto insurance most likely won’t cover you when performing work duties. Car accident bills can be incredibly expensive and one bad claim can plummet your plumbing business. Make sure to speak with an agent about insuring your work vehicles today.
Also Read: Will Commercial auto Insurance Cover a Replacement Vehicle While Yours is in the Shop?