Who Needs Commercial Truck Insurance in Texas?

The economy in the state of Texas relies on information technology, oil and natural gas, agriculture, manufacturing, tourism, and many other large industries, including exports. In fact, total exports from Texas helped contribute to the record-setting value of U.S. goods and services exports in 2013, which reached $2.3 trillion.

As a result, trucks are widely used as a commercial vehicles for the transportation of various products in Texas.

So, who needs commercial truck insurance in Texas? Well, commercial truck insurance is mandatory for any small business or owner operator offering trucking services within the state. Therefore, if you are operating a vehicle for any business-related purposes in Texas, then you will need commercial truck insurance.

You are required to have commercial insurance if any of the following applies to you.

  1. Your truck is titled or registered to a corporation, business, or partnership.
  2. Your truck is leased or rented to others.
  3. Your truck is driven by you or your employees for business and personal use.
  4. Your truck is equipped with any of the following:
  • cooking or catering equipment
  • bathrooms
  • snowplowing equipment
  • racing equipment
  • altered suspensions
  • hydraulic lifts

Personal insurance and commercial insurance are viewed as two different things by the insurance company. This is because most businesses face more risks during their daily operations.

Additional truck insurance may also be required if your truck is used to transport passengers or hazardous materials in Texas. In fact, federal law dictates strict commercial auto insurance requirements for those types of businesses which typically transport goods and passengers from state to state. Depending on the nature of your business and how your commercial vehicles are used, rates will vary for commercial insurance.

A commercial truck insurance policy works in much the same way as your personal auto insurance policy. Coverage is provided to repair or replace a vehicle which has been damaged in an accident, and will pay the claims of any third-party injured in the accident as well.

Commercial truck insurance protects your business from the risk of liability and loss which can occur if your truck is involved in an accident.

To talk more about this or anything else, please contact us at J.E.B. Insurance Services, LLC.