Commercial Auto Insurance Minimum Requirements in Texas

Determine the Required Amount of Coverage

Once you decide which type of policy you're getting, you'll meet with an insurance agent and discuss the following:

• Who owns the vehicle(s)

• Weight of the vehicle(s)

• Usage of the vehicle(s)

• Liability limits requirements

Texas has set a minimum amount of liability coverage, and that's 30/60/25. That means each vehicle you own is covered for the following amounts:

• $30,000 bodily injury coverage for one person in a single accident

• $60,000 bodily injury coverage total per accident

• $25,000 property damage coverage per accident

If you need more information about the choice between personal and commercial auto liability coverage, you can call TxDOT to discuss your specific situation.

Purchase a Commercial Policy

There are many insurance providers in Texas, so you have quite a selection to choose from. Some providers specialize solely in commercial auto insurance, and others offer a wide variety of policy types, including the commercial policy you need.

Proof of Insurance and Financial Responsibility

Texas lawmakers have instituted a program with TxDOT―and other state agencies―called TexasSure. This program streamlines the insurance verification process for TxDOT, requiring state insurers to electronically submit weekly reports of new policies, cancellations, and non-renewals.

Electronic Reporting

Depending on what type of commercial auto insurance you get, your insurance provider might or might not submit your information electronically. This is simply because the TexasSure program matches VIN numbers to policies. If your commercial policy is a blanket policy―meaning it covers any and all vehicles for your business without designating each specific vehicle on its own―it will not include VIN numbers of the insured vehicles and therefore cannot be sent electronically.

Talk to your insurance provider to confirm that the information was sent by other means. If it wasn't, you can easily send in the information yourself.

Electronic reporting makes it even more important for you to maintain insurance coverage. If it lapses for any reason, TxDOT could find out immediately.

Penalties for Failure to Maintain Financial Responsibility

Letting your insurance lapse, especially on a commercial policy, exposes you and your business to great financial risk. It also brings on other penalties, including suspension of your driver's license and the registration of each uninsured vehicle.

If you feel the suspension was done in error (for example, you had coverage but TxDOT had no proof of insurance for you), you can appeal within 20 days. Contact TxDOT at the number listed on your notice of suspension.

A second insurance lapse will cause your vehicles to be impounded for 180 days. You'll also have to pay impoundment fees of $15 per vehicle, per day.

Reinstatement of Registration and Driver's License

To lift the suspension(s):

• Provide proof of current liability coverage.

• Pay reinstatement fees from $175 to $350 per vehicle.