Texas requires commercial auto insurance any time a vehicle is used primarily for business. The line between personal and commercial is fuzzier than most people realize — and getting it wrong often means a denied claim.
When commercial coverage is required
- Vehicle is titled to a business entity
- Vehicle is primarily used for business deliveries, sales calls, or job sites
- Vehicle hauls business equipment or supplies
- Driver employees of someone else's business
Texas minimum commercial limits
Standard commercial auto in Texas starts at the same 30/60/25, but many industries require higher minimums:
- For-hire trucking under 10,001 lbs intrastate: $300,000 CSL
- Hazmat carriers: $1,000,000 to $5,000,000 depending on materials
- Federally registered carriers (interstate): minimum $750,000 CSL
Personal vs commercial pricing
Commercial policies cost 30–80% more than personal policies for the same vehicle. The premium reflects higher annual mileage, multiple drivers, and broader exposure.
Common gotchas
- Personal policy on a vehicle with company name on the side — coverage often denied
- Hired/non-owned auto exposure when employees use personal vehicles for work
- Failure to disclose tool/equipment storage
Frequently asked questions
When do I need commercial auto insurance in Texas?
Any time the vehicle is titled to a business or used primarily for business purposes.
Are Texas minimum limits enough for a small business?
Rarely. Most small business owners carry 500/500 or $1M CSL to protect business assets.
This article is for general information only and is not legal or tax advice. For guidance specific to your situation, talk to a licensed Texas insurance agent. Ready to put it into practice? Get a free quote or request a policy review.