Texas-based trucking companies must have commercial trucking insurance that meets the state’s minimum requirements. Trucking operations must also carry insurance required by the Federal Motor Carrier Safety Association (FMCSA).

How Much Insurance Does a Trucking Company Need?

The FMCSA requires trucking companies to carry public liability insurance, which provides payment assistance for losses incurred by third parties when a truck driver causes an accident. The minimum amount of public liability coverage you must carry varies depending on numerous factors, including the type of freight a driver typically hauls.

Texas requires all businesses that use vehicles to carry a minimum amount of commercial auto liability coverage. Insurers are required to provide personal injury protection (PIP) coverage, which the business can accept or decline. Plus, if you finance vehicles, your lienholder requires collision and comprehensive coverage to help repair or replace a truck after a damage-causing accident.

·        Liability insurance helps pay for third-party bodily injuries and property damage after an at-fault accident.

Your agent can help tailor your trucking insurance policy to comply with federal and state requirements and your lienholder’s rules.  

Optional Commercial Trucking Insurance

Depending on your vehicle’s value, you may purchase more commercial auto coverage than the minimum amount required by Texas. Some insurance types are designed to provide financial protection after a damage-causing accident, including:

·        Collision insurance helps pay for damages after an accident involving another vehicle or a collision with an object. 

·        Comprehensive insurance helps pay for damages after a non-collision-related incident or accident where damage is caused by fire, weather or acts of vandalism.  

Your agent may recommend other appropriate insurance coverage, including:

·        Personal injury protection (PIP) helps cover medical costs after an accident, regardless of who is at fault. Insurance companies are required to offer PIP, but businesses can choose to reject this coverage in writing.

·        Medical payments (MedPay) helps cover accident-related medical and funeral bills for the truck driver and passengers, but coverage varies according to the insurer’s rules.

·        Uninsured/underinsured motorist coverage helps pay to replace or repair a tractor trailer if the party responsible for the accident doesn’t have appropriate liability insurance coverage.

·        Non-trucking insurance provides coverage for the truck driver when the tractor trailer is in use for non-business purposes.

·        Bobtail insurance helps cover property damage or bodily injury when the driver does not have a trailer attached to the tractor.

·        Trailer interchange coverage helps pay for all liabilities caused by or to a non-owned trailer if both parties have signed a trailer interchange agreement.

·        Non-owned trailer insurance helps pay for damage to a trailer not owned by the trucking company but in its control when it is damaged.

How to Get Trucking Insurance

Commercial trucking insurance is a collection of highly customizable policies that help provide appropriate coverage for the risks and perils faced by your trucking company.

It’s crucial to understand your current trucking insurance coverage and make sure it satisfies state and federal requirements. Contact Raymond Longoria Insurance in Mission, Texas, to learn more about your trucking insurance options and get started building a policy tailored to meet the needs of your organization.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.