Over 12 years writing about insurance and personal finance
Emily is a Plutus Award-winning freelance writer and former educator who makes complex financial topics easy to understand. She specializes in the science behind money habits and has written for outlets like The Huffington Post, Business Insider, and The Washington Post.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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Texas state law requires commercial auto insurance for any vehicle used for business purposes, from food trucks to ridesharing vehicles. On average, commercial insurance costs between $260 and $1,420 per month in Texas.
Since a business auto policy works differently from personal auto insurance, understanding the ins and outs of commercial auto insurance can help you find the best auto policy for your business’s needs.
Commercial auto insurance companies in Texas must offer uninsured motorist coverage and personal injury protection, but you can choose to opt out of this coverage.
State Farm, Progressive, and Travelers have the best commercial auto insurance in Texas.
Commercial auto insurance premiums may be tax deductible.
Commercial car insurance requirements in Texas
Texas requires anyone driving for business activities to carry commercial car insurance, including workers using personal vehicles for business purposes, such as ridesharing.
$30,000 per person and $60,000 per accident in bodily injury liability coverage
$25,000 in property damage liability insurance coverage per accident
Experts recommend purchasing coverage above these minimum liability limits.
Commercial auto policies in Texas must also include uninsured/underinsured motorist coverage (UM/UIM) and personal injury protection (PIP), but businesses can sign a waiver to reject them.
Unless you specifically opt out, your commercial car insurance policy will include these coverages:[1]
Uninsured/underinsured motorist insurance: This coverage helps pay for damage to your work vehicles or for medical expenses in an accident with a driver who doesn’t have enough coverage or any coverage at all.
Personal injury protection: This coverage can help pay for medical expenses if there’s an accident while driving for business purposes. If the injury is unrelated to an accident — even if it occurs in a vehicle — workers’ compensation insurance covers the expenses, not PIP.
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Optional commercial auto insurance coverages
To minimize their risk, Texas business owners and professional drivers may want to add the following optional coverages to their commercial auto insurance:[2]
Collision
If you or your employee is in an at-fault accident, collision coverage can help pay for property damage to your vehicle. This doesn’t cover the contents of your work vehicles, such as work equipment or items for delivery.
Comprehensive
If something other than a collision — such as a falling object, theft, or extreme weather — damages your vehicle, comprehensive coverage will help pay for repairs.
Hired and non-owned auto (HNOA)
Sometimes a business uses hired or non-owned vehicles, like rental cars on business trips or a rented pickup truck to move work equipment. HNOA coverage can offer liability coverage when your company uses these kinds of vehicles.
Roadside assistance
If one of your work vehicles breaks down, roadside assistance coverage can offer you access to 24/7 assistance, which often includes roadside repairs or towing. But roadside coverage may have some limits depending on the size, type, and travel radius of your work vehicles.
Rental reimbursement
Renting another vehicle while yours is in the shop isn’t so easy for ice cream vendors, food trucks, and other industries that have specialized work vehicles. Rental reimbursement coverage can help you afford the cost of renting a replacement, and some truck insurers will even help you locate a suitable rental.
Cargo insurance
The trucking industry may also call this insurance motor truck cargo coverage. This kind of commercial auto insurance offers business liability coverage to for-hire truckers in case the goods they’re driving are damaged, lost, or destroyed during the process of transportation.
Do you need commercial car insurance in Texas?
Anyone who uses a vehicle for business purposes in Texas probably needs commercial car insurance. Here are some examples of businesses that need commercial insurance.
Any business with multiple work vehicles, such as a:
Towing company with more than one tow-truck vehicle
Florist with a fleet of delivery vehicles
Taxi company with both taxis and limousines
Contractor with multiple pickup trucks
Trucking company with a fleet of box trucks, cargo vans, and other large work vehicles
Any workers using personal vehicles for business purposes, including:
Drivers of ridesharing vehicles
Real estate agents taking clients to properties
Professionals in the construction trades driving supplies to jobsites
If you drive for business activities, you need commercial auto insurance. That’s partially because you spend more time in the car, which increases your chances of an accident. But having a business auto policy will also better protect your assets in case of a lawsuit.
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Best commercial car insurance companies in Texas
Getting insurance quotes from more than one company is the best way to find the right commercial car insurance company for your business’s needs. To help you with your search, here are three of the best commercial car insurance companies available in the Lone Star State.
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
9.3 /10
4.1
Best choiceBased on 11,563 verified guest reviews and ratings
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
How drivers feel about State Farm
Customers appreciate the insurer’s excellent customer service and personal attention but dislike the high prices and frequent rate increases. They also express frustration with the claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Customer service
Competitive rates
Discounts for safe drivers
Reviews (6,147)
William
Verified Review
My Buzz on State Farm
Reviewed in Minnesota on September 2025
Shop for the same coverage for less money. State Farm is becoming more bottom-line oriented and less concerned about the value to the customer.
Mike
Verified Review
State Farm - Not the Worst
Reviewed in Florida on September 2025
Withstands historic losses with moderate price increases without major cancellations in Florida. Cancels policies in areas of highest risks from potential loss.
Deloy
Verified Review
Old, established customers get no breaks!
Reviewed in Utah on September 2025
I’ve been with State Farm for twenty-three years and have always had both multiple cars/trucks and home insurance coverage from them. For a while, I even had motorcycle coverage. We have never had issues with State Farm until the past two years. Their pricing has been very good, but our rates have been increased almost monthly! Their rates have gone up in this time period by thirty-plus percent! I’m now, after sixty-plus years, looking at lots of less expensive options!
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
657
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.84
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
Even in the giant state of Texas, you can likely find a local State Farm agent. If working with an agent in person is important for your business, State Farm might be a good option.
Business owners can expect personalized service while constructing the precise policy they need. The insurer’s full list of commercial auto coverages will allow you to get the right protection for your work vehicles and employees.
Pros
Many local Texas agents
Customizable policies
AM Best financial strength rating of A++ (Superior)
Cons
Must manage policy through an agent
Higher-than-average number of customer complaints with the National Association of Insurance Commissioners (NAIC)
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
622
IQ Score
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.7 /10
How drivers feel about Progressive
Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
How drivers feel about Progressive
Customers appreciate the insurer’s good customer service and initial affordability but dislike the consistent price increases and complex claims process.
AI-generated from the text of verified reviews collected by Insurify
Best For
Competitive rates
Easy buying process
Telematics program
Reviews (7,069)
Dennis
Verified Review
No claim experience
Reviewed in Louisiana on September 2025
They keep me informed on how I can save money.
Chris
Verified Review
Not impressed
Reviewed in Michigan on September 2025
I'm paying $1,300 for full coverage every 6 months for a car valued at $2,000.
Sheila
Verified Review
Rates
Reviewed in Rhode Island on September 2025
I don't have any issues other than the rates going up.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
622
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0.97
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A+
Why we picked this company
Progressive is one of the business auto insurance companies with a telematics program, and its Smart Haul program can reportedly save new truck customers an average of $1,056 each year.
Progressive’s Snapshot ProView program for fleet management offers a minimum 5% discount. If your business has a small travel radius and your employees’ collective driving record is good, this could be a great way to save on premiums.
The Insurify Quality (IQ) Score uses more than 15 criteria to objectively rate insurance companies on a one-to-ten scale. The Insurify editorial team researches insurer data to determine the final scores.
8.5 /10
4.7
Best choiceBased on 926 verified guest reviews and ratings
How drivers feel about Travelers
Customers appreciate the insurer’s communicative customer service and efficient claims process. But they’re dissatisfied with the consistent and sometimes significant price increases, even for those with clean driving records.
AI-generated from the text of verified reviews collected by Insurify
Best For
Numerous discounts
Gap insurance
Rideshare coverage
How drivers feel about Travelers
Customers appreciate the insurer’s communicative customer service and efficient claims process. But they’re dissatisfied with the consistent and sometimes significant price increases, even for those with clean driving records.
AI-generated from the text of verified reviews collected by Insurify
Best For
Numerous discounts
Gap insurance
Rideshare coverage
Reviews (477)
David
Verified Review
Car insurance: A necessity
Reviewed in New Jersey on August 2025
It's fine, but every year they increase too much.
Salvatore
Verified Review
Travelers have the best rates
Reviewed in Florida on August 2025
Best rates for auto insurance by far for myself and my wife with our situation and where we live. Rates don't get much better if we bundle our home, so I have a separate policy with a different insurer for my home. Customer service is almost non-existent; 95% of any contact has been through the app or online. I haven't needed to make any claims yet, so I can't comment on that aspect. I have shopped coverage with the competition and have found them to cost more and offer less coverage. So I'll put up with the lack of agent contact to save on premium and stay with Travelers for auto insurance.
J.D. Power data measures overall customer satisfaction and claims satisfaction based on a 1,000-point scale.
616
NAIC Index
Average amount of customer complaints relative to competitors on a 0-5 scale. A lower score represents fewer complaints.
0
A.M. Best
A.M. Best analyzes an insurer’s financials, operating performance, business profile, and other factors to generate an opinion-based rating of a company’s financial and credit strength. Ratings range from A++ (exceptional) to D (poor).
A++
Why we picked this company
You can protect your work vehicles with a policy from Travelers, which includes add-ons for auto lease gap, employee hired, and blanket additional insured coverage. But Travelers shines in its additional risk management resources.
This insurance company provides risk management educational resources to business customers, including cost-effective risk assessment and management tools, workplace safety education and training, and online risk-control tools and classes.
Pros
Access to risk-control educational resources
Online claims process
AM Best financial strength rating of A++ (Superior)
Cons
Quotes only available through an agent
Unspecified exclusions to standard policy
Doesn’t list any available discounts
Our editorial team analyzed regional and national auto insurance companies that sell commercial policies in Texas to assess which offer the best rates, coverage options, customer service, and savings to drivers. We prioritized competitive rates, 24/7 customer service, and specialty or supplemental coverages.
Average cost of commercial car insurance in Texas
In Texas, the average monthly cost of commercial car insurance ranges from $260 to $1,420, while the national average ranges from $220 to $1,200.
Insurance premiums depend on a number of factors, including the type of business, the size of your vehicle fleet, your coverage needs, and where you drive and park your work vehicles. The size, age, and type of work vehicles, as well as the driving record of every driver in your workforce, can also affect your premiums.
What business owners should know about commercial auto insurance in Texas
While gathering commercial auto insurance quotes, remember these important considerations:
Prepare for premium costs. Business auto policies cost more than personal auto policies because there’s a higher risk. If you’re driving for work, you spend more time behind the wheel. Commercial auto insurance also typically has higher liability limits to protect your business assets from possible lawsuits.
Assess your risk level. Figuring out your coverage needs requires you to think about the size of your fleet, the driving record and experience of your employees, the purpose of your work vehicles, as well as their age, condition, and location.
Know the exclusions and limitations. Commercial auto policies may exclude or limit coverage. For example, your policy might not cover the work equipment in your cargo van or extend coverage to a nonemployee driver.
Learn the claims process. While it may be similar to the claims process for a personal auto insurance policy, make sure you ask your insurer to guide you through the claims process so you don’t miss anything.
Understand potential tax implications. Many businesses may be able to deduct commercial auto insurance premiums from their taxes. Keep your policy documents and receipts for your premiums so you can discuss them with your tax professional.
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How to get commercial car insurance in Texas
When you’re ready to purchase commercial car insurance in Texas, follow these steps:[3]
Reach out to an independent insurance agent. Contact an independent insurance agent to help build a customized coverage profile and get quotes.
Find the documents you need. The application process will require several documents about your business’s work vehicles, including vehicle types and uses, vehicle registration, and ownership information. You’ll also need copies of your employees’ driver’s licenses and driving records, and any current insurance information.
Decide what coverages you need. Choosing the appropriate coverage level and liability limits is possibly the most important part of this process. Don’t assume that decreasing coverages or liability limits is the best way to cut costs, since it could leave you and your business vulnerable in case of an emergency.
Buy your policy. Once you purchase the business auto policy that’s right for you, your insurance company will send a certificate of insurance that summarizes your coverage. In some industries, businesses must display this certificate to do business.
Commercial auto insurance in Texas FAQs
If you’re looking for more information about commercial auto insurance in Texas, the answers to the following questions can help.
How much does commercial car insurance cost in Texas?
In Texas, the average monthly cost of commercial car insurance ranges from $260 to $1,420, while the national average ranges from $220 to $1,200. But the premiums for any one business will vary depending on their specific vehicles, location, and needs.
What is considered a commercial vehicle in Texas?
Texas state law considers any vehicle used for commercial purposes, including ridesharing vehicles, as a commercial vehicle.
What are the requirements for commercial vehicle insurance in Texas?
Businesses must carry a minimum of $30,000 per person and $60,000 per accident in bodily injury liability coverage and $25,000 in property damage liability coverage per accident in commercial vehicle insurance in Texas.
Texas also requires insurance companies to offer uninsured motorist coverage and personal injury protection as optional coverages, but businesses can refuse those coverages by signing a waiver.
Which company has the best commercial auto insurance in Texas?
State Farm, Progressive, and Travelers offer some of the best commercial auto insurance options in Texas, according to Insurify data. But the best commercial auto insurance in Texas will vary from one company to another, so it’s important to compare companies.
Emily Guy Birken is a former educator, lifelong money nerd, and a Plutus Award-winning freelance writer who specializes in the scientific research behind irrational money behaviors. Her background in education allows her to make complex financial topics relatable and easily understood by the layperson.
Her work has appeared on The Huffington Post, Business Insider, Kiplinger's, MSN Money, and The Washington Post online.
She is the author of several books, including The 5 Years Before You Retire, End Financial Stress Now, and the brand new book Stacked: Your Super Serious Guide to Modern Money Management, written with Joe Saul-Sehy.
Emily lives in Milwaukee with her family.
Emily has been a contributor at Insurify since October 2022.
Sara Getman is an Associate Editor at Insurify and has been with the company since 2022. Prior to joining Insurify, Sara completed her undergraduate degree in English Literature at Simmons University in Boston. At Simmons, she was the Editor-in-Chief for Sidelines Magazine (a literary and art publication), and wrote creative non-fiction.
Outside of work, Sara is an avid reader, and loves rock climbing, yoga, and crocheting.
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