Top Commercial Insurance Companies in Texas (2024)
The top commercial insurance companies in Texas are Chubb, Liberty Mutual, and Travelers based on market share and employee review. If you need commercial insurance coverage in Texas, read our guide to find the best provider and use our free comparison tool to compare quotes from local Texas commercial insurance companies for free.
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in life insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading...
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UPDATED: Jan 8, 2024
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UPDATED: Jan 8, 2024
It’s all about you. We want to help you make the right coverage choices.
Advertiser Disclosure: We strive to help you make confident insurance decisions. Comparison shopping should be easy. We are not affiliated with any one insurance provider and cannot guarantee quotes from any single provider. Our insurance industry partnerships don’t influence our content. Our opinions are our own. To compare quotes from many different companies please enter your ZIP code on this page to use the free quote tool. The more quotes you compare, the more chances to save.
On This Page
Overview:
- Chubb, Travelers, and Liberty Mutual are the top three commercial insurance carriers in Texas
- Commercial insurance coverage available includes commercial auto, general liability, and commercial property
- Commercial insurance rates are specific to each business and difficult to estimate
Finding the top commercial insurance companies in Texas can be a confusing subject. For example, when it comes to commercial auto insurance, there is a fine line between what is covered by a commercial policy versus personal insurance policies. And for Texas residents, there are a lot of different commercial insurance companies to choose from.
If you aren’t sure where to find the commercial insurance company with the best rates in Texas, you’ve come to the right place.
Our guide covers everything, from the basics of commercial insurance to who are the top 10 commercial insurance carriers in Texas. If you’re wondering who needs commercial general liability insurance, or are having trouble deciding what kind of commercial insurance you need, keep reading to learn everything you need to know about finding commercial insurance coverage from the best commercial insurance carriers in Texas
If you need to find commercial insurance companies in Texas, enter your ZIP code in our free tool.
The Top 10 Commercial Insurance Companies in Texas
What insurance companies are operating in Texas, and which are the best for commercial coverage? Based on the findings above, and after comparing market share, employee reviews, and each insurers’ financial position for the future, here are the 2018 top 10 commercial insurance companies in Texas:
| Insurance Companies | 2018 Rank | 2017 Rank | 2016 Rank |
|---|---|---|---|
| Chubb | 1 | 3 | 1 |
| Travelers | 2 | 4 | 4 |
| Liberty Mutual | 3 | 2 | 2 |
| AIG | 4 | 1 | 3 |
| Texas Mutual Insurance Co. | 5 | 5 | 5 |
| CNA Financial Corp. | 6 | 6 | 7 |
| Zurich | 7 | 7 | 6 |
| Progressive | 8 | NA | NA |
| Berkshire Hathaway Inc. | 9 | NA | NA |
| The Hartford | 10 | 9 | 8 |
The top five insurance companies in Texas remain the same, just swapping places as Chubbs and Travelers moved into the top two spots over Liberty Mutual and AIG. There are some newcomers to the top 10 list, as Progressive and Berkshire Hathaway Inc. both entered the top ten in 2018. Keep in mind these aren’t the top-rated insurance companies necessarily, just the most frequently used in the Lone Star State.
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Who is the best commercial insurance company in Texas?
Just because a company is one of the most used insurance providers in the state doesn’t mean it’s automatically one of the top commercial auto insurance companies.
We want to go through ratings of the top commercial insurance companies in Texas and major Texas insurance groups to see how financially sound they are, as well as what their customers think of these companies.
Who are the top three insurance companies? Stick with us to see who is the best commercial insurance in Texas.
Understanding the history of the best commercial insurance companies will help you choose one. In this section, we will go over past market shares, company advertising, involvement in the community, and more. All of these factors will help you decide if a commercial insurance company has a strong enough future ahead of it to provide you with the service and values you want.
Best Commercial Insurance Company by Market Share
The first aspect we want to dive into is market shares. We want to make sure the top commercial carriers are growing their market shares or at least steadily maintaining the same amount. Below is a list of insurance companies in Texas ranked by market share.
Top Texas Commercial Insurance Companies' 3-Year Market Share Growth
| Insurance Companies | 2016 | 2017 | 2018 |
|---|---|---|---|
| Chubb | 5.1 | 4.9 | 4.9 |
| Travelers | 4.9 | 4.8 | 4.8 |
| Liberty Mutual | 5.0 | 4.9 | 4.7 |
| Texas Mutual Insurance Co. | 4.2 | 4.2 | 4.3 |
| CNA | 3.9 | 3.9 | 3.8 |
| Zurich | 3.9 | 3.8 | 3.7 |
| Progressive | NA | NA | 2.9 |
| Berkshire Hathaway Inc. | NA | NA | 2.6 |
| The Hartford | 2.6 | 2.5 | 2.4 |
Texas Mutual Insurance Company was able to grow their market share over three years while the other top companies sustained minimal loss over the same three year period.
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Best Commercial Insurance Company by Position for the Future
All of the top commercial companies are positioned well for the future. They have decent market shares, and most of them have increased their shares over the years. While a few companies have seen decreases, the drops in market share weren’t astronomical.
Financial ratings also show that the companies are financially solid, as long as economic conditions remain favorable. Customer satisfaction ratings were also good for the top companies, though a few scored low on J.D. Power. Still, these companies didn’t become the top commercial carriers by chance. They have solid foundations for the future, which means whichever one you pick won’t go bankrupt within a decade.
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Best Commercial Insurance Company by Community Involvement
One of the ways to determine if a company cares about its customers is to see how involved it is in the community. Let’s take a brief look at the top commercial companies’ community involvement.
Texas Commercial Insurance Companies' Community Involvement
| Insurance Companies | Community Involvement Programs | Money/Hours Donated |
|---|---|---|
| AIG | Task Force on Climate-related Financial Disclosures | $8 million; 80,000 hours |
| Berkshire Hathaway Inc | NA | NA |
| Chubb | Chubb Charitable Foundation | $8.3 million |
| CNA | NA | NA |
| Liberty Mutual | Liberty Mutual Foundation Liberty Mutual Grant Safeco Insurance Fund | 2.6 million hours donated; $52 million donated from corporate and employee giving. |
| Progressive | Progressive Together® Progressive Insurance Foundation Stem Progress® | $9.6 million donated in 2018; 18,200 hours donated |
| Texas Mutual Insurance Co. | NA | $1.1 million donated in Texas |
| The Hartford | NA | $2 million donated; 180,000 hours |
| Travelers | Travelers Foundation | $218 million donated over past decade; 120,000 hours |
| Zurich | New Orleans PGA Tour Event | $8.6 million donated; 205,874 hours donated |
All of the companies take a vested interest in the community by encouraging volunteer work and matching employee donations. A number of companies even have trademarked community service programs or grants.
Best Commercial Insurance Carrier by Employee Review
To see what the employees think of the company they work at, we are going to go through the employee ratings at a Great Place to Work and ratings at Glassdoor. To start, let’s see how many employees rate each company as a great place to work.
Employee Ratings of Top Texas Commercial Insurance Companies
| Insurance Companies | Employees Who Would Recommend Company to a Friend | Employees Who Approve of CEO |
|---|---|---|
| Chubb | 59% | 70% |
| Travelers | 74% | 86% |
| Liberty Mutual | 56% | 73% |
| AIG | 51% | 67% |
| Texas Mutual Insurance Co | 53% | 73% |
| CNA | 54% | 62% |
| Zurich | 38% | 74% |
| Progressive | 69% | 91% |
| Berkshire Hathaway Inc | 65% | NA |
| The Hartford | 74% | 88% |
Employee reviews are a qualitative way to judge which commercial insurance carrier is right for you. As you can see, more than half of all employees approve of the companies’ CEOs, and more than half would recommend their company to a friend, except Zurich Insurance Group. The biggest complaint among employees at all insurance companies was the lack of opportunities to climb the corporate ladder.
Who determines the best commercial insurance company?
Insurance companies in the USA are held to certain standards set by the company’s listed below. Insurance company ratings can help you determine which company is the best commercial insurance carrier for your needs.
What does the Texas Department of Insurance do? It regulates the insurance industry in the state.
If you have questions about the reputation of a particular carrier, you can contact the Texas Department of Insurance for company profiles. The Texas Department of Insurance company lookup can be found online for quick searches. You can find information about Texas admitted insurance carriers and Texas Department of Insurance rates and insurance rate increases.
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A.M. Best
A.M. Best is a company that rates insurers based on their ability to meet financial obligations (such as paying claims).
A.M. Best Ratings of Top Texas Commercial Insurance Companies
| Insurance Companies | A.M. Best Rating |
|---|---|
| AIG | A |
| Berkshire Hathaway Inc. | A++ |
| Chubb | A++ |
| CNA | A |
| Liberty Mutual | A |
| Progressive | A+ |
| Texas Mutual Insurance Co. | A+ |
| The Hartford | A- |
| Travelers | A+ |
| Zurich | A+ |
An A++ rating is the highest rating available and means that a company has a superior ability to meet ongoing financial ratings. This is good, as it means a downward turn in economics won’t ruin one of these companies.
In fact, the lowest rating on the list is an A, which is still a good rating, as it shows strong financial stability. This means that the listed companies are also of the strongest companies when it comes to finances. So as long as their ratings don’t dip, all of these companies have strong futures ahead of them. The video below explains the importance of AM Best’s work.
Why do we care so much about companies’ financial stability? We want to make sure that whatever company you pick from will keep you well protected. A company with poor finances risks going bankrupt or losing customers by paying out poor claims.
Better Business Bureau
The Better Business Bureau (BBB) is different from a financial rating. It looks at the following company aspects to determine a rating:
- Company’s complaint history
- Type of business and time in business
- Transparency of business practices
- Failure to honor commitments to BBB
- Licensing and government actions
- Advertising issues
A score out of 100 is formulated from all of these factors and a letter grade assigned.
Let’s take a look at what the top companies in Texas earned from BBB:
Better Business Bureau Ratings of Texas Commercial Insurance Companies
| Insurance Companies | BBB Rating |
|---|---|
| AIG | A- |
| Berkshire Hathaway Inc. | A+ |
| Chubb | A+ |
| CNA | A+ |
| Liberty Mutual | A |
| Progressive | A+ |
| Texas Mutual Insurance Co. | A+ |
| The Hartford | A+ |
| Travelers | A+ |
| Zurich | A+ |
Moody’s Rating
Moody’s also rates a company’s financial standing. Take a look at the scores below to see how the top companies rated.
Moody's Ratings of Texas Commercial Insurance Companies
| Insurance Companies | Moody's Rating |
|---|---|
| AIG | A2 |
| Berkshire Hathaway Inc | Aa2 |
| Chubb | NA |
| CNA | A2 |
| Liberty Mutual | A2 |
| Progressive | A2 |
| Texas Mutual Insurance Co | NA |
| The Hartford | A1 |
| Travelers | Aa2 |
| Zurich | Aa3 |
So what do these letters and numbers mean? Well, according to Moody’s explanation of its credit scores, any rating with two “As” in it is considered to be a company with very low credit risk. A rating with just one “A” is a company with low credit risk.
These ratings are then ranked with numbers at the end, so a company with an A2 rating will be slightly worse than a company with an A1 rating. As you can see, all of the companies on the list ranked well as either very low credit risk or low credit risk.
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S&P Rating
S&P stands for Standard and Poor’s, another trusted financial rating site. Let’s see what rating each company got from S&P.
S&P's Ratings of Texas Commercial Insurance Companies
| Insurance Companies | S&P's Rating |
|---|---|
| AIG | A+ |
| Berkshire Hathaway Inc. | AAA |
| Chubb | AAA |
| CNA | A+ |
| Liberty Mutual | A |
| Progressive | A |
| Texas Mutual Insurance Co | NA |
| The Hartford | A+ |
| Travelers | AA |
| Zurich | AA- |
The ratings are based on a unique letter scale, ranging from AAA to D. Let’s go over each of the scores from the table above.
- AA to AA- means a company has a “very strong capacity to meet financial commitments.”
- A+ to A means a company has a “strong capacity to meet financial commitments, but somewhat susceptible to economic conditions and changes in circumstances.”
- BBB means a company has an “adequate capacity to meet financial commitments, but more subject to adverse economic conditions.”
So while all the companies scored fairly well, a few companies are more at risk if the economic environment takes a turn for the worse.
NAIC Complaint Index
Now that we’ve covered the top Texas companies’ financial status, we want to start looking at customer ratings. The first ratings we want to cover are the National Association of Insurance Commissioner’s (NAIC) complaint index. Let’s see which companies have the lowest ratio of complaints.
NAIC Complaint Ratios of Texas Commercial Insurance Companies in 2018
| Insurance Companies | Total Complaints 2018 | Complaint Ratio |
|---|---|---|
| AIG | 1 | 0.001 |
| Berkshire Hathaway Inc. | 0 | 0.000 |
| Chubb | 1 | 0.001 |
| CNA | NA | NA |
| Liberty Mutual | 233 | 0.091 |
| Progressive | 6 | 0.011 |
| Texas Mutual Insurance Co | 4 | 0.007 |
| The Hartford | 17 | 0.031 |
| Travelers | 1 | 0.001 |
| Zurich | 22 | 0.041 |
You are probably wondering why the companies with the highest complaint numbers still have low complaint indexes. These are some of the largest companies in America, so even a thousand customers complaining is only a small amount of the total customers.
J.D. Power
If a company has decent customer ratings, it is less likely to lose customers. To see which companies scored the best in Texas, we want to take a look at J.D. Power’s 2018 report. J.D. Power is a great resource when it comes to customer satisfaction, as the company surveys thousands of customers every year. You’ll notice that Travelers isn’t rated on J.D. Power’s study, but the other companies are.
J.D. Power Satisfaction Ratings for Top Texas Commercial Insurance Companies
| Insurance Companies | Satisfaction Index (out of 1000) | 2018 J.D. Power Rating |
|---|---|---|
| Chubb | 782 | Better Than Most |
| Travelers | 780 | Better Than Most |
| Liberty Mutual | 751 | The Rest |
| AIG | 748 | The Rest |
| Texas Mutual Insurance Co | NA | NA |
| CNA | 767 | About Average |
| Zurich | 772 | About Average |
| Progressive | NA | NA |
| Berkshire Hathaway Inc | 784 | Better Than Most |
| The Hartford | 747 | The Rest |
Out of the top commercial insurance providers in Texas, Berkshire Hathaway Inc. had the highest customer satisfaction rating.
This shows how ratings can influence how you shop for insurance. When compared to larger, more recognized insurance companies, a smaller company can be more customer-service oriented. As long as a smaller company can cope with large claims, a smaller company can make a great choice for commercial insurance provider.
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What does a commercial insurance policy cover?
The list of commercial insurance coverage available is extensive, covering theft to property damage, worker’s compensation, and everything in-between. You will have to contact an insurance agent near you to find out which commercial insurance coverage you want to include in your policy.
What is considered commercial insurance? There are many kinds of commercial insurance policies available to you. This guide will cover four main kinds of commercial insurance coverage – commercial property insurance, commercial general liability insurance, workers’ compensation insurance, and commercial auto insurance, as well as go into detail about some of the other kinds of commercial insurance coverage you can get. (For more information, read our “Texas to Increase Mandatory Minimum Auto Insurance Limits“)
Commercial Property Insurance
Every business usually needs insurance coverage for their property, both commercial property and for personal property on business premises. Your commercial property insurance coverage can include glass insurance for broken windows, debris removal, and business interruption insurance that covers lost income resulting from property damage.
Commercial General Liability Insurance
What is liability insurance? General liability insurance will protect you from claims where you may be liable for property damage or bodily injury liability. This can also be referred to as “liability contractor insurance” because independent contractors will often need a commercial general liability insurance policy to protect their work in case they are sued for damages.
Who needs commercial general liability insurance? Not just contractors. All businesses need to protect themselves when employees, customers, or clients are injured or personal property is damaged by your business operations or on your commercial property. General liability business insurance will also protect you from copyright infringements and claims.
Where can I get liability insurance for my small business in Texas? Refer to our list of the top 10 commercial insurance companies above and compare their rates. How much commercial general liability insurance you need depends on what level of commercial coverage you want for your business. (For more information, read our “Top Ten Insurance Companies in the United States“)
Cheap general liability insurance is available if you know where to find commercial insurance quotes. Keep reading for more information how how to get cheap commercial insurance.
Read More:
- Best Business Insurance Companies
- Premises and Operations Coverage (CGL, Coverage A)
- Commercial general liability limits
- Top 10 Insurance Complaints
- Top Commercial Auto Insurance Companies in Texas
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Workers Compensation Insurance
Workers compensation insurance provides coverage for employees who are injured at work or on the job. It protects employers from being sued for negligence, and it also protects employees from losing wages or their job for an injury sustained while at work.
Depending on state laws, employers are usually obligated to purchase workers’ compensation insurance for their employees. Workers compensation insurance is not required in Texas, but not subscribing to it leaves Texas businesses open to the risk of personal lawsuits.
Commercial Auto Insurance
Commercial auto insurance policies will provide coverage for any vehicles used in your business. This includes but is not limited to cars and sedans, trucks, vans, and limousines. Your commercial auto insurance will protect you in your vehicles are stolen, vandalized or involved in an accident.
Commercial auto insurance policies may not always cover employee injuries, so make sure you have the proper workers compensation and commercial property insurance policies in place. Keep reading for more information on which of the top commercial insurance carriers in Texas offer commercial auto insurance.
What is considered commercial insurance?
While property, general liability, workers comp, and commercial auto are the most common commercial insurance policies you will need, you may also want commercial insurance coverage for the following:
- Malpractice insurance – coverage for defense attorneys and settlement costs for doctors and other health practitioners
- Commercial crime insurance – coverage for theft, robbery, burglary, and extortion that is not otherwise covered by commercial property insurance
- Farm insurance – insurance policy designed to cover both personal property and farm property since they are often one in the same for many commercial farmers
Small business insurance is also a type of commercial policy. Small business insurance costs can be lower than a commercial policy for a large company.
For more information on what kinds of commercial insurance coverage are available to you, contact an insurance agent near you.
How can I find a trustworthy commercial insurance agency near me? Find out here.
Read More: Top 10 Lies Told By Insurance Agents and Their Customers
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Which commercial insurance carriers are offering commercial auto insurance in Texas?
Out of all the types of insurance available, commercial car insurance can be the most confusing. Commercial car insurance policies differ greatly from personal coverage, and it differs still from similar policies like commercial fleet insurance. That means that the best auto insurance companies in Texas for one type of policy will be different from the best pick for another type.
Each of the top commercial insurance carriers in Texas provide a variety of commercial auto policies except Texas Mutual Insurance Company. Keep reading for more information on what commercial auto policies cover in Texas.
What does a commercial auto policy cover?
A commercial auto insurance policy provides protection for business vehicles. This coverage is sold at most providers and is vital to have. Why?
A commercial auto insurance policy protects your assets. If your flower truck rolls over going down a steep hill, having good commercial auto insurance will make sure that you don’t lose your business because of this financial loss.
A commercial auto insurance policy will usually cover:
Commercial Auto Insurance Coverage Types
| Basic Coverages of Commercial Auto Insurance | Description | Example Situation |
|---|---|---|
| Bodily injury and property damage liability | Covers costs if you cause an accident that damages another driver's property or causes another driver injury. | You rear-end another car, and the driver now needs a new bumper. |
| Collision | Covers costs if you hit another vehicle or an object. | You take out a fence post while backing out of the driveway. |
| Comprehensive | Covers costs of theft, vandalism, and natural disasters. | Your truck's new company decal has been spray painted over. |
| Medical coverage | Covers costs of medical bills if you are in an accident. | Your flower van crashes into a mailbox, giving you a concussion. |
| Uninsured/Underinsured driver coverage | Covers costs if the other driver who caused the accident can't pay your bills. | The driver who took off your side mirror while pulling out doesn't have insurance. |
A commercial auto insurance policy has numerous coverages rolled into one policy. Commercial auto insurance policyholders receive the benefits of liability, collision, comprehensive coverage, and more. It will also cover short personal trips, such as using the work car to pick up prescriptions on the way to a job.
However, some insurers may try to skimp out on full policy coverage or charge more to add these benefits. Because of this, make sure to talk to the insurer first before signing up for their commercial auto insurance coverage.
Read more: Commercial Auto vs. Personal Auto vs. Business Auto
What kind of commercial auto insurance coverage is available in Texas?
You are required to have bodily injury liability coverage and property damage liability coverage in Texas, but these coverages only cover other driver’s costs if your commercial car causes a wreck. To make sure your vehicle and your employees are safe, you should consider the following coverages:
- Collision coverage
- Comprehensive coverage
- Personal injury protection or Medpay coverage
- Underinsured and uninsured motorist coverage
These coverages are offered by all the major insurers, as they are the basic building blocks of any good commercial policy. You should also consider adding the following coverages if offered.
- Modified car coverage
- Vehicle breakdown assistance
- Umbrella coverage
These coverages can be useful for commercial vehicles. For example, umbrella coverage provides extra liability protection in case you are sued, so you don’t have to worry about where to find the money for a lawyer.
If you don’t have enough car insurance coverage in Texas, you’ll be taking a great financial risk. Texas requires the minimum level of liability coverage, so if you’re to be at fault in an accident, you’ll be responsible for injuries and property damages.
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What are the commercial car insurance rates in Texas?
We’ve covered which companies are used the most for commercial coverage, but we also want to give you an idea of the requirements for commercial auto insurance and the minimum coverage amounts. Who has the best auto insurance rates in Texas for commercial coverage?
Because commercial insurance rates are calculated very differently from personal rates, they aren’t comparable and are very specific to your needs.
Is commercial auto insurance expensive?
Different factors will influence the price of your commercial auto policy. For example, the higher the level of protection on your commercial vehicle, the more expensive. But remember, it’s your livelihood at stake.
Moreover, shopping for car insurance companies can be overwhelming because there’s a wide range of companies, types of coverage and discounts. (For more information, read our “Types of Auto Insurance Companies“).
If you have a host of male drivers employed, you may pay slightly more for car insurance than if you have female drivers. Male drivers are considered riskier drivers, as are younger drivers. So the more experience your drivers have with driving commercial vehicles, the less you will pay.
If you are not sure about the insurance buying process, you can contact an independent agent or customer service representative to help you decide how much coverage you need and find out any discounts.
Will the make and model of the vehicle affect my commercial auto insurance rates?
What types of vehicle you register as commercial vehicles will also affect how much you pay. If you have a truck that you use to transport equipment, you will earn a better rate than if you have a sports car used to transport clients. However, if you have a heavy-duty truck, you may pay more because large trucks cause more fatalities in crashes.
Not all insurers charge the same for different vehicle types, so this is where it pays to shop around. For example, you could save almost $3,000 on insurance for a Ford F-150 if you switch from Liberty Mutual to Geico.
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Will my commute affect my average commercial car insurance rates?
How much do you plan on using your commercial vehicle? If it’s for just short trips around town, you could save on car insurance. Not all insurers increase their rates for longer commutes. If your commercial vehicles are traveling long distances, make sure you aren’t paying a ton more.
Will my credit history and driving record affect my commercial auto insurance policy?
When it comes to commercial auto insurance, it doesn’t matter what the individual drivers’ credit histories are. It matters what the policy holder’s credit history is – that’s you. The news video below explains why a credit score is so important to insurers.
If you buy a commercial policy and have poor credit, you will be paying more to cover your commercial vehicles and drivers.
Why do commercial auto insurance rates vary by state?
If you’ve ever moved to a new state, then you’re aware that auto insurance rates can vary greatly from state to state.
There are several reasons for these location costs, which we’ve listed out below.
- Crime. If your state is one of the worst states for vehicle theft, vandalism, or just crime in general, insurers are going to charge you more. After all, they are footing the bill if your repair vehicle is broken into and all your tools are stolen.
- Economy. Does your state have a poor economy? This means drivers will be more likely to miss payments or have run-ins with uninsured drivers.
- Weather. Live in a state with frequent earthquakes or heavy snowfall? Insurers will have to pay if your car is flooded or you skid on ice and crash.
- State laws. Some states require drivers to have more coverage, which means your bill will be higher than normal.
- State crash data. Some states have more crashes than other states, depending on the population density, road conditions, and more.
Now that you have a general idea of why insurers charge different amounts based on location, let’s take a deeper look into some of Texas’s laws.
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What are Texas commercial auto insurance laws?
Texas requires drivers to have a minimum amount of car insurance coverage. Texas motor vehicle drivers need the following liability amounts:
- $30,000 for one individual injured in an accident
- $60,000 for all people injured in an accident
- $25,000 for property damage from an accident
However, commercial vehicle drivers will likely need higher liability amounts than those for regular drivers. Your insurer will be familiar with what Texas requires, so double-check with them to make sure that your policy meets Texas’ requirements.
Your commercial policy should also include protection for you, as liability coverage pays for the other driver’s medical or property damage bills. Since commercial insurance is an inclusive policy, it should protect your assets completely.
Read More: Medical Payments to Others (CGL, Coverage C)
What commercial insurance carrier discount programs are available?
How much is business insurance in Texas? It varies, but there are ways to get better rates. One of the best ways to save on commercial insurance is by taking advantage of the discounts different carriers offer. How much you will save will depend on which commercial insurance carrier you are with and what types of discounts they offer.
There are also quite a few different programs you should be asking your insurance provider about. Not all of them will be offered at all insurers, but insurers will usually provide one or two of them.
- Accident forgiveness. Companies will sometimes forgive drivers for their first at-fault accident if drivers have been accident-free for a few years.
- Car buying programs. Companies sometimes offer programs that help shoppers find the best price on a car.
- Usage-based programs. Companies often offer apps that give discounts for safe driving.
- Vanishing deductibles. Companies will lower deductibles for every year of accident-free driving.
All of these programs will help you save on car insurance, so take advantage of them when you can.
How to file a commercial insurance claim?
With all the top insurance carriers in Texas, it is easy to make a claim. There are a number of ways to contact your insurer:
- Agent: If you have a local insurance agent in your area, you can contact them to file a claim.
- App: Usually, any company with a mobile app has a claim submission form on the app.
- Phone: Most companies have a direct claim line. If not, you can call the main customer service line.
- Website: The majority of the time, you can log in to your account on the insurer’s main webpage to file.
Almost all of these options are available at each top commercial insurance company. Visit your insurer’s website for more information on how to file a claim with them specifically.
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How to cancel your commercial insurance policy?
If you think it’s time to cancel your commercial insurance policy at your current provider, there a few steps you’ll need to take to make sure nothing bad happens in the process. In this section, we will go over fees, refunds, and how to cancel. These are important steps to follow, as you don’t want to be stuck without coverage or have to pay major fines.
Canceling at any commercial insurer is fairly straightforward. However, you want to make sure that you follow the requirements for canceling. Otherwise, your cancellation may not go through. Before you even start the process of cancellation, though, you need to make sure that you have a new commercial carrier policy.
If you don’t, you could end up with a lapse in coverage that will raise your rates. Your old insurer will also ask for the information on your new insurer when you cancel, so you will need to sign up beforehand. You will also need to have the following information on hand when you cancel:
- Your current policy number and personal information (name, birth date, etc.).
- Reason for cancellation. If you are canceling because you sold your commercial vehicle, you will need a bill of sale.
- The desired end date of your old policy.
There are a number of ways you can contact your insurer to cancel. Insurers will always offer a number to call and cancel, but some insurers also allow to cancel your policy online. You can also send a cancellation letter directly to the insurer’s headquarters. However, this method takes the longest, so you’ll have to send it in well before your desired cancellation date.
When can I cancel my commercial insurance policy?
You can cancel at any time. Just make you have a new insurer before and properly cancel your commercial coverage.
Are there fees for canceling commercial insurance coverage?
Not all insurers charge cancellation fees. However, some will charge if you cancel your commercial policy before the end of a renewal cycle. The good news is that none of the top commercial providers charge fees for cancellation, at least none that they list on their sites.
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Will I receive a refund for my canceled commercial insurance policy?
All insurers should refund you for unused coverage. So if you only use up three months on your year-long commercial policy, you should be refunded for the remaining nine months.
How to get commercial insurance quotes online?
Looking at a company’s average rate can give you a good idea of what different companies charge and help you eliminate some that are clearly out of your price range. The more quotes you gather to look at, the more quickly you can narrow it down. That’s what makes a free commercial insurance quote tool so helpful.
Remember that commercial insurance is different from personal insurance, and requires a lot of information about the company for an accurate rate. That means that the final rate will likely look different from the initial estimated quote.
What are the best commercial insurance carriers in Texas?
Any of the top commercial carriers would make a great choice, but each has something different to offer. Make sure to consider the following when making your final choice:
- Price: Make sure the insurer you pick fits in your budget. You can lower costs through discounts and shopping around for quotes.
- Coverage: Make sure that your insurer has all the coverages you need for your company car.
- Ratings: Make sure the company rated well financially. Also, you should check customer service reviews.
What decision you make is up to you, but make sure that you figure out what is most important to you. If you value great customer service, don’t pick the top company with the lowest customer satisfaction rating. Likewise, if the price is an issue, don’t go with the most expensive provider. Sifting through providers like this will help you find one that meets your budget and your needs.
Read more: Six Insurance Companies Top in Customer Service Among All Industries
We hope our guide gave you some insight into commercial car insurance. After reading it, you should be ready to ensure the future of your business by picking the right provider to protect your assets.
To save money, start shopping around for rates today with our free online tool.
When in doubt, visit or call your insurer to have your specific questions answered.
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Texas Commercial Insurance FAQ
If you still have questions, keep reading. Before we end our guide on the best commercial insurance carriers in Texas, we are going to go over a few frequently asked questions.
Which Texas commercial insurance carriers have a mobile app?
It’s important that companies have well-designed apps, as well as websites, to make things easier for customers when filing claims, changing policy information, accessing ID cards, and much more.
It should be easy for you to navigate each website to find the information you need, but if you are a mobile user, you might want to find a commercial insurance company with a mobile app for its customers. All of the top commercial insurance companies in Texas have mobile apps, even the smaller insurance companies. To find your insurance provider’s app, search for it on the App Store for Apple or the Play Store for Android.
Do I need commercial coverage for my employees in Texas?
It’s one thing to decide if your vehicle needs to be covered by commercial insurance and another thing to decide if your employees’ personal vehicles need to be covered.
To help show you some situations when commercial coverage would be needed, ask yourself the following questions:
- Do you have a sales force to which you provide a car allowance for the business use of personal vehicles? If you’re giving your employees money for driving expenses, these vehicles will probably qualify for commercial coverage.
- Do your employees use their own cars to perform deliveries, make sales visits, pick up supplies, or run errands for your business? If your employees are using their personal vehicles to perform work-related tasks every day, they probably need to be covered by commercial coverage.
Bottom line? If your employees are using their own personal vehicles or your personal vehicles for work-related tasks, it’s probably time to talk to your insurer about commercial coverage.
However, your employees will still need their personal auto coverage if they’re using their own vehicles. A personal auto insurance policy will cover the times that employees aren’t driving for work. As you can see, it’s tricky to navigate what qualifies for commercial coverage and what doesn’t.
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Which cars count as commercial vehicles in Texas?
Any car that you use primarily for business will count as a commercial vehicle. While most people think of a delivery van or a truck when they think of commercial vehicles, any car can count as a commercial vehicle.
If you meet the following criteria, you may qualify for commercial auto insurance.
- The vehicle is company-owned or used for company-related tasks.
- You use the vehicle for business reasons, such as driving to meetings or making deliveries.
- You use the vehicle to transport equipment, such as construction equipment.
- You have specialized company equipment installed, such as ladders or toolboxes.
Basically, if the company owns the vehicle or the vehicle is used more for business reasons than personal reasons, it qualifies for commercial auto coverage. So anything from a minivan to a semi-trailer can qualify for commercial insurance.
Bottom line? It’s not the make or model of the car that matters, but rather the purpose of the vehicle.
Commercial auto insurance and business auto insurance can be confusing. Sometimes, insurers will use these terms interchangeably to mean the same type of coverage — a protective policy for your work vehicle.
So if you’re reading the description for business car insurance on an insurer’s webpage and it sounds similar to commercial auto insurance, it’s probably because it is commercial auto insurance.
However, sometimes an insurer will list both business and commercial insurance on their website. In this case, they are two different things.
The insurer will intend for a commercial auto policy to cover specialized work vehicles like refrigerated trucks and towing vehicles. The business policy will be for regular cars that are used for normal situations, like driving downtown for a meeting.
As always, though, ask your insurer if you’re unsure about what the insurer’s commercial or business policies actually cover.
What is the best health insurance in Texas for employee benefits?
Most of the major insurance companies can help you with providing employee benefits, including health insurance, to your employees. Some may also package these benefits with things like long-term care and disability. The best choice for your company depends on its size and needs. It’s best to speak to an employee benefits specialist.
Is Farmers Texas County Mutual a Commercial Company?
Farmers Texas County Mutual writes a wide variety of policies, including business insurance. They are a smaller company located in Austin, TX. For more information about their commercial coverage, contact your local Farmers Texas County Mutual Insurance Company registered agent.
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Do I need to insure my personal car for business use?
It can be tricky to know if you need commercial auto insurance for your personal car. If you use your car to drive to work every day and then it sits in the parking lot all day, the answer is no.
But if you use your car to drive back and forth from meetings to promote your business for hours every day, it would probably count as business use.
So while picking up pizza in your car for the work party won’t classify your car for commercial insurance, using your car to deliver pizzas for a company will.
However, there are some professional car uses that insurers won’t cover. Let’s take a look at some examples.
- Rideshare vehicles: If you work for a rideshare company, you can’t get commercial coverage. Instead, you have to purchase ridesharing insurance to cover the times you’re using your personal car for ridesharing.
- Rental vehicles: If you have a car rental business, these vehicles won’t count under commercial coverage.
- Transportation vehicles (school buses, etc.): These vehicles aren’t insured under commercial coverage, as they are a public service rather than a business venture.
Insurers will have a full list of what vehicles they don’t insure, but the above examples should give you a good idea of what is and isn’t insured under commercial coverage.
Enter your ZIP code in our FREE tool below to find commercial insurance companies in Texas.
References:
- https://www.tdi.texas.gov/consumer/company-profiles-and-agents-for-service-of-process.html
- http://www.ambest.com/home/default.aspx
- https://www.bbb.org/overview-of-bbb-ratings
- https://www.moodys.com/researchandratings/
- https://www.standardandpoors.com/en_US/web/guest/home
- https://content.naic.org/#_ga=2.60809709.1164472186.1583850060-303886449.1583850060
- https://www.jdpower.com/business/press-releases/2018-large-commercial-insurance-study
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Jeff Root
Licensed Insurance Agent
Jeff is a well-known speaker and expert in life insurance and financial planning. He has spoken at top insurance conferences around the U.S., including the InsuranceNewsNet Super Conference, the 8% Nation Insurance Wealth Conference, and the Digital Life Insurance Agent Mastermind. He has been featured and quoted in Nerdwallet, Bloomberg, Forbes, U.S. News & Money, USA Today, and other leading...
Licensed Insurance Agent
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