Commercial Auto Insurance for Texas Contractors — Drive with Confidence
Your trucks, vans, and trailers don’t just move equipment — they power your business. When one accident can derail a project, proper commercial auto coverage is essential. At EIS Texas, we tailor auto policies for contractors who haul tools, materials, or crews across job sites in Dallas, Houston, Austin, San Antonio, Fort Worth, and throughout Texas.
State Minimums Are Just the Starting Line
Under Texas law, all motor vehicles— including those used for business— must carry minimum liability insurance. For commercial vehicles, that means:
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$30,000 bodily injury liability per person
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$60,000 bodily injury per accident (all persons)
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$25,000 property damage liability per accident (often written as “30/60/25”)
These are the legal floor, not the ideal coverage for contractors. Many commercial jobs, municipalities, and general contractors will require proof of higher limits via contract.
Also, insurers typically include Personal Injury Protection (PIP) (sometimes optional waiver) and Uninsured/Underinsured Motorist coverages as statutory or elective add-ons.
Failing to carry at least the 30/60/25 limit can lead not only to claim denials, but also fines, license suspension, or impoundment of vehicles under aggressive enforcement programs.
Best Practice Limits: What Contractors Actually Need
For most artisan contractors, the 30/60/25 minimum is simply insufficient. Here are more realistic limits many contractors carry to protect their business:
| Coverage Type | Common Contractor Limit | Why It Matters |
|---|---|---|
| Bodily Injury / Liability | $250,000 / $500,000 or $1,000,000 Combined Single Limit (CSL) | Lawsuits easily exceed minimums — especially when multiple injuries or serious harm occur. |
| Property Damage | $100,000+ or CSL | Damage to client property or other vehicles often goes beyond basic limits. |
| Hired & Non-Owned Auto | $100,000 to $500,000 CSL | Needed when employees use their own car or rentals for business tasks. |
| Uninsured / Underinsured Motorist | Match your liability limits | Protects you if another driver is at fault and lacks sufficient insurance. |
| Physical Damage / Collision / Comprehensive | Full value of your insured vehicles | Keeps your fleet running if a vehicle is totaled or damaged. |
In many construction contract packages, you’ll see $1,000,000 CSL or higher required for auto liability — especially when hauling heavy equipment or working on large commercial jobs.
Real-World Example: Success
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A plumbing contractor in San Antonio was hauling a skid-steer loader on a service trailer. Another driver ran a red light and collided with the trailer, causing $120,000 in damage (vehicle + equipment). Because the contractor’s policy had $1,000,000 CSL liability and included physical damage, everything was covered — the insurer paid vehicle repairs, equipment replacement, and legal even after additional client claims.
Pitfall: When Coverage Fails You
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A roofing company in Houston carried only the minimum 30/60/25 liability on their work trucks. They rear-ended a commercial fleet van and were sued for $150,000. The insurer paid only up to the state limits, leaving the contractor personally liable for the rest. Worse, their policy didn’t include physical damage — so their own truck repairs were out of pocket.
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In another case, a subcontractor used a personal auto for project errands under a personal policy. A major accident occurred; the insurer denied the claim citing “business use exclusion,” leaving both the sub and general contractor exposed.
Keep your business moving. Get a Commercial Auto quote today.
When Does Commercial Auto Must Be Used (Not Personal)?
Texas law and insurance carriers typically require a commercial auto policy instead of personal auto when:
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The vehicle is titled in a business name
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It’s used regularly for business purposes (hauling materials, tools, crew)
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It exceeds certain weight thresholds (for example, over 10,000 lbs GVWR)
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It carries commercial license plates or operates under DOT authority
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The vehicle is used to transport goods, rentals, or for-hire services
Attempting to cover a work vehicle under a personal policy is risky — personal policies often exclude business use and will deny claims tied to your trade operations.
Why EIS Texas Designs Contractor-Friendly Auto Coverage
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We tailor each policy to match your trade, fleet size, and haul needs
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We help you satisfy municipal/contractor insurance requirements (often needing $1M+ liability)
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We provide fast Certificates of Insurance (COIs) for bidding and job start
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We bundle with General Liability, Excess, Workers’ Comp for cost efficiencies
Whether you have a single work truck or manage a fleet across DFW, Houston, or South Texas, your vehicles need protection that matches the risks.