Commercial Auto Insurance Coverage Requirements in Texas

In Texas, the state law requires all commercial auto policies to have minimum liability limits of $30,000 per person and $60,000 per accident for bodily injury, and $25,000 for property damage, often referred to as 30/60/25. Some policies may need to carry higher limits based on the types of vehicles listed in the policy.

In Texas, certain types of commercial vehicles may be required to have higher liability limits than the standard minimum due to their potential for greater damage or risk. These include:

1. Vehicles transporting household goods (gross vehicle weight, registered weight, or gross weight rating of 26,000 lbs. or less) | $300,000
2. Buses designed or used to transport more than 15 people, but fewer than 27 people | $500,000
3. Buses designed or used to transport 27 or more people | $5,000,000
4. Commercial school buses, regardless of the passenger capacity as described in Transportation Code, §643.1015 | $500,000
5. Farm trucks (gross vehicle weight, registered weight, or gross weight rating of 48,000 lbs. or more) | $500,000
6. Commercial motor vehicles and vehicles transporting household goods (gross vehicle weight, registered weight, or gross weight rating in excess of 26,000 lbs.) | $500,000
7. Commercial motor vehicles – Oil listed in 49 C.F.R. §172.101; hazardous waste, hazardous materials and hazardous substances defined in 49 C.F.R. §171.8 and listed in 49 C.F.R. §172.101, but not mentioned in items 8 or 9 of this table | $1,000,000
8. Commercial motor vehicles with a gross vehicle weight rating of 10,001 or more pounds – Hazardous substances, as defined in 49 C.F.R. §171.8, transported in cargo tanks, portable tanks, or hopper-type vehicles with capacities in excess of 3,500 water gallons; or in bulk Division 1.1, 1.2, and 1.3 materials. Division 2.3, Hazard Zone A material, or Division 6.1, Packing Group I, Hazard Zone A material; in bulk Division 2.1 or 2.2; or highway route controlled quantities of a Class 7 material, as defined in 49 C.F.R. §173.403 | $5,000,000
9. Commercial motor vehicles with a gross vehicle weight rating of less than 10,001 pounds – Any quantity of Division 1.1, 1.2, or 1.3 material; any quantity of a Division 2.3, Hazard Zone A, or Division 6.1, Packing Group I, Hazard Zone A material; or highway route controlled quantities of a Class 7 material as defined in 49 C.F.R. §173.403 | $5,000,000

In Summary:

1. Trucks carrying 26,000 pounds of cargo or less:
   • Transporting only household goods within Texas: Minimum of $300,000 liability insurance.
   • Transporting household goods beyond state lines and weighing over 10,000 pounds: Minimum of $750,000 liability insurance (as per FMCSA).
2. Trucks carrying 26,000 pounds of cargo or more:
   • Transporting only household goods: Minimum of $500,000 liability insurance (required by both Texas and federal law).
3. Oil transport:
   • Trucks carrying oil: Minimum of $1,000,000 liability insurance (required by both Texas and FMCSA).
4. Hazardous materials transport:
   • Trucks transporting hazardous materials of any type: Minimum of $5,000,000 liability insurance (required by both Texas and FMCSA).

It’s also important to note that other types of insurance coverage may be required in addition to liability insurance, depending on the nature of the operations and the specific requirements of state and federal regulations.

The specific requirements can vary depending on the type of commercial business vehicle, its use, and other factors. It’s important for businesses to consult with an insurance professional or refer to the Texas Department of Insurance for guidance on the appropriate coverage levels for their specific commercial vehicles.