Whether small businesses or part-time businesses using commercial vehicles require commercial auto insurance, is a big question. Needless to say, a small or part-time business owner grapples with a limited operating budget. Since many of them struggle to cut business overheads, they are under the impression that commercial vehicle insurance is of little use. However, their assumption is wrong. It is a necessity, not an option to get your small business vehicle insured for certain benefits which personal vehicle insurance does not offer.
Though personal vehicle insurance policies cover the business use of a vehicle to some extent, it does not provide some exclusive benefits of commercial vehicle insurance, according to the Industry Trade Group Insurance Information Institute. Only a few know that insurance for commercial vehicles in Texas covers part of a loss in small enterprises. To be precise, commercial auto insurance is as vital as any other kind of business insurance in Austin, Dallas, Houston, San Antonio, Frisco and other Texas cities.
Home-based business owners often use their personal (non-business) vehicles for business use. Even if their vehicles are not primarily or extensively used for business purposes, they should have commercial auto insurance from a reputed insurance agency in Texas. It’s simply because if their personal vehicles or the driver meets with an accident during some business use, to say food delivery, personal auto insurance will not benefit the vehicle owner or the accident victim. No coverage will be provided in such cases. Only commercial auto insurance is the only solution.
Small business owners should also know that certain vehicle types require only commercial vehicle insurance in Texas. Vehicles like tow trucks are solely designed for business use. Personal auto insurance policies do not apply to vehicles with toolboxes or ladder racks attached. Such vehicles fall in the category of business vehicle. Even the owners of food trucks purchase commercial auto insurance from an insurance agency in Texas because they know very well that the extent of coverage they need will not come from personal auto insurance.
Now let’s look at some statistics of motor vehicle traffic fatalities in Texas to understand the usefulness of commercial vehicle insurance plans for small businesses. Texas witnessed a total of 518,577 car accidents in 2015, according to Texas government’s estimates. Statistically, one car accident is reported every 61 second in Texas, USA. 265,076 persons suffered injuries in motor vehicle crashes in 2016. Based on the statistics of road mishaps reported in Texas in 2016, one person died every two hours twenty minutes. Texas didn’t spend zero “deathless” days in 15 years. November 7 in 2000 was the last day without road mishaps.
What’s the best benefit of car auto insurance in Texas is that it also covers the life of a business vehicle’s owner though the owner himself does not drive the vehicle for business use. Without insurance for a commercial vehicle or vehicle for business use, you may end up adding to overheads for your small business. If you are still not convinced, do talk to a reputed insurance agency in Texas.
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