Workers' Comp & Auto · Insurance Term
Commercial Auto Insurance (Business Auto Policy)
Definition
Commercial auto insurance covers vehicles used for business, such as maintenance trucks, vans and company cars. It pays for injuries and damage you cause to others, and can cover your own vehicles, medical costs and uninsured drivers.
In Plain English
A business auto policy lists which vehicles are covered using covered auto symbols. It typically includes liability, and may add auto physical damage for your own vehicles, medical coverage, and uninsured/underinsured motorist protection.
Property owners who do not own vehicles still have auto exposure when employees run errands in personal cars or rent vehicles. Hired and non-owned auto coverage addresses that. It can often be added to a general liability or package program.
Personal auto policies may exclude business use. If you use vehicles for property management, maintenance or deliveries, make sure the right policy covers them.
Not sure how your policy handles this? Have us review it, or get a quote.
Example
Hypothetical: a maintenance employee driving a company truck hits a parked car while visiting a property. Commercial auto liability would typically pay the other owner's damage, and physical damage coverage, if carried, would repair the truck.
Why It Matters for Texas Property Owners
Texas requires minimum auto liability of 30/60/25. Texas law also requires auto liability policies to include personal injury protection (PIP) and uninsured/underinsured motorist coverage unless a named insured rejects them in writing (Insurance Code §§1952.101 and 1952.152).
What to Watch For
- List every vehicle and driver, and update the list when they change.
- Check which covered auto symbols apply to your liability coverage.
- Add hired and non-owned auto if employees use personal or rented vehicles.
- Review PIP and UM/UIM selections or rejections.
Common Questions
Do I need commercial auto if my employees use their own cars?
Their personal policies usually respond first, but your business can still be sued. Hired and non-owned auto coverage is commonly used to protect the business.
Can I put a company vehicle on my personal auto policy?
Sometimes for light use, but many personal policies limit business use. Ask your agent to review how each vehicle is used.
Sources
- TDI: Auto insurance guide
- Texas Insurance Code §1952.101 (UM/UIM coverage)
- Texas Insurance Code §1952.152 (PIP coverage)
Last updated October 14, 2026 · Primesure editorial team · How We Write