All Things Commercial Trucking Insurance for Texas

They say everything is bigger in Texas and that includes the premium you will pay if you don’t work with an independent insurance agency that specializes in Semi Truck Insurance. Barbee Jackson Insurance is one of the largest commercial trucking insurance specialists across the United States working with hundreds of fleet operators, trucking companies and owner operators. Our team of dedicated trucking specialists will work with you to find the right coverage at the best price. 

What are the Requirements to Operate a Commercial Truck in Texas?

Requirements are based on the gross vehicle weight (GVW) when it comes to the insurance requirements and can be broken down in the following. Please note that this is for intrastate hauling only, meaning that you don’t cross state lines.

GVW of 26,000 pounds or less
Trucks weighing less than 26,000 pounds are required to carry a minimum of $300,000 in liability insurance. 

GVW of 26,000 pounds or more
Trucks weighing more than 26,000 pounds are required to carry a minimum of $500,000 in liability insurance

Hazardous Material and Oil Transport 
When hauling any oil or hazardous materials the State of Texas requires truckers to carry a minimum of $1,000,000.

Now that we know what the requirements are to be a trucker in Texas, let's break down how the limit works.

Commercial Trucking Insurance works the same as auto insurance except the auto liability coverage between bodily injury and property damage are combined into one coverage level called Combined Single Limit (CSL).

For example, you have a CSL of $300,000, that means if you get in an at-fault accident that has bodily injury and property damage the insurance company will be responsible to cover the loss up to that limit.

Texas has Filings

Like most states, Texas has insurance filings that must be submitted to the TxDOT. The first is Form E.

Form E
Form E is filed by the insurance company to TxDOT in which it states that you are in compliance with state insurance law for your size truck.  

Form H
Form H states that you have at least the minimum required amount of cargo insurance.

Form T
Form T says that you have met the minimum insurance requirements for a tow truck.

How much does Commercial Trucking Insurance Cost in Texas?

Rates vary depending on years in business, number of insurance claims, driving record, cargo hauled, credit score and hundreds of more factors that the insurance companies use to calculate insurance premiums. We have seen rates as low as $4,000 and as high as $36,000, so it is best to call and speak to a specialist.

These rates are all intrastate, meaning the trucking business does not cross state lines.

Thinking about Crossing State Lines?

If you are going to cross state lines then all your filings will have to comply with Federal Motor Carrier Safety Administration (FMCSA). FMCSA requires a Motor Carrier Number (MC) to be filed with the FMCSA stating that you are carrying at least $750,000 in auto liability insurance.

Credit Score?
One of the largest factors insurance companies are using is the owner's credit score. Why? Insurance companies have found that owner’s with higher credit scores have lower number of insurance claims. So if you want the best rate, make sure your credit score is as high as possible.

Other Insurance Coverage Options

Physical Damage
If you want to cover the rig itself against loss then you need to add comprehensive and collision to the insurance policy. You state the amount of coverage you need on the truck along with your choice of deductibles. Higher the deductible the lower the physical damage premium.

General Liability 
Depending on your type of business or who you are pulling for will depend on if you need General Liability Insurance. General Liability can be added on to some insurance policies and other insurance companies will require you to get a policy from an outside insurance company that specializes in that type of insurance.

Reefer Breakdown
Hauling refrigerated goods? If so then you will need reefer breakdown endorsement onto the policy. Reefer breakdown endorsement provides loss protection if the refrigerated trail has a mechanical or equipment failure. 

It is important to remember that the unit has to have failed. It can not be because of user error or delays.

Trailer Interchange
Many truckers just own the rig and haul and non-owned trailer. Trailer Interchange provides physical damage coverage for the non-owned unit. 

Non-Trucking 
Are you going to lease on to another trucking outfit? If so, you will need to purchase Non-Trucking Liability commonly referred to as Bobtail Insurance

Workers Compensation
If you have employees then you must carry a Workers Comp policy to provide your workers medical protection in case they are injured on the job. 

Texas Commercial Trucking Insurance can be challenging to obtain if you are not working with the right insurance agency. Barbee Jackson Insurance is here to help truck drivers navigate the filings and get you the best rate. Call today to get started (850) 389-2001