Auto insurance can be confusing when it comes to running a business. Most drivers already have personal auto insurance and believe their work vehicles are covered, but this isn’t usually the case. If you have employees driving personal vehicles or sharing company vehicles, personal auto insurance won’t necessarily extend in case of a loss or accident.
In Texas, most businesses are required to carry commercial auto insurance. Qualifications for a vehicle to be considered a “commercial vehicle” can vary per state. Commercial motor vehicles in Texas are self-propelled or towed vehicles weighing less than 48,000 pounds either gross or registered as well as used on public highways to transport cargo or passengers. Other qualifications include:
These are simply the qualifications for a “commercial vehicle” in Texas and are not the only vehicles that should carry commercial auto insurance. There are other requirements for commercial auto insurance that vary per state, such as the type and amount a business must carry.
Texas requires a business to carry commercial auto insurance on both commercial vehicles and personal vehicles if those vehicles are being used for business purposes. Commercial vehicles must carry at minimum $500,000 for liability while commercial vehicles transporting hazardous material may be required to carry at least $5 million. Other vehicles that require commercial auto insurance are:
A fleet vehicle is a vehicle that’s part of a company’s fleet. A fleet is a group of vehicles owned or leased by a business or organization. Though a fleet can have as many cars as it wants, fleets include at least two cars. Commercial vehicles can be fleet vehicles if they’re not privately owned. Commercial vehicles also have a strict guideline stated above as to what qualifies them to be a commercial vehicle. Typically, these vehicles are built for a certain purpose and weigh a certain amount, while a fleet vehicle can be anything, including buses, cars, trucks and more.
Commercial auto insurance covers any vehicle used or owned by a business, including fleets. Fleets possibly need the most commercial auto insurance since fleets contain multiple cars and there are most likely multiple drivers. When there are multiple drivers, you can often tailor your policy to cover any driver that uses the vehicle or only a list of named drivers for specific vehicles.
There are a lot of variables that can affect your commercial auto insurance policy. This includes the number of vehicles, drivers and driving records. On average, commercial auto insurance for cars may cost around $1,200-$2,400 while commercial bus insurance costs around $35,000.
Even small businesses should investigate commercial auto insurance. Industries that require travel or transportation may require commercial auto insurance as opposed to personal auto insurance. If your business transports people and hazardous belongings, it’s especially important to carry a policy that covers liability in case of injury or death. Shop around your area and speak with an agent about the type and amount of coverage your business’ vehicles need.
Caught between baby boomers and millennials, Generation X can often be forgotten. But members of Generation X are now at the ages where they’re building retirement funds and settling into their careers and homes. They also tend to have more earners in the household than the other generations. Unfortunately, that money often comes with a lot of debt.
If you’re a part of Generation X, you need home insurance at an affordable price that won’t plummet you and your family into debt. People born between 1965 and 1979 are considered Generation X, making them around 38-53 years old as of 2019. Around 82% of Gen Xers own homes, but 17% of those homeowners owe more on their mortgage than the value of their home. Gen X is generally behind on retirement savings, as well.
If you’re in debt, not having the right amount of coverage can cause even more issues in the long run. While you might save money on limiting insurance now, one disaster or claim could run your bank account dry. This doesn’t mean you have to buy every coverage in the book, though. There are optional coverages you can choose to go without that may not cause big issues down the road. The important thing is to make sure you have the important coverages.
Most lenders will require you to purchase a certain amount of liability insurance when you buy a home, but a lot of Gen Xers don’t carry enough. They carry the minimum in order to acquire a loan, but not enough to cover themselves if something happens.
In general, insurers recommend you purchase around $300,000-$500,000 in liability coverage. This isn’t just to make you pay higher premiums. Say you host your child’s birthday party. The kids come over and swim in your pool, but one child slips, twists his ankle, and falls in the water. Not only do you want to make sure the child receives the medical attention he needs, but you also want to protect your family and assets against the furious mom that shows up on the scene. If you have $300,000 in liability, you may pay around $266 a year with a $1,000 deductible. Compare that to the cost of an ambulance, medical care and a legal suit. Liability coverage can also apply off your property.
Along with liability insurance, your homeowners’ policy should include dwelling coverage, personal property and additional living expenses.
You may also consider pet liability insurance, especially if you have dogs. This can assist if your pet causes bodily injury or property damage to someone else.
There are many ways to save on your home insurance discount. Bundling home and auto with the same company can save you money. These same insurance companies may also offer a loyalty discount. As most members of Generation X are married, some insurance companies offer discounts to married or widowed clients.
Shop around and discuss your El Paso home insurance options now so you can be set for the future.