Make sure to get the right type of insurance policy for commercial vehicle leasing.
Commercial vehicle leasing is your ticket to flexibility and growth. But before you roll out, understand the insurance landscape. Texas has specific requirements to protect you and your investment. Navigating these rules can be complex, but today we’ll cover the essentials of getting the critical insurance you need for your fleet vehicles.
Get the customized commercial vehicle leasing solution you need, and drive with confidence. Partner with Glesby Marks today!
Key Insurance Types for Commercial Vehicle Leasing
When you’re leasing a commercial vehicle in Texas, there are a few key insurance types you absolutely need to know about. Think of them as the foundation of your protection on the road. Let’s break down the essentials.
Commercial Auto Liability Insurance
First up is Commercial Auto Liability Insurance. This is the cornerstone, the one you can’t legally drive without. It steps in when you’re at fault in an accident, covering bodily injury and property damage to others. Texas sets minimum coverage limits at $30,000 per person for bodily injury, $60,000 per accident for bodily injury, and $25,000 per accident for property damage. But remember, these are just the minimums. Depending on your business and the leased vehicle, you might need more.
Physical Damage Insurance
Next, we have Physical Damage Insurance. This one’s all about protecting the leased vehicle itself. Think of it as coverage for when things go wrong, like accidents, theft, vandalism, or even hail damage. It usually comes in two flavors: collision and comprehensive. Collision covers damage from colliding with another vehicle or object. Comprehensive covers everything else, from natural disasters to hitting a deer. Your leasing company will likely require this, so make sure you understand what’s included.
Uninsured/Underinsured Motorist Coverage
Finally, there’s Uninsured/Underinsured Motorist Coverage. It’s there for you when the other driver is at fault but doesn’t have enough (or any) insurance to cover the damages. It can help with medical bills, lost wages, and other costs resulting from the accident. In Texas, this coverage is optional but highly recommended. Don’t leave yourself vulnerable to the financial consequences of someone else’s lack of responsibility.
Additional Insurance Considerations
Beyond the basics, there are a few more insurance types you might need depending on your specific situation. These add-ons can provide crucial protection for your business and its assets.
Cargo Insurance
If you’re hauling goods in your leased vehicle, Cargo Insurance is a must. It covers damage or loss to the cargo you’re transporting, whether it’s due to accidents, theft, or other covered events. The value of your cargo will influence the coverage amount you need.
Non-Trucking Liability Insurance
This one’s important if you plan to use the leased vehicle for personal use outside of business operations. It covers liability when you’re not actively engaged in work-related activities. Your leasing company might require this to ensure you’re protected even during personal time.
Factors Affecting Insurance Costs
Insurance premiums aren’t one-size-fits-all. Several factors come into play when determining how much you’ll pay for commercial vehicle leasing insurance in Texas.
Type of Vehicle
The type of vehicle you lease significantly impacts your insurance costs. Larger vehicles, like box trucks or semi-trailers, typically command higher premiums due to their increased potential for damage and liability. Similarly, specialized vehicles with unique equipment might also require additional coverage and incur higher costs.
Coverage Limits and Deductibles
The level of coverage you choose directly affects your premium. Higher coverage limits provide greater financial protection but come with higher premiums. Similarly, opting for lower deductibles means you’ll pay less out of pocket in the event of a claim but might face higher monthly premiums.
Location
Where you operate your business and where the leased vehicle is primarily garaged can also influence insurance costs. Areas with higher traffic density, crime rates, or accident rates might lead to higher premiums.
Business Use
The nature of your business operations and how you use the leased vehicle can impact insurance rates. Vehicles used for long-distance hauling or frequent deliveries might face higher premiums compared to those used for local deliveries or service calls.
Your Partner for Trusted Commercial Vehicle Leasing
Glesby Marks offers adaptable leasing solutions for your business, and can help guide you through the insurance process. Contact us today to get started!