Commercial auto insurance in Texas

Who needs a TxDMV number

TxDMV says a motor carrier must register for a TxDMV number if it operates in Texas and:

• Operates a commercial motor vehicle or combination with a gross weight, registered weight or gross weight rating over 26,000 pounds.
• Transports hazardous materials in a quantity that requires placarding.
• Operates a farm vehicle of 48,000 pounds or more.
• Operates a vehicle designed to carry more than 15 passengers, including the driver, or a commercial school bus.
• Transports household goods for compensation, regardless of vehicle weight.

Get a USDOT number first

TxDMV requires a valid USDOT number before you start TxDMV registration, even if you never leave Texas. If you operate only within Texas, register the USDOT number as intrastate, not interstate. Interstate operations fall under federal rules, which this guide doesn't cover.

Texas insurance minimums for motor carriers

TxDMV lists these minimum liability amounts by type of operation:

• Vehicles over 26,000 pounds (standard carriers): $500,000.
• Household goods carriers with vehicles under 26,000 pounds: $300,000.
• Hazardous materials: $1,000,000, or $5,000,000 for the highest-risk materials.
• School buses, and buses seating 15 to 26 passengers: $500,000.
• Buses seating 27 or more passengers: $5,000,000.

Keeping proof on file

Your insurer files proof of commercial auto liability with TxDMV on Form E, and household goods movers also need cargo coverage filed on Forms H and I. TxDMV says failing to keep continuous proof of insurance on your certificate in its credentialing system (TxMCCS) can lead to administrative penalties, sanctions or revocation of the certificate.

Treat a cancellation or nonrenewal notice as urgent. If your policy ends without a replacement filing, your certificate is at risk even if the truck is parked.

Smaller business vehicles

Pickups, vans and cars below the TxDMV thresholds don't need a TxDMV number, but they still need at least Texas's basic liability coverage of 30/60/25. The question for these vehicles is usually whether a personal policy will respond at all.

The Texas Department of Insurance's auto guide lists driving for business among the things most personal auto policies don't cover. The same list includes driving for a ride-hailing service or delivering food or other items for a fee, and driving a car that isn't yours but that you use regularly, like a company-owned car.

Signs you need a commercial policy

Whether a personal policy covers a given trip depends on its wording, but these situations often point to commercial auto:

• The vehicle is titled to a business, LLC or corporation.
• You carry tools, equipment or materials to job sites, or tow a work trailer.
• Employees drive the vehicle, or drive their own cars on company errands (ask about hired and non-owned auto coverage).
• You haul goods or people for pay.
• A customer or general contractor requires a certificate naming them as additional insured.

Gig, delivery and rideshare drivers

If you drive your own car for a ride-hailing app or deliver food or packages for a fee, you aren't usually a motor carrier, but TDI's auto guide says most personal auto policies don't cover accidents that happen while you're doing that work. Ask your insurer whether it offers a rideshare or delivery endorsement, and find out what the platform's own coverage includes during each phase of a trip. Our Texas rideshare guide goes deeper.

What to have ready for a quote

Gather the VIN, gross vehicle weight rating, and how each vehicle is used; a list of drivers with license numbers; your USDOT and TxDMV numbers if you have them; the radius you operate in; and any contract insurance requirements. Ask the agent whether the policy will make the Form E filing for you and how fast.