Texas Commercial Auto Insurance Requirements

Every business vehicle on Texas roads must carry at least 30/60/25 in liability coverage, though companies operating commercial motor vehicles above 26,000 lbs face a $500,000 combined single limit minimum instead. Coverage requirements scale higher depending on vehicle weight, the type of cargo you haul, passenger capacity and whether your routes cross state lines.

Learn more about the commercial auto insurance coverage you need for your business in Texas, vehicle weight and cargo requirements, special coverage circumstances and penalties for noncompliance below.

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# Texas Commercial Auto Insurance Requirements

Written by Blest Papio

Updated: March 19, 2026

Advertising & Editorial Disclosure

What Commercial Auto Insurance Is Required in Texas?

Texas law mandates that every motor vehicle on public roads carry liability insurance meeting the minimums established in Transportation Code §601.072, and here's what commercial auto insurance requirements look like at the baseline:

$30,000 bodily injury per person
$60,000 bodily injury per accident (all persons combined)
$25,000 property damage per accident

The 30/60/25 baseline covers standard business vehicles that don't need to register with the Texas Department of Motor Vehicles as motor carriers. If your operation involves vehicles exceeding 26,000 lbs, for-hire passenger transport or hazardous materials, higher minimums under 43 TAC §218.16 apply. Each is detailed in the sections that follow.

Coverage minimums for Texas intrastate carriers transporting non-hazardous goods are tied directly to gross vehicle weight rating under 43 Texas Administrative Code §218.16(a). Once a carrier hauls across state lines or moves hazardous cargo, FMCSA federal thresholds take over.


26,000 lbs or less	30/60/25 liability	Standard business vehicles not required to register with TxDMV
26,000 lbs or less	$300,000 CSL	For-hire household goods carriers
26,001 lbs or more	$500,000 CSL	General freight carriers and household goods carriers registered with TxDMV
48,000 lbs or more	$500,000 CSL	Farm vehicles operating on public roads
10,001 lbs or more (interstate)	$750,000 CSL	Federal FMCSA-regulated carriers crossing state lines

Your GVWR, or gross vehicle weight rating, is the maximum safe operating weight assigned by the manufacturer, accounting for the vehicle itself, passengers, fuel and cargo combined. You can find your vehicle's GVWR on the certification label on the driver-side door jamb, in the owner's manual or on the manufacturer's website.

How many people your vehicle can carry, including the driver, determines which insurance tier applies under 43 TAC §218.16(a). The steepest increase hits at 27 passengers, where intrastate coverage jumps from $500,000 straight to $5 million.


15 or fewer (including driver)	30/60/25 liability	Standard business vehicles not registered as carriers
16–26 (including driver)	$500,000 CSL	Intrastate for-hire passenger carriers
27 or more (including driver)	$5,000,000 CSL	Intrastate for-hire passenger carriers
School buses (any capacity)	$500,000 CSL	Per Transportation Code §643.1015
1–15 (interstate)	$1,500,000 CSL	Federal FMCSA-regulated interstate passenger carriers
16 or more (interstate)	$5,000,000 CSL	Federal FMCSA-regulated interstate passenger carriers

Rideshare and transportation network company drivers in Texas fall under Insurance Code Chapter 1954, which applies to platforms like Uber and Lyft. The key distinction: coverage applies the moment you're logged on and available, and you don't need a passenger in the car for insurance obligations to start.


App on, waiting for request	Driver or TNC on driver's behalf	50/100/25 liability + UM/UIM + PIP
En route to pickup or transporting passenger	TNC	$1,000,000 aggregate CSL + UM/UIM + PIP

When a driver's personal auto insurance lapses or excludes TNC activity, Chapter 1954 shifts full liability to the transportation network company from the first dollar of any claim. That matters because most standard personal auto policies in Texas won't pay out during commercial ride-hailing, leaving a gap that only a rideshare endorsement or TNC-backed policy can fill.

Federal FMCSA hazmat classifications apply in Texas whether you're running intrastate or interstate routes. Non-hazardous cargo doesn't follow a separate cargo-based system. Texas ties those minimums to vehicle weight under 43 TAC §218.16(a), with household goods carriers carved out at a lower threshold.


General freight (intrastate, over 26,000 lbs)	$500,000 CSL	Non-hazardous goods on vehicles registered with TxDMV
Household goods (26,000 lbs or less)	$300,000 CSL	Furniture, personal property and similar items
Household goods (over 26,000 lbs)	$500,000 CSL	Same cargo on heavier vehicles
Oil and hazardous substances	$1,000,000 CSL	Oil per 49 CFR §172.101, hazardous waste and substances per 49 CFR §171.8
High-risk hazmat (10,001 lbs or more)	$5,000,000 CSL	Bulk hazardous substances in cargo tanks or hopper-type vehicles, Division 1.1/1.2/1.3 explosives, Division 2.3 Hazard Zone A materials and Class 7 highway route controlled quantities per 49 CFR Part 171
High-risk hazmat (under 10,001 lbs)	$5,000,000 CSL	Division 1.1/1.2/1.3 explosives, Division 2.3 Hazard Zone A, Division 6.1 Packing Group I Hazard Zone A and Class 7 highway route controlled quantities

Vehicle size doesn't reduce the hazmat obligation. Texas codifies separate $5 million tiers for vehicles both above and below 10,001 lbs when they're hauling the most dangerous materials.

WHEN DOES FEDERAL LAW APPLY OVER TEXAS COMMERCIAL AUTO INSURANCE LAW?

Your business falls under federal FMCSA insurance rules whenever vehicles carry cargo or passengers across state lines, or when you handle even one leg of an interstate shipment, even if your trucks never leave Texas for that leg. The federal threshold also captures any vehicle with a GVWR of 10,001 lbs or more operating in interstate commerce, no matter what it's carrying. To confirm which rules govern your fleet, check with the Texas Department of Motor Vehicles, review FMCSA insurance filing requirements or consult a licensed insurance professional.

Texas Commercial Auto Insurance Requirement Exemptions

Farm vehicles are the biggest exemption story in Texas: trucks under 48,000 lbs used in agricultural operations don't need TxDMV motor carrier registration or the $500,000 coverage floor, though they still require baseline 30/60/25 liability on public roads per Transportation Code §601.052. TxDMV registration rules also carve out cotton haulers, Railroad Commission vehicles and several other narrow categories.


Farm vehicles under 48,000 lbs GVWR	Standard 30/60/25 liability; no TxDMV motor carrier registration required
Cotton vehicles (Transportation Code §504.505)	Standard 30/60/25 liability; exempt from motor carrier registration
Former military or collector vehicles (25+ years old, exhibition use only)	Owner files affidavit with DPS; no financial responsibility required
Golf carts operated per §551.403	No road-use liability requirement
Off-highway vehicles operated per Chapter 551A	No road-use liability requirement
Volunteer fire department vehicles	Exempt from §601.051 financial responsibility
Government vehicles	Government self-insurance statutes
Vehicles registered with the Texas Railroad Commission	Regulated under Natural Resources Code §§113.131 and 116.072

If your vehicle touches a public road in Houston, Dallas, San Antonio, Austin or any other Texas city, the exemptions above won't shield you from standard or motor carrier insurance rules. Contact TxDMV or the Texas Department of Insurance at 800-252-3439 to verify whether a specific vehicle qualifies.

Texas Commercial Auto Insurance Alternatives

Four pathways exist under Transportation Code §601.051 for businesses that want to meet financial responsibility requirements without purchasing a standard commercial auto policy.

Surety bond: File a bond with the Texas Department of Public Safety under §601.121, backed by at least two individual sureties who own real property in Texas. Combined equity in the property must equal at least twice the bond amount, the bond requires court approval and the property must be certified free of tax liens by the county assessor-collector.
Cash deposit with the comptroller: Deposit cash or securities with the Texas Comptroller of Public Accounts under §601.122. The deposit must equal the same coverage amounts that a standard liability policy would provide.
Cash deposit with a county judge: Under §601.123, deposit at least $55,000 in cash or a cashier's check with the county judge where your vehicle is registered. The judge issues a certificate that the county sheriff acknowledges and files with DPS.
Self-insurance: Businesses with more than 25 registered motor vehicles can apply for a self-insurance certificate from DPS under §601.124. DPS must confirm your organization can pay judgments on an ongoing basis without jeopardizing operations. TxDMV-registered motor carriers have a separate self-insurance application through the Motor Carrier Division, which evaluates whether your financial condition supports bodily injury and property damage obligations independently.

Special Texas Commercial Auto Insurance Coverage Circumstances

Texas commercial auto policies don't automatically cover every operating scenario, and four situations commonly create gaps or trigger additional requirements.

Leased commercial vehicles

If your business leases rather than owns its commercial vehicles in Texas, confirm whether the lessor's policy names you as an insured or whether you need a standalone policy. Either way, a total loss exposes a gap: the 30/60/25 base or even $500,000 motor carrier minimum pays out based on the vehicle's depreciated value, not what you still owe on the lease. Gap coverage closes that shortfall between actual cash value and your remaining obligation.

Mexico border commerce

Commercial vehicles crossing into Mexico through El Paso, Laredo, McAllen or Brownsville must carry a liability policy issued by a Mexican insurer. Your Texas commercial auto coverage stops at the border with zero exceptions. Mexican liability law operates under a different framework than the U.S. system, and drivers can be detained after an accident until fault is resolved. Review the U.S. State Department's Mexico travel advisory for current conditions before planning cross-border routes.

Farm vehicles on public highways

Agricultural vehicles under 48,000 lbs skip TxDMV motor carrier registration but still owe baseline 30/60/25 liability coverage the moment they roll onto a public road. At 48,000 lbs or above, the exemption disappears. The vehicle must register with TxDMV and carry $500,000 CSL, even for short trips between fields and processing facilities.

Oil and gas field vehicles

Energy-sector vehicles face heightened exposure around drilling sites, refineries and pipeline corridors. State law already requires $1 million in coverage for oil transport under 43 TAC §218.16(a), but many oilfield service contracts push required limits well beyond that floor. Make sure your policy explicitly covers on-site operations, not just transit between locations.

Texas Commercial Auto Insurance Enforcement and Penalties

Texas officers verify coverage at traffic stops, through the TexasSure electronic database and during registration checks at county tax assessor-collector offices. TexasSure focuses on personal auto policies and commercial vehicle reporting remains voluntary, so officers often ask for physical proof of coverage when inspecting commercial trucks under Transportation Code §601.191.


First offense	$175–$350	Possible suspension	$100 reinstatement fee + SR-22 filing
Subsequent offense	$350–$1,000	Suspension likely	$100 reinstatement fee + SR-22 filing
Accident while uninsured	Personal liability for all damages	Suspension if judgment probable	SR-22 required + proof of coverage

Reinstatement after an insurance-related conviction in Texas requires an SR-22, a certificate your insurer files directly with the Department of Public Safety proving you carry active coverage. SR-22 status stays on your record for two years from the conviction date, costs $100 to reinstate and you can expect higher premiums for the duration.

How to Verify Your Business Meets Texas Commercial Auto Insurance Requirements

Texas commercial auto insurance spans at least six coverage tiers, so use this checklist to confirm every vehicle in your fleet carries the right level under state and federal rules.

1
Check whether any vehicles qualify for a registration exemption
Farm trucks under 48,000 lbs, cotton haulers and certain other vehicle types don't need TxDMV motor carrier registration. Even exempt vehicles still require at least 30/60/25 liability coverage for any public road use under Transportation Code §601.052.
2
Document how each vehicle is used in your operation
A vehicle's purpose (passenger transport, freight hauling, household goods delivery or local errands) drives which Texas coverage tier applies. Two identical trucks can fall under different insurance rules if one hauls freight and the other carries passengers.
3
Look up every vehicle's weight rating
The GVWR is printed on the driver-side door jamb. Any vehicle rated above 26,000 lbs triggers TxDMV registration and the $500,000 CSL minimum under 43 TAC §218.16(a).
4
Match each vehicle's liability limit to its category
Texas requires 30/60/25 for standard business vehicles, $500,000 CSL for TxDMV-registered motor carriers and $750,000 to $5 million for interstate operators depending on cargo and passenger count. Confirm the number on your declarations page matches the tier each vehicle falls into.
5
Confirm your policy classifications reflect real-world use
Review that each vehicle is listed with the correct use class under your Texas commercial auto policy, every regular driver is named and your coverage matches how the vehicle actually operates day to day. Misclassified vehicles are a common reason claims get denied.
6
Close any border or industry-specific gaps
Texas commercial auto policies don't cover incidents in Mexico, so vehicles crossing the border need standalone Mexican liability insurance. Oil and gas field operators should verify their Texas policy covers worksite activity, not just road transit.

Texas Commercial Auto Insurance Requirements: Bottom Line

Texas commercial auto insurance requirements range from 30/60/25 for standard vehicles up to $5 million for high-risk hazmat carriers, and the tier that applies to your business depends on vehicle weight, cargo classification, passenger capacity and interstate status. Pull each vehicle's declarations page, compare the listed coverage against its tier and correct any gaps before they become claim denials.

Texas Commercial Auto Insurance Requirements: Next Steps

Knowing what Texas law requires is only half the equation: the other half is deciding how much coverage actually makes sense for your risk profile. Legal minimums establish a baseline, not a recommendation. Most Texas businesses need limits above that floor to cover real-world exposure.

If your goal is legal compliance

Start by pulling each vehicle's declarations page and comparing the listed limits against the tier that applies: 30/60/25, $500,000 CSL or the relevant federal minimum. Then confirm your insurer's vehicle use classification matches reality, because a mismatch is the fastest way to have a claim thrown out when you get commercial auto insurance coverage.

If your vehicles are valuable or highly visible

Texas's $25,000 property damage minimum won't go far after a serious collision, especially in congested corridors like I-35 through Dallas or I-10 through Houston. Branded vehicles, mounted equipment and tool-loaded trucks all raise the dollar exposure in a lawsuit.

If you transport passengers

The $500,000 intrastate minimum for 16 to 26 passengers is a starting point, not a ceiling. A single multi-passenger injury event can blow past that limit quickly, and venues, school districts and corporate shuttle contracts across Texas commonly set their own floors at $1 million or higher.

If you haul goods or equipment

Your Texas liability limit should reflect the worst-case damage your loaded vehicle could cause, not just the legal minimum. A $500,000 motor carrier policy may fall short when heavier payloads or high-value equipment are involved in an at-fault accident on I-35 or I-10.

If your business signs contracts

Read the insurance clauses before you sign. Shippers, brokers and commercial landlords across Texas routinely require $1 million in liability, which is double the $500,000 state motor carrier minimum. Non-compliant carriers lose the contract.

If your business operates near the Mexican border

Buy Mexican liability insurance before sending any vehicle through El Paso, Laredo, McAllen or Brownsville. Your Texas commercial auto policy provides zero coverage once a vehicle crosses into Mexico, and Mexican law holds drivers personally liable without a local policy in force.

About Blest Papio

Blest Papio is a Content Producer at MoneyGeek specializing in small business insurance. With five years of experience in insurance and finance writing and hands-on perspective as a former business counselor, he understands the risks that come with running a business and what it takes to protect against them.

Blest focuses on commercial auto, cyber, property and specialty business insurance. He digs deep into policy details, regulations and provider offerings so businesses can find the coverage they need and avoid financial fallout. His goal is to translate technical insurance language and insurer offerings into guides you can act on.

Whether you're insuring company vehicles, managing cyber liability or protecting your commercial property, Blest aims to guide you through your risks to help you find coverage you truly need, not sell you a policy.

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sources

Texas Legislature. "Transportation Code Chapter 601: Motor Vehicle Safety Responsibility Act." Accessed March 23, 2026.
Texas Secretary of State. "43 TAC §218.16(a): Insurance Requirements — Motor Carrier Registration." Accessed March 23, 2026.
Texas Department of Motor Vehicles. "TxDMV Number: Motor Carrier Registration." Accessed March 23, 2026.
Federal Motor Carrier Safety Administration. "Insurance Filing Requirements." Accessed March 23, 2026.
U.S. Department of Transportation. "49 CFR Part 171: General Information, Regulations and Definitions." Accessed March 23, 2026.
U.S. Department of State. "Mexico Travel Advisory." Accessed March 23, 2026.

Texas Commercial Auto Insurance Requirements

What Commercial Auto Insurance Is Required in Texas?

Texas Commercial Auto Insurance Requirements by Vehicle Weight

Texas Commercial Auto Insurance Requirements by Passenger Count

Texas Commercial Auto Insurance Requirements by Service Type

Texas Commercial Auto Insurance Requirements by Cargo Type

Texas Commercial Auto Insurance Requirement Exemptions

Texas Commercial Auto Insurance Alternatives

Special Texas Commercial Auto Insurance Coverage Circumstances

Texas Commercial Auto Insurance Enforcement and Penalties

How to Verify Your Business Meets Texas Commercial Auto Insurance Requirements

Check whether any vehicles qualify for a registration exemption

Document how each vehicle is used in your operation

Look up every vehicle's weight rating

Match each vehicle's liability limit to its category

Confirm your policy classifications reflect real-world use

Close any border or industry-specific gaps

Texas Commercial Auto Insurance Requirements: Bottom Line

Texas Commercial Auto Insurance Requirements: Next Steps

sources