Commercial auto insurance in Michigan helps cover the costs of accidents if you or an employee is at fault. Accidents, bad roads, weather hazards, theft, and vandalism are all too common occurrences. With the right policy, your coverage can help cover medical expenses and damaged property.
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Whether you’re a business owner with a fleet of vehicles or use your vehicle for business purposes, you will benefit from learning about commercial auto insurance.
We offer a wide range of different plans to choose from, allowing you to choose the best plan for your unique needs.
What is commercial auto insurance in Michigan?
A commercial auto insurance policy is similar to your basic auto insurance policy. However, instead of just protecting you, it is a specialized type of insurance that includes additional protection for your company and employees.
On top of the extra protection you receive with commercial insurance, a commercial auto policy is tax-deducible.
Having collision and higher liability coverage is beneficial because both the driver and other driver’s medical and repair costs will be covered if an accident occurs. This protects a business owner from serious financial risks, as they could lose their entire company trying to afford expenses from an accident.
Typically, you will qualify for commercial auto insurance if you use your vehicle for business purposes, such as making deliveries, running errands, or traveling long distances. To be sure, reach out to our professional insurance agents.
What is covered with commercial auto insurance?
A commercial vehicle policy can provide coverages such as liability, collision, comprehensive, personal injury protection, and uninsured motorist coverage. With these types of coverage and add-ons, you will be protected from accidents, road hazards, weather hazards, theft, and vandalism.
Types of coverage and add-ons
For those eligible, the following coverages are the most common.
Physical damage coverage
- Collision loss: Damage from auto accidents, regardless of who is at fault
- Comprehensive loss: Damage from theft, vandalism, fire, or a flood
- Bodily injury coverage: Pays for injuries or death resulting from an accident when you’re at fault and may provide you with a legal defense
- Property damage coverage: For accident-related damage to another person’s property, and may provide you with a legal defense
Additional coverage & their benefits
There is a wide range of add-ons you can choose from, depending on what type of protection you are looking for.
You will receive assistance if one of your business vehicle’s batteries dies, gets a flat tire, or you get locked out.
Your policy will cover a rental vehicle for you if you have been in an accident so that you won’t go without transportation.
Auto loan or lease coverage
If your vehicle is a total loss after an accident, your policy will cover the difference between the unpaid amount on the loan lease.
Though typical towing is offered with most policies, expanded includes jumpstarts and minor roadside repairs.
New vehicle replacement cost coverage
In the case of a total loss due to a crash or vandalism, your vehicle will be replaced with the same vehicle or a comparable one.
Uninsured or underinsured motorist coverage
If the at-fault driver is uninsured or has insufficient insurance, your policy will help cover expenses from an accident.
Personal injury and medical payments coverage
If you or your passenger’s health insurance does not cover medical expenses, your policy will cover the costs.
Vehicles covered by a commercial auto insurance policy
While Michigan commercial auto insurance is commonly associated with trucks or commercial vans, regular cars and vehicles may also require a commercial auto policy if they are used for business purposes.
Commercial auto coverage is also referred to as commercial car insurance, commercial truck insurance, or fleet insurance. They are all the same and offer the same type of protection.
Automobiles that are suited for commercial auto insurance are:
- Cars, vans, SUVs, and small trucks
- Large trucks, including box, specialty, and dump trucks
- Trailers in a variety of sizes and types
While these are the most common types that may need a commercial auto policy, this is only a small list.
If you are interested in a more exhaustive list, a commercial auto insurance company such as Frost & Remer can help you determine what coverage is needed for your business.
Frequently asked questions
Is commercial auto insurance required by law?
In most states, including Michigan, yes, it is required by law.
How much commercial auto insurance do I need?
In Michigan, the required amounts are $20,000 bodily injury liability per person, $40,000 bodily injury liability per accident, and $10,000 property damage liability per accident.
What happens if I need to purchase more insurance?
You can always reach out to your insurance agent and add more coverage to your policy.
What if I cancel my policy?
When you cancel your policy, you put yourself at risk of having to pay more later. Most insurance companies charge higher rates to businesses that start and stop coverage.
Do I need commercial auto insurance for my personal vehicle?
If you use your vehicle for business purposes, then you may be eligible. However, coverage does not apply to those only driving back and forth to work or using their vehicle on occasion.
How Frost & Remer can help
Finding the right insurance policy and amount of protection is an essential aspect of your business. Frost & Remer can help you find a policy that protects you, your business, your assets, and your employees while still being affordable.
Contact Frost & Remer today to schedule your free full risk assessment. Ask about our Small Business Insurance, Commercial Property Insurance, Builder’s Risk, Worker’s Compensation Insurance, and General Liability Insurance as well, to make sure your business is fully covered.