When you think of commercial auto insurance, you might envision a large-sized truck. This is more than likely because trucks are often associated with work vehicles. While trucks are one type of vehicle covered by Michigan commercial auto insurance, trailers, vans, buses, and cars can be too.
Those who typically qualify for commercial auto insurance own a business or use their vehicles for work purposes. The type of vehicle you drive is not as much of a factor as is how you use the vehicle. When you apply for insurance, there will be questions relating to how the vehicle is used. This information lets your insurance company know if your vehicle or trailer should be covered under a commercial auto insurance policy.
Commercial auto insurance policies are similar to personal auto insurance policies, with one main difference being that they provide you with more coverage. When you are a business owner or driving your vehicle for business, you need that extra coverage. If you don’t have the right policy, one accident could cost you a fortune or a lawsuit.
It could be helpful to schedule an appointment with a professional insurance agent to determine whether you qualify for Michigan commercial auto insurance. If you do, you will want the right amount of protection, whether you have one vehicle or a fleet of business vehicles.
An appropriate policy for you will be one that you feel comfortable with and that has high enough liability coverage to protect your assets.
Commercial auto insurance coverage in Michigan
In Michigan, there are two main types of commercial auto insurance policies: physical damage and liability coverage. Included within these commercial auto insurance policies are often six types of coverage.
This pays for repairs to your vehicle when damage occurs from an accident. The damage doesn’t necessarily have to be caused by another vehicle, as it can be caused by a random object (garbage can, rock, etc.) as well.
Comprehensive physical damage coverage pays for damage that comes about from non-collision causes, such as weather, flood, fire, vandalism, or theft.
Bodily injury liability coverage
This coverage pays for accident-related injuries or death when you’re at fault. In some cases, it may even provide you with a legal defense.
Property damage coverage
Property damage coverage pays for accident-related damage to someone else’s property when you’re at fault. In some cases, it can provide you with a legal defense.
Uninsured or underinsured motorist coverage
In an accident where the at-fault driver does not have liability insurance or doesn’t have enough to cover your expenses, you will still be protected through your commercial auto insurance policy.
Personal injury or medical payments coverage
This pays for medical expenses if you or your passenger’s health care insurance does not cover the costs, regardless of fault. This could include needs such as a hospital stay, medication, or x-rays.
Does the state of Michigan require commercial auto insurance?
By law, the state of Michigan does require you to obtain commercial auto insurance. Any company that owns a fleet of automobiles that are designed for commercial purposes needs this special kind of insurance policy. It is the only way to protect yourself, your vehicles, and your business.
You cannot legally drive in Michigan or any state without standard and commercial auto insurance. The main reason for this is because of your liability for any damage you cause. Without an insurance policy, those whose vehicles are damaged or who have been injured would not be protected financially.
You may be a careful and responsible driver, but unfortunately, accidents do happen. While a commercial auto insurance policy protects others when you are at fault, it protects you as well.
Not everyone is a safe driver. Someone may hit your vehicle, resulting in thousands of dollars of damage or medical costs. This is the type of unforeseen and unfortunate event you want to be prepared for.
What types of vehicles are covered under this type of policy?
Commercial auto insurance covers many different types of vehicles. Including but not limited to the following vehicles used for business purposes:
- Tow trucks
- Trucks for construction
- Ice cream trucks
- Refrigerated trucks
- City buses
- School buses and vans
- Passenger vans
- Home movers trucks and vans
- Log haulers
- Dump trucks
- Garbage trucks
- Catering company vehicles used to deliver food and drinks
Aside from these vehicles, any automobiles that are being used for business-related services will need commercial auto insurance. However, this does not mean that using your car to run errands on occasion makes your vehicle a commercial vehicle.
Commercial vehicles are used for at least several hours each day. This is why they require a particular policy, as they are on the road longer and exposed to more risks than personal vehicles.
Keep your business protected from the unexpected with Frost & Remer
If you are looking for an affordable yet professional and reputable insurance company, we have you covered.
There are many advantages to choosing commercial auto insurance over any other type of insurance for your business fleet. It will help you protect your wallet, property, and your business name. We know that the last thing you want is for one single accident to put your company in debt or affect your professional reputation.
At Frost and Remer, our customers mean everything to us. This is why we strive to help you feel safe and worry-free. When you know that your vehicles and drivers are insured in one secure policy, it will ease your mind.
Contact us today to ask about commercial auto insurance, and we will give you a full policy review and risk assessment. With this information, we will provide you with the best coverage and a premium you can afford.
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