Michigan Commercial Auto Insurance
Customizable coverage options for your business vehicles
Protect your business vehicles with a Michigan commercial auto policy
Many of Michigan’s 886,000 small businesses need commercial auto insurance for vehicles they use for work. Personal auto insurance won’t cover most commercial vehicles because they’re exposed to more risk than personal autos.
Hundreds of thousands of small business owners across the nation trust us to protect their work vehicles and livelihoods. Each get customized coverage to match their unique needs whether they own a manufacturing business in Livonia or a small farm near Traverse City.
Commercial auto coverage for a variety of business types:
Business Auto
Vehicles driven by employees or used for business activities, such as visiting clients or making deliveries, usually need commercial auto insurance. Personal auto insurance usually doesn’t cover vehicles used for work purposes.
Contractors
Contractors need commercial auto coverage for things like transporting various tools and supplies and traveling between job sites. These are business-related activities that need the additional protection of a commercial policy.
Food Truck
Food trucks and other food service businesses like restaurants and ice cream vendors depend on their commercial vehicles. Most food trucks have expensive equipment attached to them that a commercial auto policy can cover.
For-Hire Livery
Any vehicle used to transport people for a fee must be insured by a commercial auto policy. This includes taxis, limousines, and non-emergency medical transportation (NEMT) vehicles. Some ridesharing vehicles might require commercial coverage.
Heavy Truck
We’re the #1 truck insurer in the nation*, insuring everything from dump trucks to tractor trailers. Our network of truck repair shops and specialty claims services is accessible whether you’re driving locally or outside of Michigan.
Tow Truck
We offer protection whether you own a wrecker, rollback or roadside repair vehicle. You can add specialty tow coverages like On-hook and Garagekeepers Legal Liability to protect you when a customer’s vehicle is in your possession.
Michigan commercial auto insurance cost
Several factors affect the cost of your Michigan commercial auto policy, including your:
Profession
Some industries have more risk than others. A handyman who carries tools and equipment to various job sites every day can expect to pay more than an insurance agent who runs occasional errands.
Vehicle
Your vehicle’s size and use affect your rate. A large dump truck used for hauling bulk gravel will have a higher premium than a small dump truck used for carrying mulch for light landscaping jobs.
Driving history
Your commercial auto insurance carrier will run a motor vehicle report on all drivers with access to your business vehicles. Drivers with accidents or violations on their driving record will usually cause your rate to increase. You can expect your insurance company to take the past three years of driving history into account.
Location
It’s common to pay more for commercial auto coverage in a large city like Detroit than a smaller city like Grand Rapids. Keep in mind, prices are usually higher in locations that experience more claims or more expensive settlements than other locations. Areas susceptible to weather-related events such as tornadoes and floods are also factors.
Travel radius
The distance you routinely travel can influence your commercial auto rate. A vehicle with a local route within Dearborn’s city limits is considered lower risk than a vehicle with a regional route that covers the greater Detroit metropolitan area.
Coverage needs
The amount of coverage you need affects your premium. Policyholders with Michigan’s state minimum limits will pay less than a policyholder needing a $1M policy limit.
Discover ways to save on your commercial auto insurance.
Michigan commercial auto insurance requirements
Michigan law requires all vehicle owners to purchase mandatory no-fault insurance, which is made up of three primary coverages:
1. Personal Injury Protection (PIP) – Pays for all necessary medical expenses and a portion of lost wages for the drivers and passengers of your vehicles.
2. Property Protection Insurance (PPI) – Pays for damage your car does to other people’s property in Michigan including their buildings, fences and properly parked vehicles.
3. Residual Liability Insurance (RBI/PD) – Pays for bodily injury and property damage you cause to others under certain circumstances where Michigan’s no-fault law doesn’t apply.
Your residual liability coverage only protects you in certain situations for which you could be sued. This includes:
- If you cause an accident in Michigan that seriously injures or kills someone
- If you’re involved in an accident in Michigan with a non-resident whose vehicle isn’t registered in Michigan
- If you’re involved in an accident outside of Michigan
The state’s minimum residual liability limits are $20,000 per person and $40,000 per accident for bodily injury, and $10,000 for property damage (i.e. 20/40/10). You might be required to carry higher limits depending on your insurer’s underwriting requirements or the types of vehicles listed on your policy.
Michigan commercial auto resources:
- Michigan Auto Insurance Guide (Michigan Department of Insurance and Financial Services)
- Motor Carrier Insurance Requirements (DOT Operating Authority)
Common professions that need commercial auto insurance in MI:
- Landscapers
- Handyman services
- Auto mechanics
- Painting contractors
- Snow plow services
- Food trucks
- Cleaning services
- Real estate agents
- Pizza delivery
- Distributors
Browse more examples of professions we insure.
Get Michigan commercial auto insurance with Progressive
We’re the #1 commercial auto insurer* in the country, insuring over 1.5 million commercial vehicles. Here’s a few of the many reasons small business owners trust us:
24/7 policy service by phone or online
We understand you might need help outside of regular business hours whether you need to adjust your coverages, request an insurance certificate or pay a bill.
Specialized commercial claims adjusters
Our in-house adjusters are specialized in handling commercial auto claims to help you get back on the road fast after an accident.
Discounts
Save up to 15% by paying your policy in full and take advantage of our other commercial discounts† to get the best rate for your Michigan policy.
Business insurance options
In addition to commercial auto insurance, we can help you find other business coverages including general liability, professional liability, workers’ compensation and more.
Commercial auto insurance anywhere in Michigan
We offer Michigan commercial auto insurance statewide including these major cities:
- Detroit
- Warren
- Ann Arbor
- Flint
- Livonia
- Grand Rapids
- Sterling Heights
- Lansing
- Dearborn
- Troy
More information
* No. 1 truck and commercial auto insurer from SNL Financial's 2019 national written premium data.
†Discounts vary and may not be available in all states and situations.