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 gets 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:
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 in 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 where 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
Our commercial policies require a minimum residual liability limit of $50,000 per person and $100,000 per accident for bodily injury, and $25,000 for property damage (i.e., 50/100/25). 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:
Common professions that need commercial auto insurance in MI:
Browse more examples of professions we insure.
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
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