Michigan Commercial Vehicle Insurance
Get a full analysis of Michigan commercial vehicle costs, coverage, and companies.
Written by
Ann Herro has been writing about insurance and employee benefits for over 15 years. She has covered topics as easy as insuring a car, and as difficult as transparency in healthcare costs.
Find the Best Commercial Vehicle Insurance Options in Michigan
There are thousands of small businesses based in Michigan. While they may offer the opportunity for wealth and income, these businesses often have inherent financial risks. These risks increase significantly when company-owned vehicles are part of the equation.
A Michigan commercial vehicle insurance policy can prevent a serious accident from impacting your company's financials. In addition, an independent insurance agent can help you find competitively priced coverage that is compliant with all state and federal laws and affordable for your business.
Best Commercial Vehicle Insurance Companies in Michigan
There are numerous insurance companies that offer commercial vehicle insurance in Michigan. The following are some of the best commercial vehicle insurance companies in Michigan. They are highly rated for their mix of valuable coverage offerings and competitive pricing.
- Progressive: Progressive is based in Ohio but offers commercial vehicle insurance across all 50 states, including Michigan. Michigan residents can look to Progressive for most of their business insurance needs.
- Nationwide: Nationwide provides commercial auto insurance and other popular types of business insurance coverage in Michigan. The company is headquartered in Columbus, OH, and is represented by independent insurance agents in 50 states.
- Liberty Mutual: Liberty Mutual is headquartered in Boston, MA, and has been offering business insurance since 1912. Today, the company offers a flexible, multi-line range of coverages, including commercial vehicle insurance, designed to meet the needs of any business, regardless of size or industry.
- Travelers: Travelers offers highly rated commercial vehicle insurance in Michigan. The company provides a variety of other business insurance options, including inland marine, workers' compensation, and general liability.
- West Bend Mutual Insurance Company: West Bend is a mutual insurer, which means that it is owned by its policyholders. West Bend offers commercial vehicle coverage and other types of business insurance in Michigan.
An independent insurance agent in your area can help you learn more about these and other MI commercial vehicle insurance companies. A local agent can help you get competitive quotes for the coverage that fits your needs.
Michigan Commercial Vehicle Insurance Requirements
Michigan is a no-fault state, which means that your insurance will pay your own injury claims up to a specified limit, regardless of who is at fault for the accident. Drivers have limited ability to sue an at-fault driver for damages unless an accident involves serious injuries or fatalities.
All Michigan drivers — both personal and commercial — must have a minimum amount of insurance in order to comply with state law. Minimum coverage must include:
- Personal injury protection (PIP): Pays your medical expenses and some lost income if you are injured in an accident.
- Property protection insurance (PPI): Pays for damage to stationary property (e.g., a building or a light pole) up to $1 million per crash.
- Residual bodily injury and property damage: Pays for third-party medical bills and car repairs under limited circumstances due to Michigan’s no-fault laws. Required limits are 20/40/10, or $20,000 per person, $40,000 per accident, and $10,000 for property damage.
Trucks over 10,000 pounds have additional state and federal regulations that they must comply with, including additional liability insurance requirements. The amount of liability insurance required for trucks depends on several factors, including:
- The truck’s weight
- Whether the truck is involved in interstate commerce
- Whether the truck is transporting people, household goods, hazardous materials, etc.
Your independent insurance agent can help you learn more about the requirements for commercial vehicle insurance in Michigan.
What Commercial Vehicle Insurance Covers in Michigan
Commercial auto insurance is a specialized form of insurance that covers company-owned cars, vans, trucks, and other vehicles such as limousines. Unlike personal auto insurance, these policies often carry higher insurance coverage amounts. Even if you are a small business owner, you will most likely need commercial vehicle coverage if you use your personal vehicle for work-related purposes.
All commercial vehicle insurance policies in Michigan will include the state-mandated PIP and liability coverage. In addition, insurance companies offer several other types of coverage that may be included as standard in their policies or offered as optional coverage.
- Collision coverage: Covers damage to your vehicle sustained in a collision, regardless of who was at fault.
- Comprehensive coverage: Covers the cost to repair damage to your vehicle due to non-collision events such as hail, fire, and theft.
- Uninsured motorist coverage: Covers your employee’s medical expenses and your vehicle’s damage following an accident caused by an uninsured or underinsured driver.
- Towing and roadside assistance: Covers the cost of a service call if your company vehicle becomes disabled while it is out on the road.
- Non-owned or hired auto liability insurance: Provides liability coverage for non-owned vehicles being used for business purposes, such as when you rent or lease a vehicle or when you or an employee use a personal vehicle for business purposes.
Your local independent insurance agent can help you determine which coverage types may be beneficial for your unique needs.
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Average Cost of Commercial Vehicle Insurance in Michigan
Commercial vehicle insurance costs in Michigan can vary significantly from one business to the next. Insurance companies assess risk and calculate rates according to a variety of factors that are unique to your business, including:
- The number of vehicles your business is insuring
- Each vehicle’s type, year, make, model, and safety features
- Each vehicle’s passenger capacity if used for transporting people
- Whether your vehicle(s) will be used to transport hazardous materials
- The estimated number of miles your vehicle(s) will be driven annually
- The driving histories of the employees who will be operating the vehicles
- The amount of coverage you wish to purchase
Because each insurance company has its own method for determining costs, it pays to compare rates before purchasing a policy. That way, you can be sure you are getting the coverage you want at a competitive price. An independent insurance agent can help you understand all of the risks you face and get quotes for affordable commercial auto insurance in Michigan.
How to Find the Best Commercial Vehicle Insurance Quote in Michigan
Finding the best commercial auto insurance quote in Michigan requires comparing several insurance companies and making an informed choice. But you don’t have to search alone.
An independent insurance agent in Michigan can help you obtain quotes and choose the one that offers the best coverage for your needs and budget. A local agent can answer your insurance-related questions, offer trustworthy advice, and obtain customized quotes from multiple insurance companies. An independent agent works for you, free of charge, to help you through the process.
Michigan Commercial Vehicle Insurance FAQs
Commercial vehicles are assumed to face greater risks than most personal vehicles. They are out on the road more and, for that reason alone, have a greater risk of being involved in a crash.
If your commercial vehicle is involved in an accident that results in serious injuries or fatalities, you can be faced with a very expensive lawsuit. And even minor fender-benders can result in property damage costs and loss of income for your business. Any Michigan business that owns vehicles needs commercial auto insurance to protect itself from the large financial losses that can result from a car accident.
Michigan is a no-fault state, which means that your insurance will pay your own injury claims up to a specified limit, regardless of who is at fault for the accident. Drivers have limited ability to sue an at-fault driver for damages unless an accident involves serious injuries or fatalities.
A certain amount of auto insurance is required by law in Michigan. All commercial vehicles must have commercial auto insurance that includes at least personal injury protection (PIP), property protection insurance (PPI), and residual bodily injury and property damage coverage. Trucks over 10,000 pounds have additional state and federal regulations that they must comply with, including additional liability insurance requirements.
In addition to the state-mandated personal injury protection and liability coverage, commercial auto insurance in Michigan can include the following types of optional coverage:
- Collision coverage: Covers damage to your vehicle sustained in a collision, regardless of who was at fault.
- Comprehensive coverage: Covers the cost to repair damage to your vehicle due to non-collision events such as hail, fire, and theft.
- Uninsured motorist coverage: Covers your employee’s medical expenses and your vehicle’s damage following an accident caused by an uninsured or underinsured driver.
- Towing and roadside assistance: Covers the cost of a service call if your company vehicle becomes disabled while it is out on the road.
- Non-owned or hired auto liability insurance: Provides liability coverage for non-owned vehicles being used for business purposes, such as when you rent or lease a vehicle or when you or an employee use a personal vehicle for business purposes.
All Michigan drivers — personal and commercial — must have a minimum amount of insurance in order to comply with state law. Minimum coverage must include:
- Personal injury protection (PIP): Pays your medical expenses and some lost income if you are injured in an accident.
- Property protection insurance (PPI): Pays for damage to stationary property (e.g., a building or a light pole) up to $1 million per crash.
- Residual bodily injury and property damage: Pays for third-party medical bills and car repairs under limited circumstances due to Michigan’s no-fault laws. Required limits are 20/40/10, or $20,000 per person, $40,000 per accident, and $10,000 for property damage.
Trucks over 10,000 pounds have additional state and federal regulations that they must comply with, including additional liability insurance requirements. The amount of liability insurance required for trucks depends on several factors, including:
- The truck’s weight
- Whether the truck is involved in interstate commerce
- Whether the truck is transporting people, household goods, hazardous materials, etc.
Business owners in Michigan can deduct from their taxes the ordinary and necessary cost of any business insurance policy as a business expense. This includes any insurance policy that is common, helpful, and appropriate for your industry. What’s more, most businesses are required to carry some types of business insurance — including commercial auto insurance — because of state laws, industry regulations, or contracts. Premiums for these policies are tax-deductible.
In addition, self-employed people who use their cars for business-related purposes can deduct many of the expenses associated with that vehicle, including car insurance premiums. If you use your car strictly for work-related purposes, you can write off all costs associated with operating and maintaining it. If your car use is mixed between business and personal reasons, you can only deduct costs that are related to the business usage of the vehicle.
Commercial vehicle insurance costs in Michigan can vary significantly from one business to the next. In general, commercial auto insurance costs more than personal auto insurance.
What you’ll pay for commercial vehicle insurance in Michigan depends on:
- The number of vehicles your business is insuring
- Each vehicle’s type, year, make, model, and safety features
- Each vehicle’s passenger capacity if used for transporting people
- Whether your vehicle(s) will be used to transport hazardous materials
- The estimated number of miles your vehicle(s) will be driven annually
- The driving histories of the employees who will be operating the vehicles
- The amount of coverage you wish to purchase
Liberty Mutual, Nationwide, Travelers, Progressive, and West Bend Mutual Insurance Company are some of the best commercial vehicle insurance companies in Michigan. They are highly rated for offering broad coverage, top-notch customer service, and a variety of affordable options for business owners.
Searching for the best and most affordable commercial auto insurance in Michigan can be frustrating and confusing. That’s why it pays to have an experienced insurance professional in your corner.
Find an independent insurance agent in Michigan now, and get one-on-one consultation and affordable options for the best coverage for your unique needs. Your agent will work with you free of charge, offering you a variety of options so you can make the best choice.