Michigan Commercial Auto Insurance

Businesses that own or use vehicles need this coverage. 

This includes delivery services, construction companies, landscapers, taxi or limo services, food trucks, and any company with employees who drive for work.

Even if you only use a personal vehicle occasionally for business purposes, you may need commercial coverage and your personal auto insurance policy may be of no avail here. 

The key is how the vehicle is used – if it’s integral to your business operations, commercial auto insurance is likely necessary.

 It’s not just about the type of vehicle, but how it’s used in your business operations. 

From sole proprietors using a single vehicle to large corporations with extensive fleets, commercial auto insurance is a crucial component of business protection in Michigan.

What if your employees use personal vehicles for work?

If your employees use their own cars for work tasks, you need non-owned auto coverage. 

This protects your business if an employee has an accident while on the job.

Without this coverage, your business could be held liable for accidents that occur during work-related trips in personal vehicles.

This type of insurance fills a crucial gap, ensuring your business is protected even when employees use their own cars for work purposes.

It’s an often-overlooked aspect of business insurance that can save your company from significant financial and legal troubles down the road.

How does Michigan’s no-fault system affect commercial auto insurance?

Michigan’s no-fault system applies to commercial vehicles too. It requires Personal Injury Protection (PIP) coverage.

This pays for medical expenses regardless of who caused the accident. Under this system, each party’s insurance covers their own medical costs and lost wages, regardless of fault.

For businesses, this means your insurance will cover your driver’s injuries, even if they caused the accident. While this can lead to higher premiums, it also provides a level of certainty and helps avoid lengthy legal battles over fault.

Understanding this system is crucial for Michigan businesses to make informed decisions about their commercial auto insurance coverage.

Factors influencing commercial auto insurance costs in Michigan

Several factors affect your premium. The type and number of vehicles in your fleet play a significant role – larger, more expensive vehicles used by the business typically cost more.

The driving records of your employees are crucial; a history of accidents or traffic violations can increase your rates.

Your business location matters too, with urban areas often seeing higher premiums due to increased accident risks.

Annual mileage is another factor; the more your vehicles are on the road, the higher the risk of an accident. Finally, the liability limits you choose will impact your costs – higher limits provide more protection but come with higher premiums. Understanding these factors can help you make informed decisions about your coverage and potentially find ways to reduce your insurance costs.

Tips To Lower Commercial Auto Insurance Costs

Michigan businesses can take several steps to reduce their commercial auto insurance costs.

Implementing a safe driving program is an effective way to lower premiums over time. 

By training your employees in safe driving practices and maintaining a clean driving record, you can demonstrate to insurers that your business is a lower risk. 

Choosing appropriate deductibles is another strategy; opting for higher deductibles can lower your premiums, but make sure you can afford the out-of-pocket expense if you need to make a claim.

Bundling your commercial auto policy with other business insurance policies can often lead to significant discounts.

Regular reviews and updates of your coverage ensure you’re not paying for unnecessary coverage as your business needs change. 

By working closely with The Allen Thomas Group, you can explore these and other cost-saving strategies tailored to your specific business needs.

If you operate in multiple states, we can provide interstate coverage. This ensures you’re protected wherever your business takes you.

Interstate coverage is crucial for businesses that transport goods or provide services across state lines. Each state has its own insurance requirements, and our interstate coverage ensures you’re compliant with the regulations of every state you operate in.

This comprehensive coverage allows you to expand your business operations without worrying about gaps in your insurance protection. 

Our team at The Allen Thomas Group has expertise in multi-state regulations and can guide you through the complexities of interstate commercial auto insurance.