Commercial auto insurance in Michigan

The Michigan Department of Transportation mandates that any Michigan company that uses vehicles for business purposes must insure them appropriately.

Commercial auto insurance covers vehicles owned by your business. If your business-owned vehicle was involved in an accident, it would help pay for medical bills, legal fees, and other related expenses.

Any vehicles you own solely for work purposes must be covered by a commercial auto insurance policy, whether you own a landscaping pickup, a food truck, or a fleet of tow trucks.

A business auto policy is more extensive than a standard commercial auto insurance policy. It covers all vehicles used by a business, whether they’re owned by the company, leased, or owned by employees.

If you’re using your own vehicle for work-specific activities, your personal auto policy wouldn’t cover you in the case of an accident. That’s why many small business owners purchase hired and non-owned auto insurance (HNOA). This liability policy covers accidents in personal, leased, and rented vehicles used for work purposes.

If you or an employee gets into an accident while driving a personal car for a work errand, your HNOA coverage would help pay for any claims or lawsuits against your business. It’s worth noting that this would not cover damage to the vehicle used by your business.

Because commercial auto liability insurance is a statutory Michigan requirement, your business could be in legal and financial jeopardy without the proper coverage.

If one of your business vehicles is at fault in an accident, you could face an expensive lawsuit or settlement. You’d likely have to pay for physical damage to the other vehicle or property, medical costs, lost wages, pain and suffering, plus other related costs.

Additionally, you could face severe penalties for not carrying commercial auto insurance. Driving without auto insurance coverage could be charged as a misdemeanor, with a fine of up to $500 and a jail sentence of up to one year. The court may also order the offender's license suspended for 30 days or until they are able to provide proof of auto insurance.

All vehicles in the state of Michigan are required to have a minimum amount of auto liability insurance coverage, whether they’re for personal or business use.

Michigan also requires both bodily injury coverage and personal injury protection (PIP). An add-on coverage for a standard commercial auto policy, PIP insurance helps provide medical payments coverage after a car accident, regardless of who was at fault.

Overall, Michigan's insurance requirements are:

• $50,000 bodily injury liability per person
• $100,000 bodily injury liability per accident
• $10,000 for property damage in another state
• $250,000 personal injury protection (or less for individuals enrolled in Medicare or Medicaid)

Your insurance agency might recommend higher liability coverage limits based on the types of vehicles you own and how they’re used.

Semi-trucks, utility and cargo trailers, and other vehicles with a Michigan Department of Transportation serial number will have additional liability coverage requirements, depending on the type of vehicle and how it’s used.

You can see if your business needs these additional requirements by checking your USDOT number or docket number with the Federal Motor Carrier Safety Administration.

Insureon makes it easy for Michigan business owners to get affordable commercial auto insurance. Our Michigan-licensed insurance agents can help you pick the best auto, general liability, and workers' compensation policies for your business needs.

Complete one easy application to review quotes specific to your business and industry from leading U.S. insurance companies. Start an application for a commercial auto insurance quote today.