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    Michigan Commercial Auto Insurance

    Michigan Commercial Auto Insurance

    Many of Michigan's 886,000 small businesses need commercial auto insurance. However, personal auto insurance doesn't cover most commercial vehicles because of their higher risk than personal automobiles.

    When one of the vehicles owned by your company is involved in an accident, Michigan commercial auto insurance covers a range of costs. Furthermore, it protects you if your vehicle is stolen or vandalized or if it is damaged by hail or a fallen tree.

    Michigan businesses are encouraged to get the right insurance coverage that prioritizes commercial auto insurance that also offers competitive rates. This would allow you to get sufficient coverage at a relatively lower cost than other insurance and financial services options.

    Learn more about commercial vehicle insurance, covered perils, and medical payments when acquiring commercial auto insurance for your business by reading on.

    Requirements For Michigan Commercial Auto Insurance 

    Commercial insurance policies in Michigan must have a minimum residual liability limit of $50,000 per person, $100,000 per accident, and $25,000 for property damage (i.e., 50/100/25). Depending on the types of cars specified on your policy or the underwriting standards of your insurer, you might need to carry larger amounts.

    What Does Michigan Commercial Auto Insurance Cover?

    All car owners are required by Michigan law to acquire mandatory no-fault insurance, which consists of three main coverages:

    • Personal Injury Protection (PIP) - This includes all essential medical costs and a share of lost wages for the occupants of your cars, including the drivers and passengers.
    • Property Protection Insurance (PPI) - Unlike your personal auto policy insurance, this covers damage to other people's buildings, fences, and legally parked cars that your car causes in Michigan.
    • Residual Liability Insurance (RLP) - In certain situations where Michigan's no-fault legislation does not apply, residual liability insurance (RBI/PD) pays for physical harm and property damage you inflict on others.

    Other Insurance Types

    Michigan surety bond insurance isn't the only type of insurance you can get. It's also important to explore other options to discover policies that cover all your bases:

    Quick Statistics On Commercial Auto Insurance

    Legal fees and other costs are covered by commercial auto insurance if a company vehicle is involved in an accident. In Michigan, it is necessary for all commercial vehicles. 

    However, people in Michigan continue to suffer work-related injuries while not having adequate insurance from their employers. Here are recent figures on vehicle accidents and commercial auto insurance in Michigan.

    Statistics On Michigan Commercial Auto Insurance

    • 25.5% of commercial drivers don't have commercial auto insurance or personal injury protection from an insurance company.
    • With a projected yearly premium of $2,610, nearly double the national average, Michigan has the most costly vehicle insurance in the nation.
    • In reality, Michigan has fewer annual claims for property damage than the rest of the country (369 per 100,000 vehicles) (385 per 100,000 vehicles).
    • A survey from the University of Michigan reports that 30% of auto insurance premiums go toward injury payments.

    Statistics On Commercial Vehicular Accidents In Michigan

    • In 2019, there were 314,377 traffic accidents in Michigan, according to the Michigan State Police's Traffic Crash Reporting Unit.
    • Additionally, these figures are greater than in 2018, when there were 974 fatalities and 5,586 serious injuries.
    • Wayne County ranked first in several categories, including motorcycle accidents (485), accidents involving alcohol (1,484), and truck/bus accidents, in the 2019 Michigan vehicle collision data (3,338).
    • Following Macomb (23,929) and Kent (23,091) counties, Oakland County (40,394) had the second-highest overall number of auto accidents.
    • Surprisingly, only 33% of people killed in auto accidents in Michigan last year were buckled up.

    Frequently Asked Questions About Commercial Auto Insurance In Michigan

    Below are some of the frequently asked questions regarding commercial auto insurance:

    1. How many limits does a commercial auto insurance policy have?

    You can choose between combined single and split limits for your liability policy's payment limits. Maximum Bodily Injury Payment per Person; Split Limits specify the maximum amount your insurance provider will pay for each of these three items.

    2. Do insurance companies pursue drivers who lack auto insurance to get one?

    Your insurer will pursue the driver in case of an uninsured or underinsured driver to recover the costs incurred. Although doing so can be difficult and expensive, it is important to know the possibility.

    3. How long before you face the consequences of driving without vehicle insurance?

    The officer delivering your ticket will specify a time frame for you, which may range from a few days to a few weeks. You could receive fines and costs for failing to show evidence of insurance if you're discovered driving without insurance.

    Commercial auto insurance remains in demand among small and large businesses. But never settle for the first quote that you receive. In addition to the bond amount and primary and interest rates, you want to make sure you get comprehensive coverage that secures your business's future. 

    Review your options so you can secure smart long-term business solutions. Read our Assured Standard blogs for information about surety bonds and bond insurance policies.

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    Assured Standard will protect your business with the right insurance, depending on your needs. Now more than ever, it’s crucial to have the right general liability insurance experts on your side. Protecting the future of your business starts today.
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