From delivery trucks to pizza delivery cars, limos, and construction vehicles, there is a wide variety of commercial vehicles on the roads of Adrian, and accidents can happen at any time. If you own a business in Adrian and have one or more vehicles that you use for business purposes, it’s essential that you cover your company-owned vehicles with the right insurance coverage. An independent insurance agent in Adrian, MI can help you find a commercial vehicle insurance policy that is affordable and ensures that you are compliant with state and federal laws.
Why Is Commercial Vehicle Insurance So Important?
Auto insurance companies assume that commercial vehicles face greater risks than most personal vehicles. Liability lawsuits, property damage, and loss of income are not uncommon when a business car or truck is involved in an accident. Any business that owns vehicles needs commercial auto insurance to protect itself from the large financial losses that can result after accidents involving their business-owned vehicles.
If you don’t have any business-owned vehicles, but you or your employees occasionally use personal vehicles for business use, you are likely to need commercial auto insurance. If you try to file a claim with your personal auto insurance policy for an accident that occurred while using your vehicle for business purposes, your car insurance company may deny the claim.
How dangerous is driving a commercial vehicle? The state of Michigan tracks the number of accidents involving commercial motor vehicles (CMVs). While not all business-owned vehicles are categorized as such, CMVs are defined as any vehicle used in interstate commerce to transport passengers or property with a weight rating of 10,001 pounds or more. This definition applies to many types of vehicles, including small package delivery vehicles, pickups with trailers attached, box trucks, straight trucks, and more.
Lenawee County, MI CMV Crash Statistics
- Total number of crashes involving CMVs: 107
- Total number of fatal crashes involving CMVs: 4
- Total number of injury crashes involving CMVs: 27
- Total number of property damage only crashes involving CMVs: 76
While lawsuits are limited in Michigan due to the state’s no-fault law, if one of your drivers causes an accident that results in significant injuries or a fatality, your business is likely to face a very expensive liability lawsuit. You need a sufficient amount of commercial auto liability coverage in order to protect your finances in these situations.
How Much Does Commercial Auto Insurance Cost in Adrian, MI?
Commercial auto insurance costs can vary greatly from one company to the next. This is because rates are calculated according to a number of factors such as:
- How many vehicles you are insuring.
- The type(s) of vehicles you are insuring (e.g., car, cargo van, bus, semi-truck, dump truck, etc.).
- The vehicles’ passenger capacity if they are to be used to transport people.
- The types of materials the vehicles will be transporting.
- Whether the vehicles will be used locally or for interstate commerce.
- The driving histories of the employees who will be operating the vehicles.
- The amount of insurance and the coverage options you are purchasing.
Because taking steps to increase driver safety can reduce the risk of accidents, many commercial vehicle insurance providers offer discounts to policyholders who provide their drivers with routine safety training and educational materials.
How Much Commercial Vehicle Insurance Does My Business Need?
Michigan is a no-fault state. That means your insurance will pay your own injury claims up to a specified limit, regardless of who is at fault for the accident. All Michigan drivers, both personal and commercial, need to 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 repair 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 to comply with, including additional auto liability insurance requirements. The amount of liability insurance required for trucks depends on several factors:
- What is the truck’s weight classification?
- Is the truck involved in interstate commerce or will it stay within the state of Michigan?
- Is the truck transporting people, household goods, hazardous materials, etc.?
What Does Commercial Auto Insurance Cover?
In addition to the personal injury protection and the liability coverage that are required by law, your commercial vehicle insurance policy can also include any of several other optional coverage types. Some coverage options you may want to consider adding to your commercial auto insurance policy include:
- Collision insurance: Covers the cost to repair your own vehicle after a collision.
- Comprehensive insurance: Covers the cost to repair or replace your vehicle if it is lost or damaged due to non-collision hazards such as falling objects, floods, fire, or theft.
- Uninsured/underinsured motorist coverage: Provides coverage for damage and medical expenses if your employee is involved in an accident caused by an uninsured or underinsured driver.
- Towing and roadside assistance: Covers the cost of assistance if your company vehicle becomes disabled while 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.
A local independent insurance agent can help you determine which of these optional coverage types are right for your Adrian business.
Why Work with an Independent Insurance Agent?
Commercial vehicle insurance can cover everything from small cars to large buses, so businesses have varying coverage requirements and needs. As an Adrian business owner, seeking the advice of a local independent insurance agent is the best way to get your questions answered and find affordable coverage.
Find an insurance agent in or near Adrian to compare a selection of customized commercial vehicle insurance quotes.
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