From FedEx and UPS trucks transporting packages to large construction vehicles, delivery cars, and snowplows, there are many commercial vehicles on Flint’s roadways. If you are a business owner in this city, you will want to be sure that your company-owned vehicles are covered by the right insurance coverage. An independent insurance agent in Flint can help you find a competitively priced commercial vehicle insurance policy. Your agent can get quotes from multiple insurance companies, answer your questions, and help you make an informed choice.
Why Is Commercial Auto Insurance Necessary?
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-owned car or truck is involved in an accident. That’s why any business that owns vehicles needs commercial auto insurance. It covers many of the large financial losses that can result after crashes involving their vehicle fleet.
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.
Genesee County, MI CMV Crash Statistics
- Total number of crashes involving CMVs: 399
- Total number of fatal crashes involving CMVs: 5
- Total number of injury crashes involving CMVs: 107
- Total number of property damage only crashes involving CMVs: 287
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 Flint, MI?
Commercial vehicle insurance costs will vary from one company to the next. This is because rates are calculated according to several factors such as:
- How many vehicles you need to insure
- The types of vehicles you are insuring (e.g., cars, vans, trucks, etc.)
- The vehicle’s passenger capacity if it will be used for transporting people
- Whether the vehicles will be used to transport hazardous materials
- Whether the vehicles will be used locally or for interstate commerce
- Information about the employees who will be operating the vehicles
- The amount of coverage you are purchasing
Taking steps to increase driver safety can reduce the risk of accidents, and can help you control the costs of your commercial auto insurance. Limiting the amount of time your drivers spend on the road, making sure your vehicles are well-maintained, and providing your drivers with routine safety training and educational materials goes a long way toward promoting safety and saving money.
How Much Commercial Vehicle Insurance Does My Business Need?
Commercial vehicles vary by industry. They can range from smaller vehicles such as delivery cars and vans to construction vehicles like dump trucks and front-loaders. They can also include 18-wheel semis or large passenger vehicles like buses. If your business owns trucks over 10,000 pounds, you must comply with all state and federal liability insurance requirements. The amount of liability insurance you’ll be required to purchase depends on the weight of the trucks, where they are traveling, and what they are transporting.
In addition to the requirements placed on heavy trucks, all Michigan drivers need to have a minimum amount of insurance in order to comply with state law. Because Michigan is a no-fault state, your insurance will pay your own injury claims up to a specified limit, regardless of who is at fault for the accident. All auto insurance policies in Michigan 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.
What Does Commercial Auto Insurance Cover?
In addition to the personal injury protection and liability coverage that is required by law, commercial vehicle insurance offers several policy options that can help you further protect your business finances. Here are some coverage options you may want to consider including in your commercial auto insurance policy:
- 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 motorist coverage: Provides coverage for damage and medical expenses if your employee is involved in an accident caused by an uninsured 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.
Your local independent insurance agent can help you determine which of these optional coverage types are a good fit for your Flint business.
Why Work with An Independent Insurance Agent?
Commercial vehicle insurance covers everything from small cars to large buses, so you will want to be sure that you have a policy that is designed to meet the specific needs of your unique business and vehicles. A local independent insurance agent can offer advice and guidance when you are shopping for coverage for your company vehicles.
Contact an insurance agent in or near Flint to start comparing quotes from multiple, highly rated insurance companies.
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