From delivery trucks to pizza delivery cars, limos, and construction vehicles, a wide variety of commercial vehicles are on the roads of Grand Rapids, and accidents can happen at any time. If you own a business in Grand Rapids 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 Grand Rapids can help you find a commercial vehicle insurance policy that is both affordable and compliant with state and federal laws.
Why Is Commercial Vehicle Insurance So Important?
Insurance companies assume that, in general, commercial vehicles face greater risks than most personal vehicles. Liability lawsuits, property damage, and loss of income often result when a business car or truck is involved in an accident. Even minor fender benders can be costly. The cost of repairing damage to vehicles and loss of productivity if a vehicle is out of service for a while or needs to be replaced can easily set you back financially.
That’s why any business that owns vehicles needs commercial auto insurance to protect itself from the financial losses that can result after an accident. If you don’t have any business-owned vehicles, but you or your employees occasionally use personal vehicles for business use, you also 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 claim may be denied.
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.
Kent County, MI CMV Crash Statistics
- Total number of crashes involving CMVs: 991
- Total number of fatal crashes involving CMVs: 9
- Total number of injury crashes involving CMVs: 169
- Total number of property damage only crashes involving CMVs: 813
How Much Does Commercial Auto Insurance Cost in Grand Rapids, 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 types of vehicles you are insuring (e.g., cars, cargo vans, buses, semi-trucks, dump trucks, etc.)
- The vehicle’s passenger capacity if it will 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, which means that your insurance will pay your own injury claims up to a specified limit, regardless of who is at fault for the accident. A driver's ability to sue an at-fault driver is limited unless an accident involves serious injuries or fatalities. All Michigan drivers need to have a minimum amount of insurance in order to comply with state law. This includes:
- 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.
Trucks over 10,000 pounds have additional state and federal regulations that they must comply with, including additional liability insurance requirements. The amount of liability insurance required for heavy trucks depends on the weight of the truck, where the truck travels (in-state only or out-of-state), and the types of items being transported (people, household goods, hazardous materials, etc.). An independent insurance agent in Grand Rapids can help you determine what is required for your commercial vehicles and can help you find the appropriate policies to cover you.
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 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.
A local independent insurance agent can help you determine which of these optional coverage types are right for your Grand Rapids business.
Why Work with an Independent Insurance Agent?
Commercial vehicle insurance can cover everything from small cars to large buses, so Grand Rapids businesses have varying coverage requirements and needs. 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 Grand Rapids to compare a selection of quotes that are customized for your unique coverage needs.
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