From delivery trucks to takeout delivery cars, there are a number of commercial vehicles on the streets of Grayling at any given time, and accidents are not uncommon. If you are among the many local business owners who use company vehicles, you will want to be sure to protect your company’s finances by having the right commercial auto insurance policy in place.
An independent insurance agent can help you find an affordable policy that is compliant with all state and federal laws. An agent in or near Grayling can obtain quotes from multiple insurance companies, so you can be sure to find the customized commercial vehicle coverage that properly protects your unique business.
What Is Commercial Auto Insurance?
Commercial auto insurance is designed to protect your business from losses caused by liability lawsuits, expensive vehicle repairs, and loss of income after an accident involving one of your commercial vehicles. 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 car insurance company may deny the claim.
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.
Crawford County, MI CMV Crash Statistics
- Total number of crashes involving CMVs: 12
- Total number of fatal crashes involving CMVs: 0
- Total number of injury crashes involving CMVs: 3
- Total number of property damage only crashes involving CMVs: 9
How Much Does Commercial Auto Insurance Cost in Michigan?
Commercial auto insurance costs can vary considerably from one company to the next. This is because insurance companies assess risk and calculate rates according to a number of different factors that are unique to your business. Your rates for Michigan commercial auto coverage can be influenced by such factors as:
- The number of vehicles your business needs to insure
- The types of vehicles you are insuring as well as each vehicle’s year, make, model and safety features
- What you will be using the vehicles to transport (e.g., food, hazardous materials, people, etc.)
- The estimated number of miles your vehicles will be driven each year
- The driving records of any employees who may be operating the vehicles
- Information about the employees who will be driving the vehicles
- The amount of coverage you are purchasing
Because each insurance company has its own proprietary formula for calculating costs, you can save a lot of money by shopping around for the most competitive price. And comparison shopping is easy when you work with an independent insurance agent who isn’t tied to one carrier.
How Much Commercial Auto 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. 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 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 must comply with additional state and federal regulations. The amount of liability insurance required for trucks depends on the truck’s weight, where the truck travels (only in Michigan or out-of-state), and what the truck is transporting (people, household goods, hazardous materials, etc.).
What Does Commercial Auto Insurance Cover?
Michigan commercial auto insurance policies include coverage that meets the state minimum requirements. Most businesses choose to purchase coverage that exceeds those minimum requirements, as well as certain other optional coverage types, such as:
- 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.
You might also consider purchasing a commercial umbrella policy, which provides liability coverage beyond the limits of your commercial auto insurance policy. This coverage is essential if you are involved in a large lawsuit where the damage claims exceed the limits of your commercial auto insurance. Your local independent insurance agent can help you determine which of the many available coverage options may be beneficial to your Grayling business.
Why Work with an Independent Insurance Agent?
Finding an ideal commercial auto insurance policy does not have to be difficult or time-consuming. Local independent insurance agents are available to answer your questions, offer trustworthy advice, and provide you with a selection of customized quotes from reputable providers.
Contact an insurance agent near you to start your search for the best commercial auto insurance policy for your Grayling business.
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