From limousines to taxis, snowplows, and heavy construction trucks, it is easy to find commercial vehicles on Hancock’s roadways. If your Hancock business uses vehicles as a part of your company’s day-to-day operations, you will want to be sure that those vehicles are properly insured. A local independent insurance agent can help you find competitively priced commercial vehicle insurance that is compliant with state and federal laws.
Why Is Commercial Vehicle Insurance So Important?
Commercial vehicles face greater risks than most personal vehicles. If your commercial vehicle is involved in an accident that results in serious injuries or fatalities, you can be faced with a lawsuit. What’s more, property damage and loss of income often result when a business-owned car or truck is involved in an accident. That’s why Hancock businesses that own vehicles need commercial vehicle insurance. It helps you pay for losses after one of your vehicles is involved in a crash. And you even need coverage if you or your employees occasionally drive personal vehicles for business purposes.
Many personal insurance policies will deny a claim if an accident happened while the personal vehicle was being driven for business. 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.
Houghton County, MI CMV Crash Statistics
- Total number of crashes involving CMVs: 28
- Total number of fatal crashes involving CMVs: 0
- Total number of injury crashes involving CMVs: 2
- Total number of property damage only crashes involving CMVs: 26
How Much Does Commercial Vehicle Insurance Cost in Hancock, MI?
Commercial vehicle 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:
- The number of vehicles your business needs to insure
- The types of vehicles you are insuring (e.g., car, truck, van, etc.)
- The year, make, model, and safety features of each vehicle on your policy
- Each vehicle’s passenger capacity if it will be used to transport 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 driving the vehicles
- The amount of coverage you wish to include in your policy
Often, commercial vehicle insurance companies will offer policy discounts to policyholders who provide routine safety training and materials to their drivers and manage a fleet of well-maintained vehicles.
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. Michigan drivers have a limited ability to sue an at-fault driver unless an accident results in serious injuries or fatalities. 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, including additional liability insurance requirements. The amount of liability insurance required for trucks depends on several factors:
- The truck’s weight
- Whether the truck is involved in interstate commerce or will stay within the state of Michigan
- Whether the truck is transporting people, household goods, hazardous materials, etc.
What Does Commercial Vehicle Insurance Cover?
All commercial vehicles in Hancock will include personal injury protection and the other coverages required by law. Insurance companies also offer several types of optional coverage. You can choose the options that are most necessary for your needs.
- Collision coverage: Covers damage to your vehicle sustained in a collision, regardless of who was at fault.
- Comprehensive coverage: Covers the cost to repair damage to your vehicle due to non-collision events such as fires and property crimes.
- Uninsured motorist coverage: Covers your employee’s medical expenses and your vehicle’s damage following an accident caused by an uninsured or underinsured driver.
- Towing and roadside assistance: Covers the cost of a service call if your company vehicle becomes disabled while it is 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 can also consider purchasing commercial umbrella insurance, which adds liability coverage that is beyond the limits of your commercial vehicle policy. A local independent insurance agent can help you decide which of these coverage options will benefit your Hancock business.
Why Work with an Independent Insurance Agent?
Your commercial vehicle insurance should meet the unique needs of your business. A local independent insurance agent can answer your insurance-related questions and offer advice and guidance when you are building a suitable policy and shopping around for the best rates.
Contact an independent insurance agent in Hancock to start comparing quotes from multiple insurance companies.
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