From pizza delivery cars and mobile pet-grooming vans on local roads to semi-trucks traveling on the Interstate, it’s hard to avoid commercial vehicles on the streets of Sterling Heights. If you are a local business owner who operates even one commercial vehicle, you need commercial auto insurance to protect your business assets when accidents happen. An independent insurance agent can help you find competitively priced coverage that is compliant with all state and federal laws and affordable for your business. Find an agent in or near Sterling Heights to learn more about your coverage options and make an informed choice.
Why Do Sterling Heights Businesses Need Commercial Auto Insurance?
Commercial vehicles are assumed to face greater risks than most personal vehicles. They are out on the road more, and for that reason alone have a greater risk of being involved in a crash. If your commercial vehicle is involved in an accident that results in serious injuries or fatalities, you can be faced with a very expensive lawsuit. And even minor fender benders can result in property damage costs and loss of income for your business. Any business that owns vehicles needs commercial auto insurance to protect itself from the large financial losses that can result after a car accident.
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.
Macomb County, MI CMV Crash Statistics over the last Year
- Total number of crashes involving CMVs: 1,108
- Total number of fatal crashes involving CMVs: 1
- Total number of injury crashes involving CMVs: 211
- Total number of property damage only crashes involving CMVs: 896
How Much Does Commercial Auto Insurance Cost in Sterling Heights, MI?
Commercial vehicle insurance costs can vary significantly from one business to the next. Insurance companies assess risk and calculate rates according to a variety of factors that are unique to your business, including:
- The number of vehicles your business is insuring
- Each vehicle’s type, year, make, model, and safety features
- Each vehicle’s passenger capacity if used for transporting people
- Whether your vehicles will be used to transport hazardous materials
- The estimated number of miles your vehicles will be driven annually
- The driving histories of the employees who will be operating the vehicles
- The amount of coverage you wish to purchase
Because each insurance company has its own method for determining costs, it pays to compare rates before purchasing a policy. That way you can be sure you are getting the coverage you want at a competitive price.
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. Drivers have a limited ability to sue an at-fault driver for damages unless an accident involves serious injuries or fatalities. All Michigan drivers must 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, including:
- The truck’s weight
- Whether the truck is involved in interstate commerce
- Whether the truck is transporting people, household goods, hazardous materials, etc.
What Does Commercial Auto Insurance Cover?
All commercial vehicle insurance policies in Sterling Heights will include the state-mandated coverage. In addition, insurance companies offer several other types of coverage that may be included as standard in their policies or offered as optional coverage.
- 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 damage to your vehicle 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.
Your local independent insurance agent can help you determine which coverage types may be beneficial for your unique needs.
Why Work with an Independent Insurance Agent?
Shopping for the right commercial vehicle insurance coverage does not have to be difficult or time-consuming. A local independent insurance agent can answer your insurance-related questions, offer trustworthy advice, and obtain customized quotes from multiple insurance companies.
Contact an agent near you to begin your search for the best commercial vehicle insurance policy for your Sterling Heights business.
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