Michigan Business Insurance: FAQs about Commercial Auto Insurance


Personal auto insurance is not without limitations, and those who own a commercial fleet of vehicles know this only too well. When the time comes to file a claim, you may soon discover that your personal auto insurance won’t likely cover any damage to your car if you have been using it to carry out business-related activities. For this reason, you will likely need to furnish a commercial auto insurance policy from a Michigan business insurance provider if you or your employees use vehicles for work-related tasks.

Who Needs Commercial Auto Insurance

Personal vs. Commercial Auto Insurance: What’s the difference?

Personal drivers have different car insurance concerns than businesses. For one thing, businesses face bigger liability issues, a fact that requires them to have higher liability insurance recommendations and obligations. Commercial auto insurance is typically required of a business to provide coverage for employees, passengers, work gear, and other assets in the event of a lawsuit.

What type of businesses need commercial auto insurance?

Most people would imagine that commercial auto insurance is only for large vehicles and trucks, but in reality, they also include regular-sized vehicles that are being used for business. Simply put, as long as you use a vehicle for work (excluding commuting to and from your work location), it’s likely that you’ll need the coverage provided by a commercial auto insurance policy.

When will you need commercial auto insurance?

You will need commercial auto insurance if: you provide transportation services, whether for people or for goods, for a fee; you lease or rent your vehicle out to others, or else use it as a limo or a taxi; your nature of work requires you to have higher liability limits than usual; your employees use your vehicle regularly; you need to transport heavy tools and equipment; or your vehicle is owned or leased by a business, partnership, or corporation.

How much coverage will you need?

As for your minimum coverage amount, you must first meet the state of Michigan’s specific liability insurance requirements, and then pay for any additional needs based on the nature of your business. If you need help computing how much commercial auto insurance will cost for you, an auto insurance specialist from a Michigan business insurance company like Allied Insurance Managers, Inc. can inform you of your exact coverage requirements according to your vehicle and business use.

(Source: Who Needs Commercial Auto Insurance, DMV.org)

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Allied Insurance Managers's Bio

Headquartered in Rochester Hills, Mich., Allied Insurance Managers is one of the largest, privately-owned, independent insurance agencies in Michigan.