FRIDAY, DECEMBER 23, 2022
Commercial auto insurance is crucial to your company’s business insurance plan. The policies that help provide financial protection for your company’s vehicles and liabilities are highly customizable. Your agent can help determine the most appropriate coverages, given your risks and exposures.
Who Needs Commercial Auto Insurance?
Michigan companies that use vehicles to conduct business must have appropriate insurance according to state laws. Depending on the type of vehicles your business uses and whether you haul cargo, you may also need additional coverage to satisfy federal regulations.
If your business finances or leases vehicles, the lienholder requires full coverage insurance that may include comprehensive, collision and gap coverage.
Who Is Insured Under a Commercial Auto Policy?
Your business auto coverage form details who is insured under your company’s commercial auto policy. Insured drivers may include the following:
- You as the named insured or the person listed in the policy’s declarations
- Permissive users or anyone driving a covered vehicle with your permission
- Omnibus insureds or anyone who operates a covered vehicle with the policyholder’s implied or express consent
When Do You Need Commercial Auto Insurance?
Michigan companies need commercial auto insurance if they use vehicles to conduct business; this includes privately owned vehicles. Depending on the situation, your company may have several options, including:
- Commercial auto insurance liability coverage to help pay for third-party bodily injury and property damage after an accident. Your policy must meet Michigan’s minimum coverage requirements.
- Commercial auto insurance collision and comprehensive coverage to help pay to repair or replace your company’s vehicle after a covered incident or accident. Your lienholder may require these coverages.
- Gap coverage helps pay the difference between an insurer’s settlement and the total amount your company owes to a lienholder after a covered accident renders the vehicle a total loss. Your lienholder may require this coverage.
- Hired and non-owned auto insurance (HNOA) to help provide coverage for privately owned, leased or rented vehicles your company uses for business purposes.
Depending on your company’s risks and exposures, your agent may recommend that you further customize your coverage by adding the following:
- Personal injury protection (PIP) to help cover medical expenses, loss of income, funeral expenses and loss of essential services after a covered accident
- Medical payments (MedPay) to help cover deductibles or copays of other coverage, including PIP and health insurance
- Rental reimbursement to help cover the costs of renting a vehicle to allow for repairs after a damage-causing accident
- Uninsured and underinsured motorist coverage to help pay for the other driver’s legal liability if you sustain injuries are property damage in an accident
How Much Is Commercial Auto Insurance?
Your company’s commercial auto insurance premiums depend on numerous factors, including:
- Your claims history
- Your location
- Your industry
- The size of your company
- The type of vehicles your company uses
- The value of your company vehicles
- Your deductibles
- Your coverage limits
- The types of coverage you purchase
Insurers set commercial auto insurance premiums according to proprietary algorithms. Your agent can help you choose an insurer with a reputation for timely claims handling and excellent customer service.
Contact Metro One Insurance Agency in Troy, Michigan, to get personalized quotes for commercial auto insurance to meet your organization’s needs.
This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.
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