There are more than 886,000 small businesses in Michigan, employing more than 1.9 million workers. These small businesses must have commercial auto insurance if they use a vehicle for business purposes. Commercial auto insurance is legally required in the state of Michigan.
If you are looking for commercial auto insurance in Michigan, this article shares with you the best providers that we recommend and everything else you need to know to buy a commercial auto insurance policy at affordable rates in Michigan.
- 6 best commercial auto insurance companies in Michigan
- Commercial auto insurance requirements in Michigan
- What does commercial auto insurance cover?
- Who needs commercial auto insurance in Michigan?
- How much does commercial auto insurance cost in Michigan?
- How to get cheap commercial auto insurance in Michigan
- Get commercial auto insurance quotes online in Michigan
5 best commercial auto insurance companies in Michigan
The best way to save money on commercial auto insurance is to get quotes from at least three companies. Different companies place more emphasis on different things, like location or industry, and some may offer more discounts. Below are the 5 best commercial auto insurance companies that we recommend in Michigan.
- Progressive: Best Overall
- Simply Business: Best for finding cheap coverage by comparing several quotes easily
- The Hartford: Best for comprehensive coverage for businesses with a fleet of commercial vehicles
- Tivly: Best for working with experienced agents
- Smart Financial: Best for finding cheap required minimum coverage
Progressive: Best Overall
Progressive is the biggest carrier insuring commercial auto in the United States. They are known for comprehensive coverage, several discount programs, and very easy and fast online quoting experience. You can easily get quotes and buy a policy online in less than 10 minutes.
Most importantly, Progressive commercial auto coverage is available to almost all types of commercial vehicles and businesses in all industries.
- The biggest commercial auto insurer with decades of experience in insuring commercial vehicles
- Easy to get online quotes, within 10 minutes. You can also buy a policy and manage a policy completely online
- Multiple discounts available to almost all customers
- Rideshare insurance is available
- Covers a wide range of commercial vehicles and available for businesses in all industries
- Some online reviews are less than stellar
- Rates can be a bit more expensive but if you prefer comprehensive coverage without many gotchas, it may be worth it
Simply Business: Best for finding cheap coverage by comparing several quotes easily
Simply Business is an insurance brokerage firm specializing in servicing small businesses. As a brokerage firm, Simply Business partners with 30+ reputable carriers. They can help you get quotes from these carriers at once, making it easier for you to compare several quotes to find the cheapest one for your business.
- Digital broker that can compare several quotes from partner companies
- Partners with 30+ reputable carriers with excellent financial strengths and affordable rates
- Good customer satisfaction ratings
- Good for working with agents
- They don’t underwrite any insurance, so you can’t file claims through Simply Business
- Only offers quotes from companies they partner with
The Hartford: Best for comprehensive coverage for businesses with a fleet of commercial vehicles
The Hartford is one of the most reputable carriers in the US with more than 200 years of experience and have been insuring more than 1 million businesses. Working with the Hartford, you can rest assured that you are working with one of the most ethical firms in the world and that they will pay your claims when you need them to. Given their size, the Hartford is a good option for bigger companies who need to insure a fleet of commercial vehicles.
- Many years of experience (one of the oldest insurance companies around)
- Very comprehensive and customizable coverage
- Have sufficient resources to work with and support larger businesses with a fleet of commercial vehicles
- Can’t buy a policy online: must work with an agent
- Very limited digital capabilities
- Their rates can be high compared to other options
Tivly: Best for working with experienced agents
Tivly is another brokerage firm focused 100% on serving small businesses. They believe that small businesses need to have proper guidance from experienced agents to buy the right coverages for their small businesses at the most affordable rates. They also believe small business insurance is more complicated than it appears and often has exclusions and other terms that need an experienced agent to make it clear for small business owners to be fully aware before purchasing a policy.
- Extensive network of agents with experience in many industries
- Agents can help you figure out what types of insurance you need
- Agents can help you get and compare several quotes to find the best policy with the right coverage and affordable rates for your business
- No tools for managing your policy online
- No mobile app
- You have to work with an agent
Smart Financial: Best for finding cheap required minimum coverage
Smart Financial is another brokerage firm specializing in helping small businesses to acquire the right coverage at the most affordable rates. Smart Financial understands that commercial auto insurance is a significant expense for small businesses and getting cheap coverage is important to them. They focus on ensuring small businesses get the minimum coverage satisfying the state and federal laws requirements at the cheapest possible rates from solid standing carriers.
- Simply and quick process
- Partners with 30+ carriers who can offer cheap rates for minimum coverage that the state laws and federal regulations require and who have excellent financial strength ratings from 3rd-party agency such as AM Best
- Compare quotes from many insurance companies
- Some carriers they work with may not be well-known but they have excellent financial strength ratings and able to provide low-cost coverage
- If you prefer working some particular carrier that they don’t work with, you need to look elsewhere
Commercial auto insurance requirements in Michigan
Michigan requires everyone to have mandatory no-fault insurance. There are three parts to every policy:
- Personal injury protection (PIP): Pays for bodily injury and medical expenses, including lost wages, for you and for your passengers.
- Property Protection Insurance: This covers you for the damages to other people’s property, such as parked cars, fences, and buildings.
- Residual liability insurance: Pays for bodily injury and property damage you cause in an accident where no-fault laws don’t apply. This could include accidents where you seriously injure or kill someone, if you are involved in an accident with someone who is not a Michigan resident, or if you are in an accident outside of Michigan.
Michigan requires everyone to have at least a 50/100/25 policy: $50,000 per person, $100,000 per accident and $50,000 in property damage. This is the bare minimum. One accident with more than one passenger can easily exceed the $100,000 limit.
Commercial auto insurance in all cities in Michigan
Commercial auto insurance is required legally in all cities in Michigan. If you use a vehicle for any business purpose in any city in Michigan, you must have commercial auto insurance:
|Grand Rapids city||Clinton charter township||Macomb|
|Warren city||Flint city||Troy city|
|Ann Arbor city||Livonia|
What does commercial auto insurance cover?
Commercial auto insurance works like your personal auto policy does: it covers you for bodily injury and third party property damage if you are in an accident. In addition to the bare minimum of bodily injury and property damage insurance, you can also get collision and comprehensive insurance, which covers any damage to your commercial vehicle if it’s in an accident, or if it’s damaged by weather, vandalism, or theft.
Learn more at Commercial Auto vs. Personal Auto Insurance: Why You Need to Know the Difference?
Who needs commercial auto insurance in Michigan?
If you drive for work (with the exception of commuting back and forth) you need commercial auto insurance. Personal auto insurance will not cover you if your insurance company finds out you were driving for any business-related reason, such as visiting clients, making deliveries, or transporting people. People who drive for Lyft or Uber can sometimes get something called Rideshare insurance, which was developed for such uses.
How much does commercial auto insurance cost in Michigan?
The average cost of commercial auto insurance in Michigan is $542 per month, or $6,504 per year. Most small businesses in Michigan pay between $5,100 and $8,820 per year for their commercial auto insurance policy, making Michigan one of the more expensive states for commercial auto insurance.
However, a lot of different factors go into the cost of commercial auto insurance, so you might pay less (or more). Be sure to shop around with a few companies or work with a top broker like Simply Business, InsurePro, or CoverWallet to compare several quotes in one place to select the cheapest one for your business. If you want to get quotes online, Progressive and InsurePro are the only two providers offering commercial auto insurance quotes online.
What factors impact commercial auto insurance cost in Michigan?
Many things influence what you’ll pay for commercial auto insurance, such as:
- What kind of car/truck you drive: if you drive a tractor trailer, you will pay more for insurance than someone who drives a Toyota Camry. Generally, the larger and heavier the vehicle, the more it costs to insure because it will cause more damage if it’s involved in an accident
- Driving record: your driving record and any people who drive for you. Even one ticket can raise your rates by hundreds of dollars a year.
- How far you drive: if you typically drive less than 50 miles, you’ll pay less than someone who drives hundreds of miles. The insurance companies figure the longer you drive, the more time you’re on the road, the more likely it is that you’ll be in an accident.
- Claims history: if you have previous violations and or claims, you’ll pay a higher rate than someone who has never had an accident or violation
- How much insurance you buy: the state does set forth minimum coverages, but these are very low. Just one accident can easily bankrupt you, so you’ll want to consider more coverage
- Deductible: you can save money on insurance by having a higher deductible, but just make sure you have that money set aside somewhere in case you need it
- Location: even within the same state, rates vary by location/zip code, as some areas have higher crime rates than others
How to get cheap commercial auto insurance in Michigan
The easiest and most effective way to save money on commercial auto insurance is to get several quotes from at least three insurance companies. You might be surprised at how much rates vary among companies. Also, it doesn’t take much effort to fill out online forms or even speak to someone on the phone. It’s a great return for the investment of just an hour or two.
You can also ask about discounts. Many companies offer discounts for things like paying in full, using electronic fund transfer to pay premiums, bundling with your homeowners insurance, or professional organization membership. You are bound to qualify for at least a few discounts.
Emphasize safety: drivers can sometimes cut corners or drive while tired if they have a deadline they need to meet. Make sure to stress the importance of safe driving, and encourage employees to drive only when alert and rested.
Make sure vehicles are maintained and inspected before each trip. Inspections such as these can catch minor problems before they become major problems and lead to an accident.
Learn more at the cheapest commercial auto insurance companies
Get commercial auto insurance quotes online in Michigan
So far, the only company that consistently gives online quotes is Progressive. InsurePro is another broker that provides commercial auto insurance quotes online in Michigan. A few other online brokers that pull quotes from several insurance companies that are worth looking into, such as:
- Simply Business
- Smart Financial
They are worth a look. Some of them will only hook you up with an insurance company, so you’ll have to enter your information again when you get to that company’s website. But it’s still worthwhile, as you could save hundreds of dollars.
Learn more at the best commercial auto insurance quotes online
Commercial auto insurance policy examples in Michigan
Different companies will pay different amounts for their commercial auto insurance policies. Below are a few examples for your reference:
|Business A – A casual restaurant||Business B – A business cleaning service||Business C – An IT consulting firm|
|Car types||2018 Toyota RAV4||2019 Hyundai Kona||2017 BMW S3|
|Comprehensive||included with $500 deductible||included with $500 deductible||included with $1,000 deductible|
|Collision||Included with $500 deductible||Included with $500 deductible||Included with $500 deductible|
|Underinsured and uninsured||$100K/$300K/$25K||$100K/$300K/$50K||$100K/$300K/$50K|
|Emergency road service||Included||Included||Included|
|Rental reimbursement||$60/day, $1,800 max||$60/day, $1,800 max||$80/day, $2,400 max|
|Gap insurance||no||no||yes , up to $500K|
|Monthly premiums||$580 per month||$510 per month||$645 per month|
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