Guide to Commercial Car Insurance in Michigan (2025)

Having commercial car insurance is a legal requirement if you use a vehicle for business in Michigan. If you already have personal car insurance, it won’t cover your vehicle when you’re using it for business, so you’ll need a commercial policy.

Like with regular car insurance, it’s important to compare car insurance quotes when buying a commercial car insurance policy.

Here’s what you should know about commercial car insurance in Michigan, including minimum requirements, how to find a policy, and the best insurers.

Commercial car insurance requirements in Michigan

All vehicle owners in Michigan need car insurance, including businesses, self-employed drivers, and people who use personal cars for work purposes, even if only occasionally. Your personal auto insurance won’t cover you if you’re using your personal vehicle for business.

Here are the minimum auto insurance requirements for personal and commercial vehicles in Michigan:^[1]

• $50,000 per person in bodily injury liability

• $100,000 per accident in bodily injury liability

• $10,000 for property damage liability (for damage in another state)

You must also carry between $50,000 and unlimited in personal injury protection (PIP) coverage and $1 million in property protection insurance.^[2]

If your business has for-hire limousines, you’ll need a combined coverage limit of $1 million for bodily injury and property damage liability.^[3]

The Federal Motor Carrier Safety Administration (FMCSA) also requires businesses to carry more coverage for vehicles that cross state lines. The exact coverage limit you need to meet depends on vehicle type and cargo, but the limits range from $750,000 to $5 million.^[4]

Optional commercial auto insurance coverages

You can add some additional commercial auto insurance coverages to your policy for extra protection. Here are some common optional coverages to consider:

• 

  Collision coverage

  Collision insurance covers your vehicle in the event of a car accident or collision, regardless of fault.

• 

  Comprehensive coverage

  Comprehensive insurance can kick in for damage from non-collision incidents, such as vandalism, theft, and severe weather.

• 

  Uninsured/underinsured motorist coverage

  UM/UIM insurance pays for damage that an uninsured or underinsured driver causes.

• 

  Hired and non-owned auto (HNOA) coverage

  Hired and non-owned auto insurance pays for liability coverage for vehicles that you use for your business but don’t own.

• 

  Roadside assistance coverage

  Roadside assistance coverage pays for towing expenses, breakdowns, flat tires, jumps, and other roadside services.

• 

  Rental reimbursement coverage

  Rental reimbursement can cover the cost of a rental car if your business vehicle is in the shop due to a covered loss.

• 

  Cargo or equipment coverage

  This covers the cost of tools or equipment in the event of theft, damage, or loss during transportation.

Do you need commercial car insurance in Michigan?

Not everyone in Michigan needs commercial car insurance. But if you have a business vehicle, you will. Here are a few scenarios when you’ll likely need commercial auto insurance.

• Employees driving work trucks: This is a typical example of when your business would need commercial car insurance. Personal policies won’t apply to work trucks you or your employees use for business purposes.

• Delivery drivers using personal vehicles: If you use your personal vehicle to deliver for DoorDash, Postmates, Amazon, or another service, you’ll need a commercial coverage plan.

• Rideshare drivers: Standard personal auto policies don’t include rideshare coverage. You’ll need a separate commercial or rideshare policy or add-on.

You likely won’t need commercial car insurance in the following cases:

• Employees driving to work: Commuting qualifies as a personal use of your vehicle.

• Picking up lunch for the office: Using your personal vehicle to get food and bring it back to your office still counts as personal use.

Best commercial car insurance companies in Michigan

No single commercial car insurance company in Michigan is the best for all businesses. But a few companies stand out based on coverage options, pricing, discounts, customer service, and claims satisfaction.

Below, take a look at some of the best commercial car insurance companies in Michigan for a few different business needs.

Progressive: Best overall

Michigan Farm Bureau: Best for local service

USAA: Best for active military, veterans, and their families

Average cost of commercial car insurance in Michigan

The average cost of commercial car insurance in Michigan ranges from $270 to $1,470 per month. Keep in mind that this is just an average range, and your exact rate will vary based on numerous factors.

Your employees’ driving histories, how you use your fleet, and the coverage, add-ons, and deductibles you select will all affect how much you pay for coverage. Your fleet’s vehicle makeup, size, cargo, routes, and typical uses also influence average premiums.

What business owners should know about commercial auto insurance in Michigan

As a business owner, when you’re buying a commercial auto insurance policy, you should keep a few things in mind. First, commercial auto insurance policies are almost always more expensive than personal car insurance policies. Insurers typically charge higher premiums because these policies tend to have higher liability limits, more coverage, and increased risk factors.

When you’re looking for a policy, you should assess your business needs and risk based on your drivers’ driving records, your fleet size, what vehicles you’re using, and the cargo you’re hauling. You should be aware that some insurers have coverage limitations and exclusions, such as when you use the vehicle outside of its typical use.

The claims process works similarly to personal insurance. You’ll report the incident to your insurer, submit relevant information, and work with the company throughout the process.

In many cases, the cost of commercial auto insurance is tax-deductible as a business expense. Talk to an insurance agent and tax professional to ensure your policy qualifies.^[5]

How to get commercial car insurance in Michigan

Getting commercial car insurance in Michigan is similar to buying a personal auto insurance policy, just with a few more steps. Here’s what you need to do:

1. Assess your business needs. Consider your business to determine its coverage needs. If you’re not sure how much coverage you need, contact an insurance agent to walk you through the process.

2. Collect vehicle and driver information. Gather all the relevant information for your drivers and vehicles, as your insurer will ask you to provide this during the quoting process.

3. Compare car insurance companies. It’s important to compare car insurance companies against one another. This allows you to compare coverages, customer service, and prices.

4. Choose your coverages. Pick the coverages that you’ll need to protect your business. Some add-ons can be worthwhile depending on your business needs, but don’t waste money on coverages you won’t need.

5. Buy a policy. Once you’re happy with a company and policy, go ahead and complete the purchase. Make sure to keep any relevant documents on hand, both digitally and physically, in case you ever need to file a claim.

Commercial auto insurance in Michigan FAQs