About $239 a month
Commercial auto, Michigan
Insureon average for its Michigan customers, $2,866 a year, accessed November 2026
Michigan · state requirements
Commercial auto insurance in Michigan
For Michigan businesses running cars, vans, pickups and trucks: what no-fault law requires on a business policy, the PIP choice you must make and what coverage costs.
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Get commercial auto quotes in Michigan
What similar businesses pay
- Commercial auto, Michigan
- About $239 a month
- Business auto (national)
- $276 a month
- Contractor autos (national)
- $260 a month
Published benchmarks, not quotes. Your price depends on underwriting.
Cost
What commercial auto insurance in Michigan costs
$276 a month
Business auto (national)
Progressive Commercial 2025 national average; its median was $207
$260 a month
Contractor autos (national)
Progressive Commercial 2025 national average
$84 a vehicle a year
MCCA fee, unlimited PIP
Michigan Catastrophic Claims Association, July 2026 to June 2027; $19 with capped PIP
Insureon reports that its Michigan customers pay an average of about $239 a month, or $2,866 a year, for commercial auto, close to its $245 national average. Progressive Commercial’s 2025 national averages run from $260 a month for contractor autos and $276 for business autos to $926 for for-hire transport trucks, so one van or pickup sits near the low end and a heavy for-hire truck far above it. Two Michigan-only choices move the bill: the PIP medical level you pick and the MCCA fee, which from July 2026 is $84 a vehicle with unlimited PIP and $19 otherwise. DIFS says the 2019 reform’s mandated PIP price cuts never applied to commercial policies.
What moves your price
- The PIP medical level you pick: unlimited, $500,000 or $250,000 per person
- Bodily injury limits: the $250,000/$500,000 default or a signed choice of something lower or higher
- Vehicle weight and use, from sedans and cargo vans to for-hire trucks over 10,000 lb
- Where vehicles are garaged in Michigan and how far they travel
- Each driver’s record and how many people drive
- Whether you need state or federal filings for for-hire hauling
Michigan
What’s different in Michigan
Unlimited PIP is the default for a business policy
When the named insured is a business, the DIFS commercial PIP form offers only unlimited, $500,000 or $250,000 of PIP medical per person. If you return no selection, the policy may be issued with unlimited PIP and priced for it; a renewal keeps your expiring level.
The reform’s PIP price cuts skipped commercial policies
DIFS says the PIP premium reductions mandated by the 2019 reform sit in Chapter 21 of the Insurance Code and do not apply to commercial auto. The rest of the reform does, so businesses got the new PIP choices without a guaranteed rate cut.
250/500 is the default liability, not a ceiling
Insurers must issue $250,000 per person and $500,000 per accident in bodily injury liability unless you sign the state’s selection form, per DIFS. Limits as low as $50,000/$100,000 are allowed, but a serious crash involving a work truck can exceed either.
Property damage in Michigan runs through PPI
Property protection insurance pays up to $1,000,000 per accident for damage your vehicle does to buildings, fences and other property in Michigan (MCL 500.3121). It excludes damage to customers’ property in the course of a business repairing or servicing vehicles, which matters to garages.
The other driver pays little toward your vehicle
For accidents after July 1, 2020, a mini-tort claim against an at-fault driver tops out at $3,000, per DIFS. Repairing a damaged van or truck beyond that usually depends on your own collision coverage.
Driving uninsured is a misdemeanor
Under MCL 500.3102, an owner who runs or allows an uninsured vehicle on a Michigan road, and a driver who knows it is uninsured, faces a fine of $200 to $500, up to 1 year in jail or both.
Coverage
Coverage Michigan businesses need
Personal injury protection (PIP)
Pays medical costs, wage loss and replacement services for people hurt in your vehicle regardless of fault. A business picks unlimited, $500,000 or $250,000 of PIP medical on the DIFS commercial form.
How commercial auto works →Property protection insurance (PPI)
Required on every Michigan policy and pays up to $1,000,000 for damage your vehicle causes to property in Michigan, such as a storefront or a properly parked car.
How commercial auto works →Residual bodily injury and property damage liability
Covers lawsuits over serious injuries your driver causes and property damage in other states: $250,000/$500,000 by default, plus $10,000 for property damage.
How commercial auto works →Collision, comprehensive and mini-tort
Collision and comprehensive repair your own vehicles. Limited property damage (mini-tort) coverage pays up to $3,000 when your driver damages another car and is at fault.
How commercial auto works →Excess attendant care
If you pick $250,000 or $500,000 of PIP medical, your insurer must offer extra coverage for attendant care above that limit, per the DIFS commercial form.
Hired and non-owned auto
Covers liability when employees drive their own cars or rented vehicles on company business.
How commercial auto works →Motor truck cargo
Covers freight in your care. Michigan intrastate for-hire carriers prove cargo insurance on Form H with the Michigan State Police.
Umbrella or excess liability
Adds limits above your auto liability when a contract or customer asks for $1 million or more.
How umbrella / excess works →Rules
Michigan requirements
Every vehicle that must be registered in Michigan needs no-fault insurance: PIP, PPI and residual liability. Business policies follow the 2019 reform except its PIP rate cuts, and for-hire carriers add filings.
| Requirement | Applies to | What it means |
|---|---|---|
| No-fault security | Owners and registrants of vehicles required to be registered in Michigan | PIP, PPI and residual liability must be in force to register and drive, per MCL 500.3101 and the DIFS auto insurance guide. |
| Bodily injury liability | Every auto liability policy issued after July 1, 2020 | $250,000 per person and $500,000 per accident unless you sign the state form choosing lower limits, as low as $50,000/$100,000 (MCL 500.3009). DIFS treats a $510,000 CSL as equivalent. |
| Property damage liability | Accidents outside Michigan | $10,000 minimum under MCL 500.3009; damage inside Michigan is paid through PPI. |
| Property protection insurance | Every Michigan no-fault policy | Up to $1,000,000 for all property damage from 1 accident under 1 policy (MCL 500.3121(5)). |
| PIP medical selection | Policies where a business or company is the named insured | Unlimited, $500,000 or $250,000 per person per accident on the DIFS commercial form; the $50,000 and opt-out choices are not available to businesses. |
| MCCA assessment | Each insured vehicle, July 1, 2026 to June 30, 2027 | $84 per vehicle with unlimited PIP and $19 with any other PIP level, per the Michigan Catastrophic Claims Association. |
| Penalty for driving uninsured | Owners who permit operation and drivers who know there is no coverage | Misdemeanor with a $200 to $500 fine, up to 1 year in jail or both (MCL 500.3102(2)). |
| Out-of-state vehicles | Nonresident owners of vehicles not registered in Michigan | Need continuous no-fault security to operate in Michigan for more than 30 days in total in a calendar year (MCL 500.3102(1)). |
| Intrastate for-hire authority | For-hire carriers hauling within Michigan | Authority from the Michigan State Police Commercial Vehicle Enforcement Division; the insurer files liability on Form E, cargo on Form H, and $750,000 CSL applies to vehicles over 10,000 lb. |
Compare commercial auto options in Michigan.
One application, quotes from several insurers, reviewed by a licensed agent. Start with your email and finish later if you need to.
Pay less
How to lower the cost
- Price each PIP level: a capped $250,000 or $500,000 choice lowers premium and cuts the MCCA fee from $84 to $19 a vehicle, but DIFS warns injured people may then face uncovered costs.
- Ask for a price on each bodily injury option; DIFS says insurers must quote every option at new business and renewal before you choose.
- Limit who drives company vehicles and check every driver’s record before adding them.
- Raise collision and comprehensive deductibles on older vehicles you could afford to repair.
- Keep coverage continuous on every registered vehicle, since driving uninsured is a misdemeanor under MCL 500.3102.
- Compare quotes at renewal; Florin is an independent broker that compares options from several insurers.
Before you start
What underwriters ask for
- Vehicle list with VINs, weights, values and Michigan garaging addresses
- Driver list with license numbers, dates of birth and years of experience
- The PIP medical level you want: unlimited, $500,000 or $250,000
- Your bodily injury limit choice and any signed selection form
- USDOT number and Michigan intrastate authority, if you haul for hire
- Loss runs from current and prior insurers
- Limits your customers or contracts require on certificates
- Whether employees drive their own or rented cars on business
Common questions
Commercial auto insurance in Michigan: questions
Can my business choose the $50,000 PIP option or opt out of PIP?
No. DIFS says a business or company named insured is not eligible for the $50,000 option, the $250,000 option with exclusions or no PIP. Businesses choose unlimited, $500,000 or $250,000 of PIP medical.
What happens if I do not return the PIP selection form?
Under the DIFS commercial form, a new policy may be issued with unlimited PIP medical and charged accordingly. A renewing policy keeps the PIP level of the expiring policy.
Did the 2019 no-fault reform lower commercial auto premiums?
Not by mandate. DIFS says the required PIP premium reductions do not apply to commercial auto policies, though the PIP choices and other reform changes do.
How much is the MCCA fee on a business vehicle?
From July 1, 2026 to June 30, 2027 it is $84 per vehicle with unlimited PIP and $19 with any other PIP level, according to the Michigan Catastrophic Claims Association. Before the 2019 reform it was $220.
Will the at-fault driver’s insurer pay to fix my work van?
Only up to $3,000 through a mini-tort claim for accidents after July 1, 2020, per DIFS. Damage beyond that is generally paid by your own collision coverage.
Do trucks registered in another state need Michigan no-fault?
Under MCL 500.3102(1), a nonresident owner whose vehicle is not registered in Michigan must keep no-fault security in force to operate in the state for more than 30 days in total in a calendar year.
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Sources (13)
- Michigan DIFS: Auto insurance reform FAQ
- Michigan DIFS: Selection of PIP medical coverage, commercial/business form (2025 edition)
- Michigan DIFS: Michigan’s auto insurance law has changed (guide)
- Michigan Legislature: MCL 500.3102, penalties and nonresident vehicles
- Michigan Legislature: MCL 500.3121, property protection insurance
- Michigan Catastrophic Claims Association: assessment release, October 8, 2025
- AAIS Views: MCCA assessment fee for 2026–2027
- Insureon: Commercial auto insurance in Michigan
- Insureon: Commercial auto insurance cost
- Progressive Commercial: How much is commercial auto insurance (2025)
- Progressive Commercial: Michigan commercial auto insurance
- J. J. Keller: Intrastate operating authority, Michigan
- Tyler Insurance Filings: Michigan filing guide
Figures are published third-party estimates, not quotes. Coverage depends on policy terms and underwriting, and rules vary by state. Updated November 2026.