How Much is Commercial Car Insurance in Michigan?

If you’re running a business that requires the use of commercial vehicles such as sedan cars, delivery vans and trucks then it is crucial to invest in commercial car insurance. It is even more essential to ensure having commercial insurance here in Michigan especially due to the high number of traffic accidents.

According to Michigan State Police approximately 315,000 crashes occur annually. Commercial vehicles are driven a lot more frequently compared to personal vehicles. So, this makes it crucial for you to keep your commercial vehicles financially protected with commercial car insurance.

f you’re interested, you might be wondering how much does commercial car insurance cost in Michigan? As of March 2025, the average cost of commercial car insurance is $185 per month, which is $2,220 per year.

What Factors Influence the Cost of Commercial Insurance in Michigan?

When it comes to the cost of commercial car insurance, there are several factors that influence its rate. So, to help you get the most accurate estimate, here’s a detailed breakdown of commercial car insurance costs in Michigan.

Size of the Company, Number of Vehicles, and Employees

The size of your company is a key factor in determining your business’s commercial car insurance rate. This is mainly because larger businesses usually have a higher number of vehicles and employees.

Generally, the more vehicles and employees your business has, the higher your total insurance premiums are likely to be. According to Michigan State Department it is mandatory for every business in Michigan to insure every single vehicle the business owns.

Additionally, insurance companies consider the number of employees who drive company vehicles. If multiple employees have access to the fleet, insurers assess their individual driving records, which can impact your rates. A higher number of drivers increases the potential risk of claims, leading to higher premiums.

Types of Commercial Vehicles

The cost of your commercial car insurance will widely vary by vehicle type, make, and model. For instance, sedan cars are much cheaper to insure compared to larger vehicles such as mini vans, vans, and trucks.

If you have trailers, it will incur additional premium costs, this is mainly because trailers are regarded as a separate vehicle although it’s attached to vans or trucks for transportation or distribution.

There are certain makes and models of cars, vans, trucks and other vehicles that are expensive to repair, whether it’s due to the cost of parts, or their availability. The repair costs can be significantly higher for older models as their parts are usually not readily available, which can make it more difficult and expensive to acquire.

Insurance Claims History

Insurance companies typically determine risk factors based on insurance claims history. The more frequently you’ve claimed your commercial car insurance in the past 3 to 5 years, the more expensive your insurance rate is likely to be in the following year.

Frequent insurance claims are a red flag to insurers as they increase the risk of compensating a substantial amount within significant time frames. The more insurance claims you and your employees make within a year, the higher your commercial car insurance rate is likely to be in the following year.

In a nutshell, your company’s insurance claims history is one of the most important factors when it comes to determining your commercial car insurance premiums.

Types of Commercial Car Insurance Coverage

There are many types of commercial car insurance, and your coverage rate will mainly depend on the ones that you choose to purchase. When it comes to the types of commercial car insurance, it is classified based on two categories; mandatory, and optional.

In Michigan the mandatory types of commercial car insurance include:  

• Liability auto insurance also known as PLPD Insurance 
• Personal injury protection (PIP) insurance 
• Property protection (PPI) insurance

Only a few types of commercial car insurance are mandatory, but for adequate financial protection that’s not enough. So, it is crucial to consider essential optional commercial car insurance coverage such as collision car insurance, comprehensive car insurance, gap insurance, underinsured/uninsured motorist coverage among others.

Apart from the types of commercial car insurance, your business’s insurance premiums will also vary depending on how much coverage you’re purchasing. For the mandatory coverage options, you can either purchase the minimum coverage, or you can acquire a higher coverage limit.

Whether you’re purchasing mandatory commercial auto insurance coverage, or the optional ones, the rate, and overall cost of insurance will depend on the type of coverage and the limits that you select.

If you’re looking for a reliable auto insurance agency in Michigan offering commercial auto insurance, you should consider exploring our insurance solutions.

Location

When it comes to determining your commercial car insurance rate, your company’s location is another crucial factor. Even within the same state, insurance rates can widely vary from one city to another.

Location based commercial car insurance rates are mainly determined on the average number of accidents, insurance claims, and crime rate in the particular area or region. Usually, large cities with a complex urban infrastructure, and traffic system tend to have a higher number of car accidents and insurance claims compared to smaller cities with a lower population density.

For instance, car insurance is significantly more expensive in cities such as Detroit, Dearborn, and Flint, compared to Ann Harbor, Saginaw and Mount Pleasant.

If you’re located in Flint, Saginaw or Mount Pleasant, you can visit our regional offices there to consult with specialized auto insurance experts.

Driving History of Every Employee

Based on the driving history and record of every employee, your insurer will assess how risky it is to insure your company. If most employees in your company have a poor driving record with frequent accidents, then your insurer will charge you a higher rate.

Similarly on the other hand, if most employees in your organization have a clean driving record, then you will get a lower rate as your company will be deemed less risky to insure, along with attractive discounts, bundle plans and other cost saving offers.

Remember insurers have access to the local DMV, so they can access and verify the driving record of any individual. So, that’s why it is crucial to foster a company culture where saving driving is highly prioritized.

How Much Does Commercial Car Insurance Cost in Michigan?

The average cost of commercial car insurance in Michigan is $73 per month for minimum coverage which is $876 a year. And, for full coverage it ranges from $185 to $273 per month or more, which is $2,250 to $3,276 in a year.

As of 2025, that’s the state average in Michigan, but the actual commercial car insurance rate is not determined by the state average. Figuratively the state average rate gives you a near estimate of how much insurance rate you need to pay.

So, to get a closer estimate to a more realistic figure, it is essential to narrow down and tap into rates that’s more specific for your company, which include the following.

Average of Commercial Car Insurance Cost by City

The cost of car insurance can widely vary from one city to another here in Michigan. While there are some cities that have expensive insurance rates, there are cities where it’s quite cheap.

To get a clear idea, the following tables feature the 5 most expensive and cheapest cities in Michigan based on Bankrate’s report.

5 of the Most Expensive Cities for Commercial Car Insurance in Michigan.

5 Cheapest Cities for Commercial Car Insurance in Michigan.

Average Cost Based on Vehicle Types

Commercial car insurance rates can significantly vary based on the vehicle types. As of March 2025, here are the insurance premiums based on vehicle types as follows.

• Sedan Cars used for Business Purposes: $600 to $ 2,400 
• Delivery Van: $3,300 to $6,200 
• Semi-Truck: $8,000 to $12,500 
• Limousine: $4,000 to $10,000

How to Reduce the Cost of Commercial Car Insurance?

Depending on the size of your company and the number of vehicles you own, and use for commercial purposes, your insurance rate can mount up from a few hundreds to thousands of dollars. Paying significantly high commercial car insurance premiums can be a heavy toll on your business.

So, to bring down commercial car insurance cost, here are some effective tips that you should consider following as suggested below.

• Foster a Safe Driving Culture: By encouraging a safe driving culture, you can influence and motivate your employees to drive safer, especially when they’re driving for commercial purposes.   
• Recruit Drivers with a Clean Driving Record: You will need dedicated drivers for transporting commercial goods and products and for providing services. So, make sure to recruit drivers with a clean driving record.   
• Apply Safe Driving Training Programs: In order to groom your employees to maintain safe driving practices, you can hold routine training programs to build further awareness about road safety, and how they can avoid accidents.    
• Monitor Employees Who Drive Commercial Vehicles: You can use a dash cam to monitor employees who drive, plus you can also hire a supervisor who will effectively monitor the drivers and take disciplinary action if necessary. On the other hand, you can even reward employees who drive safely with various incentives.    
• Opt for Telematics Insurance: Not all vehicles are driven as frequently. Some vehicles are used more often while others stay idle for a significant time period. You can save on auto insurance with commercial car insurance per mile, also known as telematics insurance. Company vehicles or cars that are driven less than 7500 miles a year can save up to 40% on premiums.    
• Seek Discounts and Bundle Plans: You can ask your insurer whether they have any discount offers for you. If every employee in your company has a clean driving record, then you may be eligible for attractive discounts, and cost-saving bundle plans.

Final Remark: Should I Get Commercial Car Insurance in Michigan?

If you’re still wondering whether you should get commercial car insurance in Michigan, well, as long as your business runs its operations using commercial cars and vehicles, it is mandatory legally for you to get commercial auto insurance.

In Michigan, no one is allowed to drive on the streets without proof of auto insurance. And, as personal auto insurance does not cover business use, it is crucial for you to ensure having commercial auto insurance to stay legally complaint and financially protected.

If you’re interested in knowing about commercial car insurance, or if you would like to obtain a policy for your business, please contact us to get a free quotation, and consultation.

FAQ

How much is commercial car insurance per month in Michigan?

On average commercial car insurance costs about $73 a month for minimum coverage, and $185 per month for full coverage. However, commercial car insurance rates can significantly vary based on the city that your company is in, employee driving records, insurance claims history and more. 

Is commercial car insurance more expensive?

Yes, commercial car insurance is generally more expensive than personal car insurance, especially because it covers more drivers and vehicles. Moreover, as commercial vehicles are driven a lot more frequently than personal cars, there’s a higher risk of getting into accidents leading to increased claims.  

How to get cheap commercial auto insurance?

To get commercial auto insurance at a cheaper rate, you should enforce safe driving practices in your workplace and provide routine training. Apart from that you can opt for telematics insurance, seek discounts and bundle plans to get cheaper insurance premiums.