Who drives what? A quick way to sort your situation
“Business use” isn’t one thing. Start by listing the vehicles and drivers involved, then ask what each situation calls for.
| Situation | What to ask an agent |
|---|---|
| Vehicles the business owns or leases | How they should be insured as business vehicles, and whether the policy lists each vehicle and driver. |
| Employees driving their own vehicles for work | Whether the business has exposure when an employee is driving a personal vehicle on the job. Insurers sometimes call this “non-owned” liability, and it may or may not be relevant to you. |
| You occasionally use a personal vehicle for the business | Whether your personal auto policy is written to cover that use. The answer depends on the policy wording. |
| Rented or borrowed vehicles | Whether and how the business is covered when it rents or hires a vehicle. Insurers sometimes call this “hired” auto. |
What Michigan requires on the road
From the Michigan Department of Insurance and Financial Services (DIFS)
DIFS says that to drive legally in Michigan, state law requires the purchase of no-fault auto insurance, and that three basic coverages must be purchased and carried on every vehicle: personal injury protection (PIP), property protection insurance (PPI) and residual bodily injury and property damage liability (BI/PD).
Vehicles operated on Michigan roads are generally subject to these requirements, and how a commercial policy is arranged around them is a conversation to have with an agent. We explain the three parts in plain English on our auto insurance page.
Source: DIFS, auto insurance FAQ. State law and guidance can change, so confirm current requirements with DIFS or your agent.
Adding your first company vehicle changes the insurance conversation
These are the moments when the coverage you had may no longer match the way you operate:
- You’re adding a vehicle, a trailer or a piece of mounted equipment
- You’re hiring someone who will drive for the business
- You’re starting deliveries or regular trips to customers or job sites
- Vehicles are being used differently than when the policy was written
- You’re traveling with vehicles outside Michigan more often
What helps start a quote
- A list of the vehicles: year, make, model and VIN if you have it handy
- Where each vehicle is kept
- How each vehicle is used (deliveries, service calls, commuting, sales)
- How many people drive them. An agent may ask for driver details later, so please don’t send license numbers through this website.
- Your current coverage and renewal date
Common questions
Is a personal auto policy enough if I use my vehicle for work?
It depends on the policy and on how you use the vehicle. Some personal policies limit business use. Read the wording or ask an agent before relying on it.
What is “non-owned” or “hired” auto coverage?
They’re insurance terms for liability related to vehicles the business doesn’t own: an employee’s personal vehicle used for work, or a rented one. Whether they matter for you depends on your operations, and an agent can explain.
Does Michigan require insurance on business vehicles?
DIFS states that to drive legally in Michigan you must carry no-fault auto insurance. Details for a specific commercial vehicle can vary, so an agent can help you understand how it applies.
Do I need to list every driver?
Insurers generally ask about who drives insured vehicles. What’s required for your policy is something to confirm with your agent.