When personal auto stops
Personal auto policies exclude or restrict “business use” beyond commuting and occasional errands. Vehicles titled to a business, vehicles used to carry tools, equipment or goods, vehicles used for deliveries, and vehicles driven by employees are the usual triggers. Some carriers will endorse a personal policy for light business use by the owner; heavier use, business ownership or employee drivers mean a commercial auto policy.
What commercial auto adds
Higher liability limits (contracts often require $1,000,000), coverage for vehicles owned by the business, the ability to list employee drivers, and — importantly — hired and non-owned auto coverage. That last one covers the business when an employee drives their own car on company business, or when you rent a vehicle. It is the coverage most small businesses are missing.
Michigan no-fault still applies
A commercial auto policy in Michigan still carries PIP, PPI and the state’s liability requirements. Fleet vehicles and vehicles used for hire have additional rules. Carly will walk through the PIP selection for business vehicles; the options differ from a personal policy in some cases.
Trailers, equipment and cargo
A trailer needs its own line on the policy. The equipment inside the truck is not auto coverage — it is inland marine (tools and equipment). Goods you are carrying for someone else may need cargo coverage. Each is a separate question; ask them together.
This guide is general information about insurance in Michigan, not advice about a specific policy. Coverage depends on the policy’s terms, limits, exclusions and eligibility, and a request does not bind or change insurance.