Tag Archives: michigan auto insurance

Dangers of a Personal Auto on a Business Policy

Dangers of a Personal Auto on a Business Policy 

Young Asian Engineer working with laptop computer while sitting on car trunk at parking lotWhile It is true that using a vehicle for business while insured on a personal policy could potentially void all coverage, there are also pitfalls insuring your personally owned and titled vehicle on your business policy. Consider the following:

  • If a vehicle is NOT titled in the company name, but the insurance coverage is in the business name, coverage can be denied. This includes both physical damage AND liability protection for you or others.
  • No-fault personal injury protection may not be included.
  • Coverage may not extend to other drivers
  • Liability protection might not follow you when driving vehicles other than your own the way a personal policy does. This can apply both when you borrow and rent a vehicle.

Depending on your specific situation, there are various ways to make sure you are not left financially vulnerable. The insurance professionals at Cobb-Hall may recommend one or more of the following:

  • Endorsements to your business policy are available to close gaps between business and personal insurance policies. These include “drive other car” and “hired and non-owned”.
  • It is best for family members in your household to have a personal policy instead of adding their car to the business policy.
  • Often a personal insurance policy, with multi-policy discounts, is more cost effective.
  • Many times legal gaps can be avoided by contracts and leasebacks. A professional can provide the needed forms to sign.

Contact  Cobb-Hall to help you with determine the best solution for you.

 

 

Drive Other Car Coverage

Drive Other Car Insurance

If you have a company vehicle and do not have a personal auto policy, you are at risk if you rent, Driving at sunset. View from the driver angle whileborrow, test drive or lease another car. A commercial policy ONLY covers you while driving the assigned company vehicle. Many business owners save money by insuring their private vehicles on company policies, not realizing they have NO COVERAGE if they drive another vehicle.

If you are an executive of a partnership or corporation, Drive Other Car coverage can be added to your existing commercial policy to protect you and your spouse. When using a vehicle other than your company vehicle, this coverage provides the same protection to vehicles you use that you have on your company vehicle.

With Drive Other Car coverage in place, if your neighbor lends you his pickup truck, you will have coverage to protect yourself, in the case of an accident, if you are injured or sued for injury to someone else. This coverage will also apply if the owner has low liability limits.

Commercial Insurance can be complicated, contact the experts at Cobb-Hall Insurance for innovative solutions designed specifically for your needs

 

Auto Insurance-Michigan IS Different

Confused about your Auto Insurance?  Michigan IS Different!

Here is a brief explanation of available coverages for you to consider regarding decisions on your auto insurance in Michigan

Mandatory Coverages

  • Bodily Injury Covers payments you are legally liable to pay for injury you cause to others. 
  • Property Damage Covers payments you are legally liable to pay for damage you cause to other’s property.
  • Property Protection Covers up to $1,000,000 for damage you cause to other’s property in the State of Michigan.      
  • Personal Injury Protection (PIP) The broadest no-fault medical coverage in the U.S.; PIP provides payment for injury to you or your household members including unlimited lifetime disability.
  • Excess/Coordinated or Primary/Full PIP An important consideration with PIP coverage is whether your policy is listed as Excess or Primary. Excess PIP  indicates you are covered by another medical policy that covers auto related accidents first. If this policy is not applicable, a deductible will apply.
  • MCCA Michigan Catastrophic Claims Association Contribution to state fund for medical expenses and disability as a result of an auto accident related catastrophic loss.

 Optional Coverages

  • Limited Property Damage Mini-tort Covers up to $1000 for damage you cause to another vehicle.
  • Uninsured Motorists Covers you when someone without insurance is legally responsible for your injuries.  
  • Underinsured Motorists Covers you when someone with low insurance limits is legally responsible for your injuries.      
  • Comprehensive Covers your vehicle for damage NOT from a collision. Example: fire, theft, wind, vandalism, etc.  
  •  Collision There are 3 types for you to choose from:

Broad If you are less than 50% at fault for an accident, (as shown in the police report) you do not pay deductible.
Standard/Basic You always pay your collision deductible.
Limited NO collision coverage unless someone else is more than 50% at fault (as shown in police report)

  •  Rental Reimbursement Covers specified amount to rent a vehicle while yours is being repaired due to a covered loss.     
  • Towing Covers specified amount in the event you need towing or road service.    
  •  Lease/Loan Gap Provides payment for the difference between the amount you owe the loan/lease company and actual cash value of a covered vehicle in the event of a total loss. This is important as many times the amount of the loan or lease is much higher than the value of the vehicle.  
  • Additional Endorsement for Rental Car This provides for gaps in coverage for a car you rent.

 Contact Cobb-Hall Insurance to help you determine the insurance protection that best fits your needs.