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Last-mile delivery insurance in Michigan

MCL 257.2123, effective March 21, 2017, requires residual third-party liability of $50,000 per person, $100,000 per incident, and $25,000 property damage while a driver is logged on and not on a prearranged ride, plus the personal-protection and property-protection insurance in Insurance Code chapter 31. On a prearranged ride the residual liability limit is a $1 million combined single limit, again with those no-fault coverages. The definitions in MCL 257.2102 limit the service to transporting passengers. The Department of Insurance and Financial Services says insurers can exclude TNC driving from personal auto coverage. 1,3

What Is Last-Mile Delivery?

Last-mile delivery insurance is not one standard policy: vehicle liability, vehicle damage and cargo protection can be separate. If your staff deliver orders in company, rented or personal vehicles, check each vehicle, cargo and worker-injury exposure in the quote. Read the national Last-mile delivery guide.

Michigan Requirements

RequirementDetails
Logged on, not on a prearranged ride$50,000 / $100,000 / $25,000 residual liability, plus required no-fault coverages 1
Prearranged ride$1 million combined single limit, plus required no-fault coverages 1

What to Watch for in Michigan

  • No-Fault Coverages Stay On in Both Periods

    The residual liability numbers are not the whole requirement. MCL 257.2123 also requires personal protection insurance and property protection insurance under chapter 31 while logged on and while on the ride. A liability-only quote that omits those no-fault coverages does not meet the section. 1

  • Personal Policies May Drop TNC Driving

    The Department says insurers can continue to exclude driving for a transportation network company from personal auto coverage, citing MCL 500.3017. If that exclusion is on the policy, the residual limits and the no-fault coverages have to come from the company coverage as soon as the driver is logged on. 3

  • The Section Transports Passengers

    MCL 257.2102 defines the prearranged ride as transportation of passengers. A food or parcel delivery is not that ride. Do not treat the $1 million combined limit, or the no-fault stack, as a goods-delivery mandate. 2

Who Regulates Insurance in Michigan

Michigan Department of Insurance and Financial Services

The Michigan Department of Insurance and Financial Services licenses agents, agencies and companies, supervises insurance business, and helps resolve complaints. You can use its state lookup or complaint service to check a license or raise an insurance issue. 4,5,6

Surplus-lines tax and stamping office

Reported tax rate: 2.5% combined surplus-lines tax and regulatory fee on premium when Michigan is the insured's home state Michigan's Property and Casualty Guaranty Association is funded by insurers authorized to transact in the state; an insurer procured solely under Chapter 19 is expressly not considered authorized for that chapter. The surplus-lines policy must carry a notice that the insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. 7,8,9

Providers With Documented State Licenses

No provider in Spot’s research documents both a state license record and this coverage line. This does not establish that providers are unlicensed. Check the regulator’s license lookup and confirm availability with a provider when requesting a quote.

Questions to Ask Before You Buy in Michigan

  1. Does the quote include personal protection and property protection insurance in both the logged-on period and the ride?
  2. Does the personal policy exclude TNC driving under the rule the Department cites as MCL 500.3017?
  3. Is the $1 million combined limit a prearranged passenger ride, or are you applying it to a delivery MCL 257.2102 does not define?

Last-Mile Delivery in Michigan: FAQ

What residual liability limit does Michigan require during a prearranged transportation-network ride? 1

$1 million combined single limit. MCL 257.2123 sets that amount and still requires the chapter 31 no-fault coverages. 1

Can a Michigan personal auto policy exclude transportation-network driving? 3

Yes. The Department of Insurance and Financial Services says insurers can exclude that driving, citing MCL 500.3017. 3

Last-Mile Delivery in Other States

Other Coverage in Michigan

Sources

  1. MCL 257.2123. Michigan Legislature; subsections (1)-(3); History Eff. Mar. 21, 2017. Accessed 2026-09-29.
  2. MCL 257.2102. Michigan Legislature; definitions of transportation network company and prearranged ride. Accessed 2026-09-29.
  3. Auto Insurance Reform FAQ. Michigan DIFS; question 7. Accessed 2026-09-29.
  4. Department of Insurance and Financial Services. Department of Insurance and Financial Services; Official regulator and insurance oversight. Accessed 2026-09-28.
  5. Insurance License Lookup. Department of Insurance and Financial Services; State-designated producer/company search. Accessed 2026-09-28.
  6. File an Insurance Complaint. Department of Insurance and Financial Services; State complaint process and contact. Accessed 2026-09-28.
  7. Surplus Lines Licensee: Filing the Surplus Lines Taxes. Michigan Department of Insurance and Financial Services; DIFS current filing page: Michigan-home-state placements taxed at 2.5% combined tax and regulatory fee; separate fees charged to insured are not included in premium tax base. Accessed 2026-09-28.
  8. Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.7911(1)-(2), 500.7921(b): association membership tied to insurer authorized to transact; insurer procured solely under Chapter 19 is expressly not authorized for guaranty chapter. Accessed 2026-09-28.
  9. Michigan Insurance Code, Chapter 500. Michigan Legislature; MCL 500.1922 requires policy notice that insurer is not Michigan-licensed and insolvency claim payment may not be guaranteed. Accessed 2026-09-28.
  10. Licenses. At-Bay; Current producer introduction and state table; At-Bay Insurance Services LLC; P&C and surplus-lines identifiers. Accessed 2026-09-21.
  11. Licenses and Carriers. Coalition; Licenses and Carriers, re-read 22 September 2026: Insurance Licenses table for Coalition Insurance Solutions, Inc., national producer number 18419475, with producer and surplus-lines numbers for all 50 states and DC including California 0L76155, Georgia 196479, Texas 2199630 and 2205589, Pennsylvania 815731 and 817452, Colorado 539028 and Wisconsin 3000108852. Insurance Carriers table naming, with NAIC numbers, Allianz Underwriters Insurance Company 36420, Arch Specialty Insurance Company 21199, Ascot Specialty Insurance Company 45055, Ascot Insurance Company 23752, Aspen Specialty Insurance Company 10717, Chaucer Insurance Company DAC, Coalition Insurance Company 29530, Fireman's Fund Indemnity Corporation 11380, Fortegra Specialty Insurance Company 16823, Lloyd's of London, MSIG Specialty Insurance USA Inc. 34886, MS Transverse Specialty Insurance Company 41807, Steadfast Insurance Company 26387, Vantage Risk Specialty Insurance Company 16275 and Zurich American Insurance Company 16535. Accessed 2026-09-22.
  12. Insurance Producer Licenses. Corgi Insurance; Current complete Insurance Producer Licenses table for Corgi Insurance Services, Inc.; 50 rows covering 49 states and DC (DC 3003091619); no New Mexico row; no NPN or as-of date shown. Accessed 2026-09-28.
  13. About Hiscox US Insurance. Hiscox; Hiscox Insurance Company Inc. NAIC 10200 as Chicago, IL domiciled insurer admitted or licensed in all 50 states and D.C.; Hiscox Inc. as general agent and Lloyd’s coverholder for Syndicates 33 and 3624; surplus-lines placements through licensed surplus-lines brokers; A.M. Best rating statement. Accessed 2026-09-16.
  14. Licenses. ERGO NEXT Insurance; Current entity-by-state license table reopened 28 September 2026: 50 rows under Next First Insurance Agency, Inc., including Washington, DC; New York rows instead list Next Insurance Services PC-1423070 and AP Intego BR-1198885. Accessed 2026-09-28.
  15. Insurance Licenses by State. TechInsurance; Current state table; identifies TechInsurance as a division of Specialty Program Group LLC d/b/a SPG Insurance Solutions; lists DC 3000041536 and labels Rhode Island “Individual licenses,” without an agency license number. Accessed 2026-09-28.
  16. Licenses. Vouch; Effective 16 January 2025: Vouch Specialty Insurance Services, LLC, NPN 19926463; P&C table (50 states and DC); surplus-lines table includes Idaho 870820; footnote says Georgia and Idaho do not issue agency-level surplus-lines licenses; Idaho retained as producer-only due to conflict. Accessed 2026-09-15.

Updated .

This guide is informational and does not determine whether a policy is available or meets your needs. Editorial policy. To suggest a correction, contact Spot with a supporting source.

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