Insurance company say I have to keep insurance on broke down truck

It isn't just Texas, with commercial liability your insurance company is covering any vehicle in the companies name, even if it isn't specifically declared or if you hire a lease operator, etc. They have promised the DOT (Federal or State) that you as a motor carrier have insurance to cover the public in case of an accident so they will not allow any company assets to be uninsured. This is to protect them if you decide to take the truck out "just this once" and are involved in a incident, they would have to cover your liability even if the truck wasn't specifically declared, so since they know you own the truck they will keep it on the policy until you can prove it is out of your name or has been permanently taken out of service.

You may also have a problem with the lien holder if the truck is financed, they will want full coverage to remain in effect to protect their interest in the vehicle in case of damage, theft, etc.

 

Sell it to a "friend" who owns another company. And buy it back when its time to hit the road again. Have a friend who does it all the time when a truck goes down for a long repair and I would do it too if I had 2 trucks and one sitting as backup or something.

 

Have you depreciated this company asset to zero or close and wouldn't she only need to pay taxes in the sales price not value?


You may need to consult a tax professional.

 

The title doesn't have to be in the companies name to run for the company just title it in your name like a personal vehicle then when you're ready to put it back to work lease it on to your company

 

Nobody needs to pay sales tax. Just tell the insurance company that you sold it, provide a bill of sale if necessary and don't worry about it. You aren't breaking any laws having something you own sit on your property with no insurance lets be real here

 

I had the same problem in Pa. All I did is sold it to myself for a $100 and paid $6 sale tax plus $50 to change title over done deal. I hope you can do the same thing

 

That's what I'm talking about but a tax professional will let you know if you can do this without declaring a loss on the asset that you need to carry on your business. Because the truck isn't working it is a loss... But they can tell you how to write it off without looking fraudulent or triggering an audit.

 

It's due to the FMCSA or state Form E filings.........we, as a carrier advise the authority that we are providing coverage on "all vehicles owned, operated or leased to the named insured", so obviously we want to make sure we have all of those type units. We require a Bill of Sale, Lease termination or DMV non-Op registration to delete scheduled units.

 

How do you put a Class 8 truck on Non op? My 96' just twisted the frame and they won't let me take it off. I don't want to sell it because I still want parts from it. I already sent the commercial plates back in. I hate to make up a fake bill of sale just to get them off my back, but I'm not gonna pay 1200 a month to keep insurance on it just because they're being unreasonable. Already sent pictures of the wrecked frame to them.