I own a trucking company with our own MC/DOT. All our trucks are titled under that company. I want to lease one of my trucks to a different company, and they will provide their own liability/cargo insurance (I still have to pay for it). The problem is I don’t want to keep paying for liability insurance on the truck on my policy but insurance is saying that I cannot remove the truck due to filings. I only need to have bobtail insurance/physical damage. Is there any way to go around that? I can tell them that I sold the truck and they’ll remove it, but I feel like if something were to happen, they would find out that I lied and some lawsuits would follow. Can someone advice on how to make it all happen and legal?
Obviously, I’d be wasting money paying for two liability coverages on the same truck.
I Own MC but trying to lease onto someone
Discussion in 'Trucking Industry Regulations' started by theguy1900, Jun 4, 2022.
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I recently went through the same thing with my insurance company. I have an extra truck that I was going to lease to another company.
About the only solution I can come up with is to start another company independent from the one with your authority. Insure it with non-trucking liability under the new company name.
Curious what others have to say..Rightlane76 and Another Canadian driver Thank this. -
Another Canadian driver Thanks this.
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I can’t answer your title question with any certainty but guessing you wouldn’t have to change the name on the title..?Another Canadian driver Thanks this. -
If the truck is paid for, then create a new company owned by the original company, move the asset there and lease the truck to the carrier, the whole owned subsidiary is a separate entity with no ties to the authority because it is not named as part of the operation.
if the truck isn’t paid for, the the newly established company will have to have the financing to the new company and become the responsible entity for the liability.wis bang Thanks this. -
Does anyone sub-lease any more?
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