LLC/ Canceling insurance issues?

They are scheduled vehicles on your MCS-90 endorsement. To remove them from the mcs-90 you need get rid of them per se…putting in your personal name.

 

This article explains it better than I can..

BLOWN ENGINES AND THE MCS-90 | Eastern Atlantic Insurance Company

 

MCS-90 doesn't list specific vehicles on the policy.

https://www.fmcsa.dot.gov/sites/fmc...ated in,be served by the insured or elsewhere.

 

I have same issue. Cost me $250 per month to have truck insured and sit in my driveway with no plates.

 

I have a few trucks that get scraped or sold off, they are not licensed, and according to my underwriter, they are off the road and no longer a liability that requires insurance. The agent needs to understand what is a road worthy vehicle and what is not and adjust the policy records accordingly.

 

Yes, the agent is correct. When you have a commercial auto policy with the MCS-90 endorsement (federal liability filing) they are obligated to cover any vehicle operating under that entity, even if it is not declared on the policy. The same is true for you as a Pennsylvania business if you had PA PUC authority and your insurance company was required to file form E with the PUC.

So, when they know you own other vehicles that could potentially be used as a commercial vehicle they will require them to be covered or disposed of. Some insurance underwriters won't even allow you to just put them in your personal name, they make you sell them to a disinterested third party or provide poof of them being scrapped or otherwise disposed of.

A few commercial insurance companies will allow you to return the registration plate to PennDOT and sign an affidavit that the vehicle is out of service, but many of the discount programs will not. They want the truck out of the company's name and often out of the name of any Officer of the company. They won't even care that the vehicle is used only for an intrastate operation or another sister business, if you have access to it they want it declared so that their premium is rated properly to cover thee risk of you "accidently" using it "just for this one trip" that they would be responsible for if there were a claim filed.

 

I had a second truck that I wanted to lease to another company and they wouldn’t let me due to the mcs-90. Just wanted to be able to put non trucking liability on it but noooo, lol.

The only solution was for me to start a second company s-corp, llc or whatever.and transfer the truck to the second company. I got a thread somewhere on TTR about it.

 

Okay, guess I misunderstood what my agent told me 4 years ago.

Back when my truck was stolen I reacted blindly by buying two trucks instead of being happy with one.

Was a super costly mistake on my part. Ended up doubling my insurance premiums! Didn’t have a second trailer so just wanted to lease it on to someone else until I got a handle on my brand new authority.

 

Before I was on mileage I never had a problem having to list a truck that was sitting for a while before trading in. Maybe some insurances just hammer the guy with a couple of trucks and not larger carriers. Now a truck doesn't move, doesn't cost anything.

Only time the FMCSA wants a VIN list is when they're doing a compliance review. You're supposed to have a MCS-90 copy of in your files.

Wouldn't be a bad thing if insurance company was required to file every VIN as they came on or left and DOT had access to it. Would cut down on those 50 truck but insure 25 carriers. And when a company is being closed down and the brand new one has those same VIN's.