I Own MC but trying to lease onto someone

Discussion in 'Trucking Industry Regulations' started by theguy1900, Jun 4, 2022.

  1. theguy1900

    theguy1900 Bobtail Member

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    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.
     
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  3. Concorde

    Concorde Road Train Member

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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..
     
  4. theguy1900

    theguy1900 Bobtail Member

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    but did you have to change the title? Our trucks are financed, if they weren’t, I’d just retitle under different company and call it a day.
     
  5. Concorde

    Concorde Road Train Member

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    I haven’t done anything yet, still paying silly insurance on a new truck that’s been sitting since December.

    I can’t answer your title question with any certainty but guessing you wouldn’t have to change the name on the title..?
     
  6. Ridgeline

    Ridgeline Road Train Member

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    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.
  7. wis bang

    wis bang Road Train Member

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    Does anyone sub-lease any more?
     
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