Commercial Auto Insurance

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How do you guys do auto insurance?

I will be using my personal vehicle as my inspection vehicle. Do you put your vehicle in your LLC’s and use a commercial policy for it? Or keep it in your personal name? Do you have 2 vehicles? 1 for work and 1 personal?

Annnnd go!

Thanks so much for the advice and or tips

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This is not advice, just what I chose to do.

I have a personal vehicle which my business LLC reimburses me directly for mileage.

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Consider:

When Do I Need Commercial Auto Insurance?
If driving your car for business purposes, you need to buy commercial auto insurance.

Commercial auto insurance may be required in all of the following situations:

  • You use your vehicle to carry work equipment – like tools, documents, or deliveries
  • You transport flammable or hazardous material
  • You use your vehicle to carry, transport, or tow commercial equipment – like a plow or trailer
  • You’re delivering any products or services, like pizzas or online packages
  • You’re delivering newspapers using your vehicle
  • You use your vehicle to transport people as a chauffeur, taxi driver, or rideshare driver
    In some cases, basic commercial driving could be covered under a standard auto insurance policy – say, if you drop off mail for your company once a week and that’s it. In most cases, however, you need to buy a commercial auto insurance policy. If you’re unsure, contact your insurer and ask if you need a commercial auto insurance policy.

Source: Does Commercial Auto Insurance Cover Personal Use?

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As a sole-proprietor LLC (disregarded entity), I like to keep it simple. Adding complexity doesn’t give many tax advantages for this type of business entity.

I use my personal vehicle and keep track of mileage for claiming the mileage deduction.

As far as insurance, technically you should inform your insurance company if you are using your personal vehicle in any business activity.

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Colton,

I’m not a CPA, however I have one. I was told and believe that using you personal vehicle for your business opens you up for liability which could penetrate your corporation or LLC.
My company has two vehicles which are owned by company and operated by the company. All expense’s with vehicles are paid for by the company. (This makes taxes, records easier). We have advertising on the vehicles when using for non business trips. (Never drive naked, you would be surprised how may eyes see, call for services). Our commercial policies has higher limits, plus covers all equipment inside the vehicle.
Keep the Faith,
John

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It depends on your insurance carrier. If it’s in your personal name then if an accident occurs that holds you and everything you own in a suit. I put my vehicle under the LLC. There is no recourse to come after you personally. It costs more to do that, but is worth it. My carrier recommended it that way.

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