CHARLESTON, SC · Member since 2019 · 10 posts · 2 votes
Good day BP Forum,
I co-own a few rentals with my partner. We currently own auto insurance through other insurance parties that we own our properties through, we have found a provider that can consolidate everything and get us an overall lower rate as a result. My question is for anyone who has moved their personal automobiles under the LLC umbrella and converted to commercial insurance.
Is moving the autos underneath the LLC a good move and converting to commercial? I would like the ability to write off our autos as expenses if possible or if there is another option that someone has considered....I'm certainly open to any sort of opinion or advice!
Insurance Agent · Norwalk, CT · Member since 2016 · 2k+ posts · 1k+ votes
5y
Phillip,
A couple of thoughts on moving the Auto's to a policy with the LLC as named insured:
1. If the LLC is not the owner of the vehicles either the title needs to be changed to the LLC or the policy would need to be written with the owners names and the LLC as Named insureds
2. If the Autos are placed in the name of the LLC they become assets of the LLC. They could be at risk in a lawsuit or in a dispute on the distribution of assets if the LLC is liquidated
3. Check with your attorney about how it would impact your personal assets if someone tries to pierce the veil of the LLC.
4. Generally I've found that that vehicles insured under a commercial policy are more expensive than the same vehicle under a similar Personal Auto policy