Business Vehicles in Your Personal Name vs. Commercial Name

If your business relies on business vehicles, you are likely well aware of their financial risks and associated exposures.

Whether you use automobiles to ferry passengers, ship products, transport equipment or for other means, minimizing risk levels and maximizing the cost-effectiveness of these sizable investments should be a top priority.

However, while the aforementioned goals may seem obvious, achieving them can entail complicated and multistep processes that require diligence and research before vehicles come into your possession.

One key consideration that must be addressed when shopping for cars, trucks or other commercial vehicles is how to register them.

Insurance Considerations When Purchasing and Registering a Business Vehicle

Commercial and personal vehicles are classified differently and often have different requirements, particularly regarding insurance. In most cases, companies that own and use motor vehicles for business purposes are legally required to carry certain levels of commercial auto insurance.

For example, in Texas, businesses must meet minimum bodily injury liability coverage and property damage liability coverage requirements to ensure other parties affected by incidents for which the business is at fault can recoup their losses.

In addition to vehicles registered under your company’s name, you are generally required to have commercial auto coverage for a personal vehicle used for business purposes.

As such, regardless of whether you register a vehicle under an individual’s name or that of a company, insurance should be a top priority.

Registering a Vehicle

Your company should be well aware that the ability to register a business vehicle under a personal identity could not always be a viable option. Still, if you wish to explore these possibilities, you should be aware of various potential advantages and disadvantages.

For example, registering a new car under your company’s name generally qualifies as a business expense, allowing you to write it off for tax purposes.

We’re Here to Help

With a knowledgeable and resourceful team based in San Antonio, Texas, Liberty Auto Insurance is well-positioned to help motorists understand and address their coverage needs.

Our independent agents work with a network of highly rated carriers and will help you identify the right policy and understand various nuances of vehicle-related risk management, such as registration options. Contact us today to learn more.

This blog is intended for informational and educational use only. It is not exhaustive and should not be construed as legal advice. Please contact your insurance professional for further information.