Think Twice About PPT’s
Movers! Think twice before purchasing a private passenger vehicle in the company name.
We think it is wonderful when an owner decides to purchase a vehicle for their significant other or family member as a surprise gift.
We understand that there is a long held belief that there is a significant tax right-off when adding personal use vehicle to the commercial policy.
These vehicles are often provided to other family members and we have seen claims where vehicles were loaned to friends.
We would ask that the following considerations be made:
- The cost for commercial insurance for truckers and trucking type operations has sky-rocketed including the cost of insuring PPTs on the schedule;
- The tax credits will likely be eclipsed by the increase in premium between the personal auto market and the commercial auto market;
- Claims go into experience rating and they impact the insureds modification for three years, but insurance underwriters see them for 5.
- In the event of a serious claim, with the current claims environment with nuclear verdicts, a commercial insurance policy and business assets will likely drive up any demand.
Most commercial insurance markets are looking to reduce this exposure so please coach your insureds when they are purchasing PPTs to consider the above.
Written By: Josh Godfrey
Josh attended Seattle Pacific University for his higher education and has been in the Moving and Storage industry for 15 years, specializing in Underwriting. When Josh is not at work he likes to read, go to the range and cook.