FYIs for LLCs

FCIS Insurance RV Insurance

RV & Auto Insurance is Based on Garaging/Storage State, Not Registration State

The insurance carrier determines the risk of a policy based on the location where the vehicle is primarily kept. This is where claims are most likely to happen. As such, it’s important to note that if you don’t write an insurance policy in the state where your vehicle is garaged, you may face the risk of having a future claim denied.

This means that if you have a vehicle that is registered in one state but primarily garaged in another, you should make sure to purchase insurance in the state where it is garaged/stored. For example, if you live in Illinois but keep it at your RV lot in Tennessee, you should purchase insurance rated out of the state of Tennessee, since that is where the vehicle is physically located most of the time. Failure to do so could result in a claim being denied if an accident were to occur.

It’s also important to note that insurance rates can vary significantly between states. If you are planning to move to a new state, it’s a good idea to research insurance rates beforehand to ensure you are prepared for any potential changes in premiums.

Ultimately, it’s important to be transparent with your insurance agent about where your vehicle is primarily garaged. This will help ensure that you have the appropriate coverage in place and that your claim will be processed quickly and efficiently in the event of an accident or other covered loss.

Vehicle Insurance is Written in the Owner’s Personal Name

If the vehicle is used only for your personal use, and not for any business/commercial purposes, then the insurance companies require the policy be written under the personal name of the owner/member(s) of the LLC. The insurance companies are more concerned with how the vehicle is going to be used (personally or commercially), rather than how the vehicle is owned/titled. We can usually list the LLC as an Additional Interest on the policy, but with the policy would still be written in your personal name.

Additionally, having the policy under the personal name of the owner/operator ensures that any claims or issues with the policy can be addressed directly with the individual. While registering your RV or auto under an LLC may have benefits for tax or liability purposes, it is important to remember that vehicles used for personal use must still be written under the personal name of the owner/operator.

DMV Registration Requirements

It should also be noted that our Insurance Agency does not advise customers on where, or how, to register their vehicles. Your insurance can have implications with your state’s DMV, and so we
encourage you to consult your DMV on what requirements they may have.