This question was answered based upon current rules, regulations & statutes in effect on July 24, 2019
Can you insure a vehicle on a personal policy if it is leased in the company name???
Kathy Cormier: If the vehicle is insured using a FID/EIN it no longer qualifies for a personal auto policy...here is the MAIP Rule and most carriers use the same rule, some have created their own.
RULE 27. PRIVATE PASSENGER DEFINITION
A. A motor vehicle of the private passenger or station wagon type that is owned or leased under contract for a continuous period of at least twelve months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number, and is not used as a public or livery conveyance nor rented to others. A vehicle which meets the conditions of Rule 31, regarding the transportation of fellow employees, students or others for consideration, is included in this definition, provided such vehicle is not registered for carrying passengers for hire.
B. A motor vehicle that is a pick-up or van, that is owned or leased under contract for a continuous period of at least 12 months by one or more individuals, excluding (1) partnerships, (2) corporations, (3) unincorporated business associations, and (4) other legal business entities with a federal employer identification number,
- has a gross vehicle weight rating of less than 10,000 pounds or has a vehicle rating group assigned to it by the Automobile Insurers Bureau of MA (AIB), and
- is not used for the delivery or transportation of goods or materials unless such use is incidental to the insured’s business of installing, maintaining or repairing furnishings or equipment.
C. Gross Vehicle Weight Rating means the value specified by the manufacturer as the loaded weight of a single vehicle.
D. An eligible vehicle under this rule whose title has been transferred to a trust may be insured under a policy issued by assignment through the MAIP, subject to the following requirements: the grantor of the trust must be an individual or lawfully married individuals residing in the same household, and must be the only insured(s) named in Item 1 of the Coverage Selections Page. All vehicle(s) insured under the policy must be owned by the trust. A vehicle owned by a trust in which the grantor is a partnership or corporation must be written under a commercial auto policy.
If a motor vehicle is leased as described in the foregoing paragraphs, and the lessee is obtaining the insurance, the policy must be issued to the lessee as named insured and Endorsement M-0070-S, “Coverage For Anyone Renting An Auto To You,” must be attached to the policy.
I hope this helps.
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