QuestionHi Bob. My husband has gotten into the business of hauling junk cars for residential customers. He pays people for their junk cars, then hauls them to the junk yard and the junk yard pays him according to the weight of the vehicle.
He's been doing this as a side thing for a few months now to see if it would work, and it's been going good so he'd like to get legal. We have no idea where to start, can you give us some suggestions?
Right now my biggest fear is insurance because the truck he's using is covered under our car insurance, but i'm not sure that would cover damage to another person's vehicle if a car would happen to somehow slip off the truck and cause damage.
Any suggestions will be much appreciated. Thanks.
AnswerHi Camille.
Depending on where you live, he might have to get some sort of towing license. The difference is that he is towing HIS cars and not someone elses. Technically they are his cars during that trip, so he might be exempt. Usually a call to your state's Department of Transportation can answer that question. Make sure you talk to someone who knows their stuff. Too often you'll get an operator who has no clue and gives the wrong answer.
I would make sure that you have enough liability insurance. You don't need cargo insurance, or very little, because if he wrecks one of his junk cars, has it lost any value? Honestly, I know of a couple of guys here in the Tampa area who do exactly the same thing as your husband. They have a company name, basic insurance and that's about it. I doubt their incorporated or, truthfully, pay that much in taxes. It's a big cash business. When they haul the cars, and have the title, it's their car and they can haul it as they wish.
When he hauls cars for dealers, body shops or other people, and the cars are not his, then it's an entirely different ballgame. Now there are a lot of loops you have to jump through. For now, just make sure you have good liability insurance and call the DOT to see what they say.
Good luck!
Bob Stephens
