Removing Equipment Requires Proof. Here’s Why

 


Thinking about pulling a truck off your policy?

With rates the way they are, we don’t blame you. A parked unit feels like a premium drain especially when paid off, and every carrier we know is looking at how to cut costs.

But if your policy has federal or state insurance filings, removing equipment isn’t just a phone call. It’s paperwork, and for good reason.

No, it’s not about us keeping your money. It’s about protecting your authority and keeping your name off a claim tied to a truck you thought was long gone.

State and Federal Filings Tie Everything Together

When your policy includes BMC-91, BMC-91X, or state-specific insurance filings, your insurance company is certifying that your entire commercial operation meets the minimum public liability requirements. That applies to every power unit you own or operate under that DOT number, whether you're crossing state lines or not.

Even if the truck is parked, in the shop, or sitting in the back lot, it’s still tied to your filings until you prove otherwise.

FMCSA and the states care about VINs, a lot. That’s how they track inspections, crashes, and filings tied to your DOT number.

If a truck you thought was removed ends up in a crash, and the VIN is still registered to your company, your insurance carrier can get pulled into the claim. Without proof that it was sold, scrapped, or leased away, that truck is still your responsibility in the eyes of regulators and the courts.

The MCS-90 (and State Equivalents) Make It Even Messier

Every policy with federal filings includes an MCS-90 endorsement. Some state filings come with similar language. These endorsements say your insurance company will pay any final judgment for bodily injury or property damage tied to your trucking operation, even if the vehicle wasn’t on the policy.

That means if your carrier can’t prove that truck was sold, scrapped, or released, they could still be forced to pay.

They might have a legal fight later, but the payout can happen up front. That’s why insurers need to lock down proof before removing any equipment from a policy with filings.

What Counts as Proof

To take a truck off your policy and protect everyone involved, most carriers will require one of the following:

1. Bill of Sale
Clearly lists the VIN, buyer, and sale date. Shows the vehicle is no longer owned by your company.

2. Lease Termination
Signed agreement that ends an equipment lease. Shows you no longer control or operate the truck.

3. Proof of Disposal or Total Loss
Documents from a salvage yard, lender, or insurance company confirming the truck was junked, repossessed, or written off.

Texts and verbal confirmations don’t count. Insurance carriers need a paper trail in case there’s ever a claim, audit, or legal dispute later.

What Happens If You Don’t Send It

If you try to remove a unit without documentation, your insurer is stuck between two bad choices:

  1. Leave it on and keep charging you.
  2. Take it off and risk getting hit with a claim they can’t defend.

No carrier wants to risk exposure under federal or state liability filings. That’s why they won’t process a removal until they get proof.

We’ve seen claims drag carriers back into court months later, all because there was no paperwork showing the truck was out of service.

Timing and Best Practices

Plan ahead when removing equipment:

  • Send the documents before the policy change
  • Wait for written confirmation from your agent or carrier
  • Check your FMCSA or state DOT records to make sure filings are still active

If you’re parking a truck temporarily, ask your agent about switching to storage or comp-only coverage instead. It’s often safer than removing the unit completely.

Why It Matters in This Market

With premiums rising, every truck off the road feels like a savings opportunity. But from an insurance and compliance perspective, every VIN tied to your DOT number is a potential risk unless you’ve cut that tie officially.

This isn’t about commission. It’s about protecting your business from the ripple effects of a bad claim tied to equipment that should have been off the books.

The carriers who handle removals the right way avoid the lawsuits and confusion later. The ones who skip the proof usually end up back in the mess they were trying to avoid.

Need help removing equipment the right way or verifying your filings are still intact?
Call us at 254-294-7798 or email info@trucku.biz.
We’ll walk you through exactly what your carrier needs and how to avoid the headaches.

 

Disclosure:
This TRUCK U post is for educational purposes only. It is not legal advice, insurance advice, or a substitute for calling your agent. We’re good, but we’re not psychic. Policies vary, laws change, and courtrooms get weird. Don’t make decisions based solely on something you read on the internet, unless it’s from us, in writing, with your name on it.

All opinions are our own and do not represent the views of any carrier, employer, or underwriting department that occasionally wishes we were quieter on LinkedIn.

 

 

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