A vehicle registered to a Limited Liability Company, but used for personal purposes should use a personal insurance policy, not a commercial policy

When you buy a vehicle as an international visitor to the United States, visitor.us forms a Montana Limited Liability Company (LLC), owned 100% by you, and registers your vehicle to your LLC.

Many people ask whether a commercial insurance policy is required because the vehicle is owned by a legal entity.

The short answer is - No, a personal insurance policy is most appropriate.

In the United States, a vehicle's use, not its ownership, decides whether a vehicle should be insured with a personal insurance policy or a commercial insurance policy.

American personal auto policies cover personal, non-commercial use of a vehicle.

If the vehicle is used for a commercial purpose, such as making deliveries or providing ride-sharing services, the driver's personal auto policy does not provide coverage - even if the vehicle is registered in the name of the driver as an individual.

Ridesharing and delivery drivers must therefore carry a commercial policy that takes effect when they're "on-the-clock."

However, if you are an international visitor to the United States that owns a vehicle via a Limited Liability Company, and you are using that vehicle for purely personal purposes, a personal auto insurance policy is required.

Just as an Uber driver needs a commercial policy when driving riders - even though the vehicle is registered to herself as an individual - a person who owns a vehicle, registered to an LLC, but used solely for non-commercial purposes, needs a personal auto policy.

In short, a vehicle's use - commercial or personal - not its ownership, determines whether it should be insured under a commercial or personal policy.