Licensing and Insurance are related in MA
I have read a number of posts regarding licensing and insurance, and for me (in Massachusetts) they are interdependent. Here is why.
I intend to do VERY part time project-oriented work (for pay, barter, and for free because I am a good neighbor or a sucker) for people who live within a mile or so of my house. I have a full time job working at home as a self-employed technical writer and have flexible hours, so I can pop over and do a few hours of work when needed. But I don't want to get into the tractoring business full time; nor do I want to replace any of the hard working people out there mowing lawns or plowing snow. Only special projects that no one else is doing for folks. But I want to be insured for both loss and liability.
I don't have a heavy-duty truck & trailer, so I must drive on the road to get around. Bottom line is if I want the tractor insured, it has to be titled and licensed as a commercial vehicle in MA.
Here is how my agent broke it down. There are two policies (owners and auto) from two insurance companies.
1) Liability for damage on a job site (or even a nonpaying neighbor's "job") to a customer's property is covered under the owners policy ($100,000/$300,000).
2) Liability for other property and vehicles while driving on the road is covered under the auto policy.
3) Accidental damage to tractor and attached implements (including rollover while working) is covered under the auto policy, subject to the deductible of $1000.
4) Accidental damage to tractor and attached implements while driving on the road is covered under the auto policy, subject to the deductible of $1000.
5) Theft and fire to tractor and attached implements is covered under the auto policy, subject to the deductible of $1000.
Originally the owners policy also covered theft and damage to implements that are not attached to the tractor, but I removed this coverage (an extra $500/year) because I don't think someone will steal 500 lb implements. More likely, they would steal the tractor with whatever is attached to it, and for this I am covered (for the cost of the tractor plus the most expensive front and rear attachments possible). This risk I am willing to take!
The cost for licensing the tractor as a commercial vehicle was $122/year. There will be excise tax coming as well, but I don't know what that will be. I have a license plate that I wired to the bottom of my removable SMV tag so I can leave it off if not on the road.
The cost for the auto policy is $924/year.
The cost for the owners policy is $663/year. Based on the insurance company's minimal income bracket of $40K/year (in my dreams!).
I also have a business policy for my writing business, but the owners policy for the "landscaping" business (this is the closest category the insurance company has) could not be combined as the businesses are so different. So they are written separately. And, the tractor could not be considered another vehicle under my current 2-car auto policy.
I realize I may be over-insured, but once you put the tractor on the road or on someone else's property, you open yourself up to all sorts of nasty possibilities that I want a degree of protection from. I will in fact spend more on insurance than I make this year, but that is the price of admission in my mind.
I know I didn't answer the question about NY laws, but I think the issue is larger than just whether or not it is legal to drive on the road unlicensed, or not.
Who invited the party pooper (me!)?
