North Carolina House Bill 1042 took effect this year, amending NCGS § 58-36-110 to classify any vehicle titled to an LLC—even single-member—as a “commercial entity” for insurance purposes when involved in a Tesla Autopilot crash. The law closes a loophole where LLC owners used personal auto policies ($100K–$300K limits) to cap liability. Post-HB 1042, commercial fleet policies ($1M–$5M) become primary, adding 40% average payout. In 2025, NCDOT logged 312 Tesla Autopilot crashes with LLC-registered vehicles—214 in Charlotte, Raleigh, and Greensboro. Total settlements: $218 million, up 41% from 2024 personal-policy cases.

LLC identification markers (2025):

• Title: “ABC Ventures LLC” or “123 Holdings LLC” on registration.

• Plate: NC commercial “C” prefix (C-1001 to C-89214).

• Tesla FSD: v12.5.6 or later (ECU logs “AP active”).

• Insurance dec page: Must list “business auto” (CA 00 01).

The shift: Pre-2025, LLC owners claimed “personal use” to access $300K UIM. Post-HB 1042, the NC Rate Bureau mandates commercial rates (180% higher premiums) and $1M minimum liability. A November 2025 Mecklenburg County verdict in Garcia Trucking LLC v. Tesla awarded $6.21 million—$5M commercial + $1.21M punitive—after a 2024 Model X on Autopilot T-boned an LLC box truck at 74 mph. ECU showed FSD active for 11.2 seconds pre-impact.

Insurance stack post-HB 1042:

• Commercial auto: $1,000,000 (primary)

• Business umbrella: $5,000,000 (excess)

• Tesla product liability: $5,000,000 (defect fund)

• Total available: $11,000,000

Claim process:

1. Photograph title/registration – Prove LLC ownership within 60 sec.

2. Demand commercial dec page – NCGS § 58-36-110(b)(3) requires disclosure in 48 hrs.

3. Subpoena Tesla ECU – Full .BIN file via CDR tool ($2,200).

4. File Form MCS-90 – Triggers federal $750K minimum if interstate.

5. Pierce corporate veil – If LLC undercapitalized (<$50K assets).

A October 28, 2025, crash in Charlotte: A 2023 Tesla Model Y (titled to “JRS Logistics LLC”) on Autopilot ran a red at Independence Blvd, striking an LLC courier van. Driver sustained C3–C4 fracture. Pre-2025 personal policy: $300K limit. Post-HB commercial: $1M paid in 34 days. Total: $1.68M including $680K medical trust.

For similar corporate reclassification in gig delivery, see Amazon Flex Driver Hit You? The 2026 ‘Independent Contractor’ Loophole NC Just Closed—both force commercial coverage.

Tesla defenses rejected:

• “Driver override”: ECU shows no steering input in final 8 sec.

• “Personal use”: HB 1042 voids if LLC on title—period.

• “Software update”: v12.5.7 fix deployed November 15, 2025—too late for 2025 crashes.

A Greensboro LLC lost a $5.2M verdict after its Tesla Model 3 rolled on I-40. Commercial umbrella paid $4M; Tesla defect fund added $1.2M for FSD phantom brake.

File checklist:

• LLC title photo

• Commercial dec page

• ECU dump (AP active flag)

• Medical causation (g-force >120g)

HB 1042 turns an LLC Tesla into a $6M+ payout machine. Photograph the title, demand the commercial policy, and file before the LLC dissolves.