Commercial Auto Coverage
The Conflict Between Delivery Jobs And Insurance
There’s a lot of things for parents to worry about when their kids start growing up. One that most of you may not think about, however, is the negative impact a simple pizza delivery job can have on acquiring a good car insurance policy. In fact, many insurance companies are more reluctant to insure delivery drivers, and you’ll want to take steps to work around that as much as possible.
Pizza Delivery: Car Insurance Dilemma. Was your first car insurance policy a breeze, or was it more akin to an interrogation? Your insurance agent would probably have had queried you about almost everything! This is because the insurance company wants to know every minor detail about what the car will be used for before they decide you are ‘insurable’. They also need to know how much they are going to charge you if they consider you eligible for coverage from their company. This isn’t a mere protocol to make your life troublesome. Insurance companies know that drivers who are on the road more often would have a higher chance of being involved in a car crash (which would ultimately lead to insurance claims). Therefore, more claims – higher premiums.
It’s pretty obvious where we’re going on this one. In comparison to a nice, safe office job, a person who is on the road during work hours becomes a higher car insurance risk. Most car insurance companies just would not take such a high risk for non-commercial premiums. It may come as a rude shock if your teenager is involved in an accident when delivering pizza and the company refuses to cover the damages. Thousands of dollars could be on your bill, and there could be nothing you can do about it.
There’s An Alternative-A Commercial Auto Insurance Policy. It’s a terrible idea to just hand your child the car keys and wish them a good day at work. There’s a lot more information you need to know, both as a parent and the owner of the vehicle. What kind of insurance does the employer carry or offer to broker? The ownership of companies that hire drivers for delivery are legally required to carry coverage that protects them during working hours. Sometimes they have company cars that may only be used for company business during work hours, that way the insurance rates can be managed.
Still others will use a non-owned style policy. This kind of insurance will work for delivery drivers using their personal family cars. However, it’s important to note that non-owned auto insurance only provides liability coverage. If your car gets banged up, you’re outta luck. That can be fine if you feel that the overall risk for other problems is low and your teen isn’t going to be doing the job for a very long time. But if there’s risk of other problems cropping up, or your child wants to be a delivery driver for a long time, you’ll definitely want to talk with the employer and see what can be done for a more comprehensive policy.
You may be required to purchase a commercial auto insurance policy. Stand back, this is going to hurt, but knowing that your vehicle is covered instills peace of mind. It’s a lot less costly than repairs to your vehicle. In very short order you’ll be ‘encouraging’ your teenager to move on to bigger and better career achoice. And who knows, if he or she pays the premiums out of their own pocket they may be convinced it was all their own idea!
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