Auto Insurance Question

[Guest]

Hi - quick question - my son has a summer job where occasionally he is asked to make deliveries across town. My question is: who is liable if he gets in a car wreck during a delivery? Is it our insurance, or the company he works for? Just wondering, he doesn't do deliveries every day but still, he is 19 and responsible, and they reimburse him for the mileage. Thanks in advance!

 

[Insurance-Guy]

If he is driving either his or your truck then it would fall on your policy or your son's policy if there was a claim. If it is a company truck then it would fall on the business.

 

[jhuang]

Check your policy, some policy will exclude losses that are used for work. Actually, quiz your agent...if he fumbles around and can't answer you straight thne find another agent.

 

[Guest]

Thanks for the responses. I was worried about asking my agent because I didn't want to raise any red flags and, luckily so far they have only asked him to make a couple of small deliveries. He has also been offered a weekend job picking up equipment for a neighbor's business so it will really come up then if he takes that job.

 

[Guest]

There is language in the personal auto policy that requires the insurance company to be notified if the use of a personal auto has changed since the application for auto insurance. This allows the insurance company to deny a claim or to charge the premium that should have been charged for the vehicle's use. Also, the personal auto policy describes how the use of a pickup truck or van is excluded.
Commercial auto insurance is available to insure vehicles owned by a business which is more expensive than personal auto insurance. Typically a business owner will avoid owning a vehicle for the purpose of deliveries unless the revenue can pay for the cost of ownership and insuring the vehicle.
Therefore, unless your son has the use of a vehicle owned by a business it is recommended to contact your insurance agent to discuss the impact the change of use of your auto will have on your auto insurance.

 

[jhuang]

Thanks for the responses. I was worried about asking my agent because I didn't want to raise any red flags and, luckily so far they have only asked him to make a couple of small deliveries. He has also been offered a weekend job picking up equipment for a neighbor's business so it will really come up then if he takes that job.

That is your biggest reason why you need to talk to your agent. You don't want to raise a red flag, but if, and a big if your son has an accident that causes a huge claim, you're screwed.

Better to be safe than sorry.