The Conflict Between Delivery Jobs And Insurance

By Susan Reynolds

I?m sure you as a parent dread the day your children start driving, as yet another item on the long list of how they were to drive you insane once becoming teenagers. I?m also sure that you probably do not worry about them having a job that would have them excluded from the family auto insurance policy. Excluded? This is a little known fact, but delivery drivers face this problem. For parents of pizza delivery boys facing this dilemma, read on to know how to ensure your teenager has the needed coverage.

Pizza Delivery: Car Insurance Dilemma Was your first auto 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.

Now we're beginning to catch on, aren't we? There's a big difference between parking your car in one place and being on the road during work hours. In the first instance there's virtually no chance of damage and in the second you're driving at relatively high speed with many other drivers, a big risk for the insurer. Your child's job exposes him or her to the most risk of all circumstances as well as being something of a novice driver. It's not surprising that most insurance firms have no intention of insuring a driver with such a high risk. You, and you alone could be held responsible for repairs and/or injuries, which is also an unacceptable risk.

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.

Also available to companies is a "non-owned auto insurance policy". That way the employee has full liability coverage when delivering on company time. But it does not cover damages to your vehicle, that's why if your child is going to be delivering, pizza or whatever, you need to talk to your own insurance company and see what you can do to protect your teen and your vehicle.

As a last resort, you can always just purchase outright a proper commercial auto policy. The cost for this kind of insurance is not insignificant, so it's not a decision to make lightly. However, if you feel that the risk is there or your teen's making a long haul of the job, and you have no other options for getting the right coverage, you should probably go for it. No matter how pricey it is upfront, it's still less than the expense of paying for car repairs and the like yourself. As they say, better safe than sorry. - 21393

About the Author:

Susan Reynolds is the webmaster for a leading South African Insurance provider who specialises in Car Insurance.