Consequences of Not Telling Your Carrier Your Car is Used for Job

[Sales71]

Re: Consequences of Not Telling Your Carrier Your Car is Used for

I got in a few accident when I was a teen delivering pizza. No problem with the insurance of course it was with a small shop no uniform or logo on my moms car. Hehe I use to make good tip money. Not to mention all the funny people I saw at there homes.

 

[EB34]

Re: Consequences of Not Telling Your Carrier Your Car is Used for

I bet most DO. Who wants to take that risk?

It's just a cost of business. Do it right or you may be real disappointed later.

They don't even have to prove that your wreck was on the job. Just that you used your car sometimes for work. If you deduct milage on your taxes, you would be exposed right there.

This assumes that your auto claims department has access to your tax records. As far as they know, you go to an office and sit behind a desk all day like most p&c people do.

 

[Newby]

Re: Consequences of Not Telling Your Carrier Your Car is Used for

This assumes that your auto claims department has access to your tax records. As far as they know, you go to an office and sit behind a desk all day like most p&c people do.

You can try to find loopholes all you want but it's just better to do it honestly?

Would you advise a smoker to say they don't smoke on an application to get a lower life insurance rate? Is what you're doing any different?

If you don't get caught you screwed the insurance company. But how much do you really gain compared to how much you put at risk. Not to mention the ethics of it.

 

[joshb]

Re: Consequences of Not Telling Your Carrier Your Car is Used for

We had a claim out of our office where the driver used his vehicle for business lied on the app and on our disclaimer form we typed up as an agency (specifically initialed next to not used for delivery). He was a courier and was involved in a not at fault accident with a motorcycle and the motorcyclist was killed. In Florida you can be partially at fault and even though the biker was street racing with another bike and running a red light, our client was found at fault at 1%. His policy paid out full limits ($100,000) The carrier found it easier to pay the claim then to argue in court. After the accident his policy was uprated until the next renewal (premium went from around $1200 every six months to $5500 every six months). He was non-renewed, but didn't even make it that far, he found it cheaper to "self-insure."

 

[EB34]

Re: Consequences of Not Telling Your Carrier Your Car is Used for

Anyone who would have an occupation as a courier and would list their vehicle as not for business use is an ***. There is no getting around that if the insurance carrier wanted to argue the contrary. The occupation of an insurance agent, however, is a little more vague. For all practical purposes, we COULD only sell applications over the phone. I live in a no fault state, and anyone who lists their vehicle as for business use falls under the term "artison's coverage". Artison's coverage includes delivery drivers, repairmen drivers, and tow truck drivers and is typically 50% higher premiums than regular coverage. These insureds are a much higher liability risk on the road than someone who makes a visit to someone's house occasionally with pen and paper in hand. I'm not encouraging anyone to lie on their car insurance app, but it is a grey area for us legally.

 

[Todd Payne]

Re: Consequences of Not Telling Your Carrier Your Car is Used for

Definitely let your insurance company know you use the vehicle for business/delivery or they may just deny your claim if there is a loss. Not a position you want to be in. Could you get away with misrepresenting your usage? Maybe, but it's not worth it. If you cause an accident and the insurance company denies your claim, you could be paying for damages for a long time at couriers wages, when you could have just ponied up and paid a little more in premium and been covered.

 

[Guest]

Re: Consequences of Not Telling Your Carrier Your Car is Used for

How about this: my son gets a part time job for the summer, and I find out his boss asks him to make a couple of deliveries. He has also asked him to take stuff to the post office. This is a warehouse job, ( small items) ending when school starts. Mostly they use UPS but every once in a while they have sent him out instead. I freaked when he told me this, worried about the liability mostly. My son didn't know any better, but I do, and so should his boss. The kid is a good driver but what would happen if he hurt someone? I'm not up on this as I am a health life agent. He likes this job and of course doesn't want to tell them no.

Oh yeah, he didn't have this job when we took the policy out, not that it matters.

 

[joshb]

Re: Consequences of Not Telling Your Carrier Your Car is Used for

How about this: my son gets a part time job for the summer, and I find out his boss asks him to make a couple of deliveries. He has also asked him to take stuff to the post office. This is a warehouse job, ( small items) ending when school starts. Mostly they use UPS but every once in a while they have sent him out instead. I freaked when he told me this, worried about the liability mostly. My son didn't know any better, but I do, and so should his boss. The kid is a good driver but what would happen if he hurt someone? I'm not up on this as I am a health life agent. He likes this job and of course doesn't want to tell them no.

Oh yeah, he didn't have this job when we took the policy out, not that it matters.

I would say that is incidental if its every once in awhile and not a big deal. If its more like once a week thats a different story though.

 

[djs]

Re: Consequences of Not Telling Your Carrier Your Car is Used for

I assume he wasn't hired as a delivery driver. This is somewhat a 'one-off' type of use, that random incidental use. Since its not a primary use, some carriers would cover it (not pizza delivery) for collision.

The company should have an auto policy with 'non-owned' auto coverage. This extends their liability coverage to incidental use of a vehicle they don't own. The common thought process is someone uses their car to go pick up lunch for a working meeting, get into an accident, the non-owned auto coverage would extend the business auto liability coverage to this.

Of course, you have no idea what coverages the business actually has, I'm sure. You can ask....

Dan

 

[Guest]

Re: Consequences of Not Telling Your Carrier Your Car is Used for

that scenerio is where non-owned auto comes into play.....

learn the definitions of non-owned auto and hired auto if you are going to write ANY commercial auto