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

[Guest]

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

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

Dan

I don't know what their coverages are unfortunately. Most 19 year old kids have no idea about this type of stuff, and I have a feeling he wouldn't like it if I went poking around at where he works (too bad, not the first time I've done something he didn't like!). This involves us because of the insurance (which is Nationwide BTW). I could ask the owner, who I am acquainted with. She may not be as versed in insurance as she should be. Heck she may not even know her employee is sending people out of deliveries, not sure. Maybe I could suggest she contact her agent to see if non-auto is in their coverage.

Also, no he wasn't hired to be a delivery person. He was hired to unload merchandise, pack up merchandise for delivery, mailroom type stuff, some web stuff. And anything else anyone needs him for, which seems to include "just running this over to so and so because they need it today stuff". Argh!

 

[knoxinsurance]

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

Let's assume a person gets a part-time job using their car (courier for example) and they fail to tell their insurance carrier. They then get in a non-injury, but still semi-serious accident while working,. If the insurance carrier finds out the accident happened during the course of employment, what would the consequences be? Do the consequences vary from state to state? Carrier to carrier?
Would they probably cover the claim, then drop you right away? Would they have the right to refuse the claim completely?

Thanks

Any type of delivery or pickup of property or products is excluded from coverage. This type of use is considered commercial purpose and is excluded. No coverage would exist for the courier. L

A personal policy would cover business or artisan use because there is no product or property involved. Some examples of business use would be like Rick, who goes out to see a client, a lawyer who travels to court, a realtor who takes a client to see properties. Artisan would be your construction worker type who work for a specific company and drive to various locations for work. If this type of use is being done and an insurance company is not aware, a loss more than likely will be covered but from that point on, business/artisan use will be added or excluded.

 

[Soaringagent]

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

Did the accident happen already?

 

[djs]

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

Does anyone ever ask these questions PRIOR to the event? Nope....

Dan

 

[BlockO]

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

A big part of the confusion regarding delivery drivers are the employers themselves. insurance companies make it very clear that they're not going to cover a driver making deliveries, but I don't think pizza shop managers are aware of this....

for example: I've seen numerous ads in college newspapers hiring delivery drivers for pizza shops. In many of the ads, one of the requirements for employment says "must have current auto insurance".

I never understood why? what good does it do for a driver to have insurance that's not going to provide coverage anyways?

Every time I see an ad like that, I assume the mgr is clueless to how insurance works. I wonder if these same managers are telling these young kids that their insurance is sufficient, even though it's not?

 

[luke4275]

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

I believe my policy is issued for pleasure and that is all. I don't use my car much for work but do ocassionally, for ex to meet a broker rep for lunch, etc,.. but will probably do some more driving during aep. should i alert the carrier to this change?

 

[KPIA]

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

Just had a client whose kid had a pizza delivery wreck. Claim was denied as commercial use which is defined in the policy (in a nutshell) as delivery of any product.

As a result, I got to talking to an auto accident lawyer I know who told me in those cases the pizza store's carrier step in, pays the claim and the claim against the driver disappears. After all, the plaintiff gets their damages paid so they aren't interested in squeezing the driver who turns out to be uninsured after the denial.

I for one have my own policy rated as "business" use as I drive to appointments, the bank, the post office, Staples, etc.. But even rated as such, if I started delivering pizza in my car, they would deny any ensuing loss while I was delivering said yummy pizzas.

 

[Guest]

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

KP, good to know,

Any insurance agent that doesnt rate their vehicle for business use is an ***, IMHO

 

[joshb]

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

KP, good to know,

Any insurance agent that doesnt rate their vehicle for business use is an ***, IMHO

I rate mine as personal use. My truck stays parked in the parking lot all day. I contacted my underwriter about occasionally going to an appointment (less than 1 a month) she said leave it at personal and its not a big deal.

 

[Guest]

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

I rate mine as personal use. My truck stays parked in the parking lot all day. I contacted my underwriter about occasionally going to an appointment (less than 1 a month) she said leave it at personal and its not a big deal.

You never go to a clients house? You never go to a networking meeting? You never go meet a realtor or lender for lunch or anything?

Your U/W probally just did you a favor,
But you do drive to the office correct? Well, then that at the minimum makes it commuter use.

Cheating the system, making the rest of us pay for it. THX